Barclays Africa profit growth slows as rising interest rates bite
(Reuters) - South Africa's third biggest bank Barclays Africa Group Ltd reported a 7 percent rise in half-year profit on Friday, a slower growth rate as rising interest rates at home hit consumption and investment spending. * Diluted headline earnings per share, South Africa's mainprofit measure, increased 7 percent to 856.7 cents in the sixmonths ended June 30 compared with a growth rate of 11 percent ayear earlier. * "In South Africa, business confidence remains weak, andthe combination of weak job growth, higher inflation and risinginterest rates have placed a strain on consumer finances," ChiefExecutive Maria Ramos said in a conference call. * Ramos said Barclays Plc, which owns a majority stake inBarclays Africa, exploring strategic and capital market optionsto reduce its shareholding in Barclays Africa. * Declared a 2 percent higher interim dividend of 460 centsper share * Credit impairments increased 46 percent to 5.2 billionrand ($367.06 million) resulting in a 1.29 percent credit lossratio from 0.97 percent. * Revenue grew 13 percent to 36.5 billion rand, as netinterest income increased 14 percent and non-interest incomerose 10 percent. * Net interest margin (on average interest-bearing assets)improved to 4.97 percent from 4.7 percent. (Reporting by Tiisetso Motsoeneng. Editing by Jane Merriman)