The Barclays Africa Group Limited, also known as Barclays Africa or the Group,
formerly Absa Group Limited, is a South African subsidiary of Barclays; it is a
financial services provider, offering personal and business banking, credit
cards, corporate and investment banking, wealth and investment management as well
as bancassurance. ABSA stands for "Amalgamated Banks of South Africa", and
is a wholly owned subsidiary of ABSA Group Limited.
Overview Barclays Africa Group Limited is 62.3%
owned by Barclays Bank PLC and is listed on the JSE Limited. The group is one of
Africa’s major financial services providers offering personal and business
banking, credit cards, corporate and investment banking, wealth and
investment management, and Bancassurance.
The group was formed through combining Absa Group Limited and Barclays’ African
operations on 31 July 2013. Reflecting the enlarged group’s pan-African focus,
the group's name changed from Absa Group Limited, to Barclays Africa Group
Limited on 2 August 2013. Registered head offices are in South Africa and the
group has majority stakes in banks in Botswana, Ghana, Kenya, Mauritius,
Mozambique, Seychelles, South Africa, Tanzania, Uganda and Zambia. The group
has representative offices in Namibia and Nigeria, and Bancassurance
operations in Botswana, Mozambique, South Africa and Zambia. Barclays Bank
Kenya and Barclays Bank Botswana continue to be listed on their
respective stock exchanges. Barclays Bank PLC has operations in Egypt and
Zimbabwe, which are part of the African business and continue to be run by
Barclays Africa Group’s management. Absa is a signatory of the South African
Financial Sector Charter. History
Absa was founded in 1991 through the merger of financial service providers
United Bank, the Allied Bank, the Volkskas Bank Group and the Sage Group.
The following year, Absa acquired the entire shareholding of the Bankorp Group
which included Trustbank, Senbank and Bankfin, thereby extending its asset
base further. In the early years of this union, each bank operated under its own
name. In 1998 they were fused into one single brand. A year later, Absa adopted
a new corporate identity and the name was changed into Absa Group Limited.
To cement the union achieved in 1998, Absa decided to adopt a single brand and
provide an array of financial services offering "simple, uncomplicated banking
relationships, value for money, stability, convenience and superior
customer service". In May 2005 Barclays Bank of the United
Kingdom purchased 56.4% stake in Absa as part of its drive to expand its global
product and international retail and commercial banking businesses to
untapped markets outside the UK. This transaction was Barclays' largest
foreign direct investment in South Africa, and its largest investment
outside the UK. In early 2007 the Barclays Bank
acquisition of Absa was criticised by governor of the South African Reserve
Bank, Tito Mboweni who said he "had yet to see the benefits of Barclays'
management of Absa". In 2013, the group acquired the entire
issued share capital of Barclays Africa Limited and issued 129,540,636
Consideration Shares to Barclays Africa Group Holdings Limited thus increasing
the shareholding of Barclays Bank PLC to 62,3%. The Consideration Shares were
listed on the JSE from the commencement of trading on 31 July 2013. The name
change from “Absa Group Limited” to “Barclays Africa Group Limited” was
announced on 22 July 2013, and became effective 2 August 2013.
Structure Barclays Africa Group Limited (is 62.3%
owned by Barclays Bank Plc., and is listed on the JSE Limited. Barclays Bank
of Kenya and Barclays Bank Botswana continue to be listed on their
respective stock exchanges. In addition to the entities listed in this legal
structure, Barclays Bank Plc. has operations in Egypt and Zimbabwe which
are an integral part of the banking conglomerate's African business and
continue to be run by Barclays Africa Group operationally.
Leadership In 2009, Absa appointed one of South
Africa’s most successful and highly regarded businesswomen, Maria Ramos as
the Group Chief Executive. Prior to joining Absa, Ramos had held numerous
high-profile jobs as the Director-General of the National
Treasury from 1996 to 2003, and as Group Executive of Transnet Limited from 2004
to 2009. She has been ranked as the ninth most influential woman in
international business by Fortune magazine. She won South Africa’s
Business Woman of the Year award in 2001, and was named Business Leader of
the Year by the Sunday Times’ Business Times in 2005.
Barclays Africa Group executive committee:
Chief Executive Officer: Maria Ramos Chief Executive: Wealth, Investment
management and Insurance Willie Lategan Chief Executive: Corporate and
Investment Banking Stephen van Coller Chief Executive: Retail and Business
Banking Craig Bond Chief Operating Officer: Charles Russon
Chief Risk Officer: Anil Hinduja General Counsel: Charles Wheeler
Group Executive: Marketing, Communications and Public Affairs Bobby
Malabie Deputy Chief Executive Officer and
Financial Director: David Hodnett Group Human Resources Executive: Sarah
Louw Compliance Officer: Heather Loewenthal
Major shareholders Below is the group’s 10 largest
shareholders as at 30 June 2015: Social responsibility
In 2007, Absa spent R60, 9 million in Corporate Social Investment projects.
The group’s key focus areas within CSI have been selected to meet the company’s
goal of improving the lives of underprivileged South Africans. These
areas include education, entrepreneurship, health and disability,
and the environment. = Education=
In an effort to promote its business, improve the quality of education and
widen access among rural and disadvantaged communities, Absa funds
two educational programmes: the Beyers Naudé Schools Development Programme
which is committed to improving maths and science grades in disadvantaged
schools across South Africa; and the Absa/Sowetan Early Childhood Development
Awards to support for early childhood development practitioners working in
rural and disadvantaged communities. = Entrepreneurship=
The group contributes to the development of entrepreneurship in South Africa by
offering young entrepreneurs start-up capital, mentorship and skills training.
= Health and disability= Absa has joined forces with the Public
Benefit Organizations to provide HIV and AIDS awareness, home-based care, and
assistance to orphans and vulnerable children. The group also runs a number
of special health projects as a joint venture with the Cancer Association of
South Africa and the Walter Sisulu Paediatric Cardiac Centre for Africa.
Absa has formed a partnership with the Thabo Mbeki Development Trust for
disabled people to support the empowerment of persons with
disabilities. = Environment=
Through collaborations with organizations such as the Peace Parks
Foundation, World Wildlife Fund, the Department of Environmental Affairs and
Tourism, and the Department of Water Affairs and Forestry, Absa creates
environmental awareness and helps to preserve South Africa’s natural
heritage. Sponsorship
Absa sponsors a range of activities in the arts and sports sectors. It is known
for its great support in arts festival like Aardklop, Absa Klein Karoo
Nasionale Kunstefees, and the biggest design industry event, Design Indaba.
The bank also sponsors various theatre productions and hosts South Africa’s
longest running national arts competition, the ABSA L’Atelier Art
Competition. The top two artists at L’Atelier are given the opportunity to
study at the art school, Cité Internationale Des Arts in Paris.
In terms of sports development, Absa in association with Barclays has created a
high-tech sports facility for the community of Gansbaai in the Western
Cape. The centre offers professional coaching in soccer, netball, basketball
and cricket. Absa has invested R4, 6 million in the project which will help
the community of Gansbaai get their kids off the streets and give them an
opportunity to engage in sports instead. Absa also sponsors major sports teams
including the national squad Bafana Bafana and the Springboks; and major
sporting events such as the Absa Currie Cup, Absa Premiership and the mountain
bike racing event Absa Cape Epic. Bank charges
A 2008 Finweek Bank Charges Report has found ABSA Bank to be the most expensive
bank in South Africa. A year later, the 2009 Finweek Bank Charges report again
not only found ABSA to charge the most for its services, but that ABSA topped
the list for a second consecutive time for the biggest increase in bank
charges. In 2010 ABSA was again rated by both Fin24 and Afriforum as having the
highest bank charges in the country. Increasing by 82% in pay-as-you-transact
fees from 2005 to 2010. The 2012 Finweek Bank Charges Report
ranked Absa’s Gold Value Bundle as the cheapest package option amongst the four
banks that were compared. The report has also shown Absa’s PAYT pricing structure
to have reduced by 25% leaving it third cheapest in the overall ranking. The
2012 Finweek Bank Charges Report specifically applauded Absa for the
simplified nature of its pricing structures and related brochures.
Mortgage loans misconduct In 2014 the South African courts made a
number of rulings against ABSA's mortgage loan division in a number of
summary judgements against clients who had taken out loans with the bank and
who the bank had accused of defaulting on their loans. In August 2014 ABSA
brought a case against James Grobbelaar and Kevin Jenzen for allegedly
defaulting on their home loans. However ABSA was unable to provide proof of the
loan agreements claiming that they had been destroyed in a fire in 2009 and
instead presented an unsigned blank loan agreement. In November 2014 ABSA
withdrew a case it brought in the North Gauteng High Court against Emmarentia
and Monica Liebenberg for allegedly defaulting on loans taken out in 2007
with the bank again trying to present blank unsigned loan agreement as proof
and claiming that the originals had been destroyed in a fire. The bank was
furthermore unable or unwilling to provide an electronic copy of these
documents even though they are required to thereby weakening their case.
The Liebenberg's accused the bank of trying to bully them "into submission,
by threatening legal costs and expenses and by pursuing a wrongful summary
judgement application knowing full well the massive disputes involved." The
Liebenbergs also stated in their affidavit that the bank inflated the
interest rate of the loan and charged additional fees that were never agreed
to thereby breaking the law. In South Africa banks have to secure
consent from the borrower if the bank wishes to securitise the loan. This
allows the bank to bundle in the loan with other loans and sell it to new
owners. The high likelihood that ABSA will claim that original documents have
been destroyed in a fire and not being able to provide an electronic copy when
a customer wishes to know if their loan has been securitised has raised concerns
in South Africa. Achievements and awards
The group has several prominent banking awards under its belt. In 2009 it was
awarded the coveted African Banker accolade as the most Innovative Bank in
Africa and New York’s Global Finance magazine named it the Best Islamic Bank
in the Middle East and Africa. In 2010 the group won two PMR Africa Silver
Arrow Awards for Islamic Banking; the Asian Banker honoured it with two awards
as the Best Mobile Phone Banking internationally and Best Retail Bank in
South Africa; and one of its divisions, Absa Capital, ranked Overall Top Bank in
the 2010 Risk Magazine South Africa survey.
In 2011, for the sixth year in a row, Absa won the Coolest Bank Award at the
Sunday Times Generation Next Awards which were held at the Theatre on the
Track in Kyalami, Johannesburg. 7000 youths from across six different
provinces voted for Absa as the Coolest Bank in the annual Sunday Times
Generation Next 2011 Survey. See also
List of banks List of banks in South Africa
References External links
Official website