Barclays Bank Plc has said the ongoing talks with its subsidiary Absa Group of South Africa, on a proposed merger, would not affect the operations of Barclays Tanzania or the National Bank of Commerce (NBC).
“Barclays Bank of Tanzania and NBC would continue to operate as two separate and independent entities, with separate boards and management teams,” a statement issued by Acting Head of Corporate Affairs Tunu Kavishe in Dar es Salaam on Friday said.
The bank assured shareholders that it was not guaranteed that the discussions would lead to a merger. And even then, the proposal was not expected to be concluded before next year.
Barclays first opened its doors in Tanzania in 1925 and continued to operate in the country until 1967 when its operations were nationalized to become NBC. It made a comeback in the year 2000.
Meanwhile, according to a statement issued by the NBC in Dar es Salaam on Friday, despite tough and aggressive competition and a sluggish economy, the bank believes that there are opportunities in the Tanzanian market that can be leveraged to ensure solid business growth.
The bank has declared a second quarter loss of 20.2bn/- which equated into a cumulative six months loss of 17.7bn/-, but believes that it can wipe out the losses.
The statement also said that the losses in the second quarter can be attributed to two items, namely Corporate Impairment losses amounting to 13.9bn/- and provisions raised for cost and under accruals from 2008 to June 2012 of 13.7bn/-, relating to technical assistance provided by a parent company abroad.
The statement quoted Acting Managing Director, Marius Alberts as saying that an independent contractor was used to review all balance sheet accounts and close off all items at risk. “These have been accounted for, it is something of the past, and we are looking forward to a very positive six months,” he said.
By ABDUEL ELINAZA, Tanzania Daily News