OPINION: Cheerio to Barclays, welcome back for our Absa

JOHANNESBURG – By now we have all realised that President Cyril Ramaphosa is not necessarily the knight in shining armour, but at least he is still a knight, and the prospect of an improved economy is here.

Banks favour improved business and consumer confidence, which usually drive more lending and transactions, therefore benefiting earnings.

The effect of lower risk premiums priced into bond yields leads to lower funding costs and higher net interest margins, which is favourable for protability.

Last week Barclays Africa Group (BGA) shed light on their new growth strategy announced in March, with, among other things, a reshuffle …read more