Helen Nyambura-Mwaura and David Dolan
Absa Group would merge its business and retail banking units, the Barclays-controlled bank said yesterday, and had created a small team of Barclays and Absa executives to lead its expansion across the continent.
The merger of the retail and business units follows a similar move by Barclays this year, when the UK bank realigned its own structure.
Bobby Malabie has been appointed as chief executive of retail and business banking for Absa. Malabie was formerly the chief executive of Absa Business Banking.
Nomkhita Nqweni, the chief executive of Absa Wealth, has been appointed to the Absa executive committee, while Gavin Opperman, the chief executive of Absa Retail Banking, will leave the group at the end of November.
The unified platform of retail and business banking could help Absa cross-sell more products, said Patrice Rassou, the head of equities at Sanlam Investment Management.
“I do think there is potential to better service (customers) by having a unified management team. I see more upside than downside,” he said.
“The Africa board announcement is interesting. The way I read that, Barclays are relying increasingly on Absa to drive the African strategy.”
In April Absa announced a strategy to work more closely with Barclays in sub-Saharan countries outside South Africa.
The British lender has operations in nine African countries outside South Africa and is moving its headquarters for the continent back to Johannesburg from Dubai after buying a 56.4 percent stake in Absa in 2005.
South Africa’s largest retail lender, like its rivals, wants to expand into the continent’s other fast-growing markets and Absa chief executive Maria Ramos said in March that the bank might consider a return to oil-rich Angola.
Absa’s retail unit posted a 75 percent jump in headline earnings in the six months to June, helped by sharply lower impairments, or bad-debt charges, but warned a repeat performance in the second half was unlikely.
Absa’s share price inched 0.27 percent higher to close at R135.10 yesterday. – Reuters