Absa Group Limited

The Absa Group Limited (JSE: [http://fin.jse.co.za/findata/sharesearchresult.asp?searchtype=string&searchtext=ASA&requesttype=&y=&GetCodeOnly=1 ASA] ) (also known as ABSA or Absa) is the largest consumer bank in South Africa.

Overview

Absa is based in Johannesburg and listed on the JSE Limited and is one of South Africa's largest financial services. Business is conducted primarily in South Africa and on the Africa continent, where it has equity holdings in banks in Mozambique, Angola, Tanzania, and Zimbabwe.

As at June 2006, Absa had assets of R466 billion, more than 720 physical outlets, 8,1 million customers, 6 256 automated teller machines and 34 688 permanent employees. cite web |url=http://www.idc.co.za/Conference%20Papers/2006/Africa%20Development%20Finance%20Week/PeterMageza.pdf |title=NDB’s: Crowding in the private sector |publisher=Industrial Development Corporation |author=Peter Mageza (Group COO, ABSA-Barclays Group, South Africa) |accessdate=2008-06-21 | pages=pp. 2]

Absa is a signatory of the South African Financial Sector Charter and one of the major issuers of the Mzansi Account.

History

Amalgamated Banks of South Africa was formed in 1991 through the merger of the United, Allied and Volkskas Groups. This was followed in 1992 by acquisition of the Bankorp Group (which included TrustBank and Bankfin). The banks each traded under their own names until 1998, when the United, Volkskas, Allied and TrustBank brands were merged into a single brand in 1998. The name was changed to Absa Group Limited in 1997. In 2005 Barclays Bank of the United Kingdom purchased a 56.4% stake in Absa cite web |url=http://www.ukglobalinfluence.org/Docs/UK%20FDI%20and%20Biodiversity%20Impacts%20-%20Report.pdf |title=UK Foreign Direct Investment and Sector Impacts |publisher=Joint Nature Conservation Committee |author=GHK Consulting Limited |date=2008-03-19 |accessdate=2008-06-21 |pages=pp. 20 |format=PDF] , which represents the largest foreign direct investment in the country. In early 2007 though the Barclays Bank acquisition of Absa came under severe criticism from the governor of the South African Reserve Bank, Tito Mboweni who said he "had yet to see the benefits of Barclays' management of Absa".

Organisation

ABSA Group Limited is structured into a number of divisions which provide various services:
*ABSA Bank Limited - retail, commercial, and wholesale banking services and asset management services
*ABSA Financial Services Limited - financial services, short- and long-term insurance, and wealth management
*ABSA Capital Limited - Investment Bank
*ABSA Asset management
*ABSA Life
*ABSA Insurance Company
*ABSA Fund Managers
*ABSA Mortgage Fund Managers
*ABSA Health Care Consultants
*ABSA Secretarial Services

In addition to these, Absa has other subsidiaries operating throughout various parts of Africa (through majority shareholdings in Angola, Mozambique and Tanzania and minority shareholdings in Namibia and Zimbabwe), as well as other interests in the banking and property sectors.

At the beginning of 2006, Absa took over Barclays' South African subsidiary. Over the next five years, Absa and Barclays plan for Absa to take over all of Barclays' African operations (except Egypt) through a series of acquisitions, which could make ABSA-Barclays the largest bank in Africa.

Leadership

Absa's current Group Chief Executive is Steve Booysen. Other Absa Group Executive Directors include:
*Zarina Bassa
*Dominic Bruynseels
*Robert Emslie
*Willie Lategan
*Peter Mageza
*Jacques Schindehütte
*John Vitalo
*Louis von Zeuner

Sponsorship

Absa is a sponsor of many activities in South Africa the most recognized of which is the Absa Currie Cup, the domestic rugby union tournament held annually. Absa also sponsors the Absa Cup Football tournament. In the beginning of 2005, Absa sponsored the A1 Grand Prix of Nations in Durban, South Africa.

Bank Charges

A 2008 Finweek Bank Charges Report cite web |url=http://www.fin24.com/articles/default/display_article.aspx?ArticleId=1518-24_2376287 |title=SA's most expensive bank: Absa |publisher= Fin24.com |author=David McKay |accessdate=2008-08-19 ] has found ABSA Bank to be the most expensive bank in South Africa.

References

* [http://news.bbc.co.uk/2/hi/business/4720687.stm "Barclays seals £2.6bn Absa tie-up"] , "BBC News", 27 July 2005. Accessed May 2007.
* [http://www.busrep.co.za/index.php?fSectionId=606&fArticleId=3756827.stm "Mboweni fires confounding salvo at Barclays"] , "Business Report", 30 March 2007. Accessed June 2007

External links

* [http://www.absa.co.za Official website]
* [http://www.cipro.co.za/ccc/EntDet.asp?T1=M1986003934&T2=ABSA%20GROUP&T3=1986/003934/06 CIPRO registration details for the ABSA Group] - For a complete list of the ABSA companies, do a search for ABSA on this page
* [http://www.obssa.co.za/ South African Banks participating with the "Ombudsman for Banking Services"]