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Absa separation from Barclays will not be done this year

Christian Fernsby |
Absa Group told investors yesterday that its programme to separate from Barclays is 69% complete, with 184 of the 266 projects having been successfully delivered, two years into the three-year programme.

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 underway with South Africa having been completed during 2018.

“Very few programmes of this level of complexity are being undertaken in the financial services industry today,” said Paul O’Flaherty, Chief Executive: Engineering Services, at Absa Group.

“We have passed several milestones, but there are hard yards still to come,” he said.

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.

The 266 projects in the separation programme have an average 18-month duration and several run concurrently.

More than 1,000 Absa employees and about 800 contractors are working to deliver the separation.

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