Barclays Africa back to Absa
Barclays Africa changed its name back to Absa on Wednesday, in a rebranding aimed at underlining its South African roots as Britain’s Barclays gradually retreats from Africa.
The name change comes almost a year after Barclays sold most of its controlling stake in Absa, SA’s third-largest lender, ending more than a century of the British bank’s involvement in Africa to focus on its home market and the United States.
Absa is the brand name for the group’s retail banks in SA, but in future all of the group’s operations across Africa will use that brand name.
“Today we celebrate an important milestone in the pursuit of our vision to create a banking group that Africa can truly be proud of,” Absa CEO Maria Ramos said at an event in Johannesburg.
“Our new name and brand are an expression of our new purpose and strategic direction, which commits us to growing in Africa.”
Absa – originally an acronym for Amalgamated Banks of South Africa – was formed in 1991 through the merger of several banks, including Volkskas Bank.
Barclays bought a majority stake in Absa in 2005, but reduced its holding in 2017 – from 62% to 15% – by selling shares to large investors, including the Public Investment Corporation.
The rollout of the new brand would be completed in SA in 2019, and elsewhere in Africa by mid-2020, Absa said.
Alongside the rebranding, Ramos has drawn up an ambitious growth strategy to regain market share in retail banking at home and double the sales contribution from its 10 operations elsewhere in Africa.
Start-up banks and established financial services companies, like insurer Discovery, are pushing into retail banking in South Africa, pitting them against five established banks.
The market is fiercely competitive but offers potential as more than 20% of South Africans have no bank account.
For Ramos, competition will not stop Absa from regaining its market share.
“Are we concerned about competitors like Discovery and what market share they may be taking away? No, we’re not standing back,” Ramos said.
“We’re going to be competing to retain clients, to regain clients we have lost ... this is a game we intend to win.”
The bank previously announced plans to expand its corporate and investment banking with offices in New York and London. –