Absa, which is majority owned by Britian’s Barclays, is also considering acquisitions in Namibia, Zambia and Botswana to boost its bank assurance business, the lender’s deputy chief executive told Reuters in the same interview.
Maria Ramos, Deputy Chief Executive Louis von Zeuner and Financial Director David Hodnett met with Reuters following an investor presentation in Johannesburg today.
Under the planned Basel III series of banking reforms, lenders will be required to hold more capital and liquidity to avoid another financial crisis and massive taxpayer bailouts.
“For Absa the impact is primarily on the liquidity side,” Ramos said.
“It is the liquidity issue that is the big challenge and will bring with it the highest cost.”
The bank would also consider inorganic growth, meaning acquisitions or capital tie-ups, in southern Africa to boost its bank assurance business, Von Zeuner said.
Bank assurance involves the selling of insurance products by a bank.
“We’re looking at three countries at the moment, Namibia, Zambia and Botswana. 90% of the life insurance business is in the southern part of Africa,” Von Zeuner said.
“We’re exploring whatever opportunity to go into those markets.”
Source: Business Day
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