Barclays (LON:BARC) Plc has seen a significant expansion in its African private banking business, doubling in size through the integration of ultra-wealthy clients from Credit Suisse (SIX:CSGN) via a referral agreement. This strategic move resulted in a 20-member team from Dubai, Zurich, and London joining Barclays' African private banking division. The growth rate of the division has surged by 30% year-on-year following Barclays' divestment of its entire stake in Absa Group Ltd.
The bank is now serving billionaires and affluent families across South Africa, Nigeria, Ghana, and Kenya, with a particular focus on the agritech and fintech sectors. According to the Henley & Partners' 2023 Africa Wealth Report, South Africa boasts 37,800 high-net-worth individuals while Nigeria is home to 9,800 millionaires. The report also predicts a 42% increase in high-net-worth individuals on the continent over the next decade, highlighting cross-country access and mobility as insurance against economic uncertainties.
Deal activity at Barclays has been on the rise recently. The bank has facilitated significant transactions such as the £910 million ($1.1 billion) sale of South Africa's Life Healthcare Group Holdings Ltd.'s UK-based diagnostics business Alliance Medical Group, and a stake sale in Gautrain, a high-speed rail.
Annabelle Bryde, head of UK private bank and Crown dependencies at Barclays, reaffirmed the bank's commitment to providing a comprehensive range of services for clients operating between their home country and the UK.
InvestingPro Insights
In light of the recent developments at Barclays Plc, it's worth considering some key insights from InvestingPro. According to the latest data, Barclays has a market cap of $24.3B and a low P/E ratio of 3.81, indicating potentially undervalued stock. The company's revenue over the last twelve months as of Q3 2023 was $28,980.31M, with a growth rate of 0.55%.
Turning to InvestingPro Tips, two points stand out. Firstly, Barclays has raised its dividend for 3 consecutive years, which may be attractive for income-focused investors. Secondly, the stock is currently trading at a low Price/Book multiple, suggesting it could be a good value buy.
For more detailed insights and tips, consider exploring InvestingPro's comprehensive platform, which offers a wealth of data and additional tips to guide your investment decisions.
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