Barclays Group Africa is expected to release full year results for 2013 on 11 February 2014.
Forward guidance released via the Stock Exchange News Service (SENS), highlights that the company is expecting 19% to 20% earnings per share growth over the period, while the diluted headline earnings per share is expected to be 13% to 14% higher.
It should be considered that the headline earnings growth is from a low base, as the 2012 comparative was a year where the company reported a 63% increase in credit impairments from retail mortgages and commercial property finance in Retail and Business Banking (RBB). When compared to 2011 earnings, headline earnings per share appear to have only grown around 3% over the two year period.
We have witnessed significant weakness in banking counters post the interest rate increase on 29 January 2014. Investors will be looking at the level of credit impairments for Barclays Group Africa in the full year 2013 results and the possible effects on debtors should interest rates continue to rise.