Barclays has announced its intention to sell down its 62.3% interest in Barclays Africa Group over the coming two to three years, after posting an annual loss of £394m ($550m).

The UK Bank said it plans to reduce its shareholding “to a level which will permit us to deconsolidate it from an accounting and regulatory perspective, subject to shareholder and regulatory approvals if and as required.”

Barclays Africa is a well-diversified business and a high quality franchise.

“However the stake in Barclays Africa presents specific challenges to Barclays as owners, such as the level of capital held in respect of Barclays Africa, the international reach of the UK Bank Levy, the GSIB buffer, and MREL/TLAC and other regulatory requirements,” the Bank said in a statement.

Barclays Africa has reported a 17% return on equity for 2015 in its standalone local currency results versus the 8.7% return reported for Africa Banking in Barclays’ results.

The Barclays Africa Board noted that it is clear from this announcement that Barclays PLC is reducing its shareholding in its African business due to "recently introduced regulatory burdens specific and particular to Barclays PLC as a UK headquartered and globally significant financial institution".

These regulations significantly decrease Barclays Africa Group’s standalone returns for Barclays PLC.

“We will now actively engage with Barclays PLC and our regulators to ensure that this process has an appropriate and satisfactory outcome for all our stakeholders,” Barclays Africa said.

Following the announcement by Barclays Bank PLC, Wendy Lucas-Bull, Non-Executive Director, has indicated that she is stepping down from the Barclays PLC and Barclays Bank PLC boards with immediate effect, to ensure that no conflicts of interest exist as a result of her being a member of these boards as well as the Chairman of the Barclays Africa Board.

Lucas-Bull’s status will therefore be that of independent non-executive Chairman on the boards of Barclays Africa Group and Absa Bank.

Barclays Africa is an independent entity listed on the Johannesburg Stock Exchange that is well capitalized with a track record of generating strong returns.

It is delivering on its strategy, has a strong and independent board, and is a bank regulated by the South African Reserve Bank.

The Barclays Africa Board confirmed that the Group will continue to operate in the normal course of business.

Barclays Africa is the majority (and in some cases sole) shareholder of the Barclays Africa operations in South Africa, Kenya, Botswana, Ghana, Zambia, Mauritius, Mozambique, Seychelles, Uganda and Tanzania (Barclays Bank Tanzania Limited and National Bank of Commerce Limited).