{"id":11862,"date":"2012-06-26T23:56:47","date_gmt":"2012-06-26T21:56:47","guid":{"rendered":"http:\/\/www.myza.co.za\/06\/update-2-barclays-absa-unit-slumps-on-profit-warning\/"},"modified":"2012-06-26T23:56:47","modified_gmt":"2012-06-26T21:56:47","slug":"update-2-barclays-absa-unit-slumps-on-profit-warning","status":"publish","type":"post","link":"https:\/\/www.myza.co.za\/press\/update-2-barclays-absa-unit-slumps-on-profit-warning\/","title":{"rendered":"UPDATE 2-Barclays’ Absa unit slumps on profit warning"},"content":{"rendered":"

\t\t<\/span><\/p>\n

* Says H1 profit to fall as much as 10 pct<\/span><\/p>\n

<\/span><\/p>\n

* Shares set for biggest one-day fall since 2008<\/p>\n

<\/span><\/p>\n

* Rival banks also hit in sell-off<\/p>\n

(Recasts, adds analyst comment)<\/p>\n

<\/span><\/p>\n

JOHANNESBURG, June 26 (Reuters) – South African bank Absa
\nGroup stunned the market with a profit warning on
\nTuesday citing an increase in mortgage-related bad debts,
\nsending its shares tumbling and raising fears a sector-wide
\nrecovery was losing steam.<\/p>\n

<\/span><\/p>\n

Absa, majority owned by Barclays, which like other
\nSouth African banks has been on the mend after a surge in bad
\ndebts in 2009, warned its first-half earnings could fall as much
\nas 10 percent as bad debt costs related to mortgages increased
\nmore than it had expected.<\/p>\n

<\/span><\/p>\n

It also said revenue growth remained subdued, raising
\nconcerns that other lenders in Africa’s top economy could be set
\nfor another downturn.<\/p>\n

<\/span><\/p>\n

“It is a huge disappointment,” said Charles Russell, an
\nanalyst at Macquarie First South Securities in Johannesburg.<\/p>\n

<\/span><\/p>\n

“They are saying it is just on the impairments on their
\nmortgage book… I cannot imagine that is the only thing that
\nhas gone wrong. The fact that they are not growing any revenue,
\nthat is more of a pervasive thing than just relating to their
\nmortgage portfolio.”<\/p>\n

<\/span><\/p>\n

Absa shares were down 7.7 percent at 144.49 rand at 1136
\nGMT, putting them on track for their biggest one-day percentage
\ndecline in nearly four years.
\n\u00a0 Continued…<\/strong><\/span><\/p>\n

<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

* Says H1 profit to fall as much as 10 pct * Shares set for biggest one-day fall since 2008 * Rival banks also hit in sell-off (Recasts, adds analyst comment) JOHANNESBURG, June 26 (Reuters) – South African bank Absa Group stunned the market with a profit warning on Tuesday citing an increase in mortgage-related […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_genesis_hide_title":false,"_genesis_hide_breadcrumbs":false,"_genesis_hide_singular_image":false,"_genesis_hide_footer_widgets":false,"_genesis_custom_body_class":"","_genesis_custom_post_class":"","_genesis_layout":"","ngg_post_thumbnail":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"font":"","enabled":false},"version":2}},"categories":[1],"tags":[830,2370,183],"class_list":{"0":"post-11862","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-south-africa","7":"tag-news","8":"tag-reuters","9":"tag-south-africa-2","10":"entry"},"jetpack_publicize_connections":[],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11862","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/comments?post=11862"}],"version-history":[{"count":0,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/posts\/11862\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/media?parent=11862"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/categories?post=11862"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.myza.co.za\/press\/wp-json\/wp\/v2\/tags?post=11862"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}