DURBAN – Absa Group said on Friday that its programme to separate from Barclays was 69 percent complete, with Barclays making a R12.6 billion contribution towards the separation programme announced in 2017.
The group said R8.5bn had been spent to date and 184 of the 266 projects have been successfully delivered, two years into the three-year programme.
It said capital expenditure would peak in the current calendar year and the separation programme is running on time and within budget.
The separation comprises the gradual replacement of services, primarily involving operational and information technology, provided to Absa by Barclays plc, which reduced its shareholding in the African financial services group to a minority stake in 2017.
The separation also includes transitioning from the Barclays brand to "Absa" in 12 countries, a process that is under way with South Africa having been completed during 2018.
Paul O’Flaherty, the chief executive: engineering services at Absa Group, said the company had passed several milestones, but there are hard yards still to come.
“The successful migration of core banking platforms in African regional operations in April and digital channels in African regional operations in May are significant recent milestones,” he said.