BOB DIAMOND'S ATLAS MARA TO CUT COSTS AND JOBS

Atlas Mara, the African investment vehicle co-founded by ex-Barclays chief Bob Diamond, is cutting staff as part of an $8m cost-cutting drive following a difficult first half of the year, during which net profits slumped 71 per cent.

The group, whose aim is to invest in creating a pan-African banking group, was hit hard in the first half by what it described as the “full impact” of last year’s declines in African currencies, more challenging economic conditions and liquidity issues in a number of the countries in which it operates.

It racked up a hefty loss of $6.7m in the first quarter, although it still managed to eke out a net profit of $1.2m for the first half as a whole, down from $4.1m a year ago.

Founded in 2013, Atlas Mara has control of, or significant stakes in, banks in seven sub-Saharan African countries, including Union Bank of Nigeria.

Following the difficult conditions this year, Atlas Mara says it expects to reduce headcount by up to 35 per cent in its shared services and central functions and to reduce other “non staff” central costs. The cost-cutting drive is expected to reduce its annual operating expenses by $8m from 2017.

John Vitalo, Atlas Mara’s chief executive, said:

"The first half of 2016 presented a particularly difficult operating environment for Atlas Mara. The full impact of last year’s decline in African currencies, a more challenging macroeconomic backdrop and market liquidity constraints across a number of our countries of operation have all presented particular challenges to profitability.

Notwithstanding these challenges, we are pleased to report that our businesses have demonstrated an improving trend over the course of 2016 resulting in the second quarter better than the first, with June representing our best month of the first half and with this trend continuing into July."

Financial Times