Absa Group Limited
Encyclopedia
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
in South Africa.
Overview
Absa is based in JohannesburgJohannesburg
Johannesburg also known as Jozi, Jo'burg or Egoli, is the largest city in South Africa, by population. Johannesburg is the provincial capital of Gauteng, the wealthiest province in South Africa, having the largest economy of any metropolitan region in Sub-Saharan Africa...
and listed on the JSE Limited and is one of South Africa's largest financial institutions. Business is conducted primarily in South Africa and on the African continent, where it has equity holdings in banks in Mozambique
Mozambique
Mozambique, officially the Republic of Mozambique , is a country in southeastern Africa bordered by the Indian Ocean to the east, Tanzania to the north, Malawi and Zambia to the northwest, Zimbabwe to the west and Swaziland and South Africa to the southwest...
, Namibia
Namibia
Namibia, officially the Republic of Namibia , is a country in southern Africa whose western border is the Atlantic Ocean. It shares land borders with Angola and Zambia to the north, Botswana to the east and South Africa to the south and east. It gained independence from South Africa on 21 March...
, and Tanzania
Tanzania
The United Republic of Tanzania is a country in East Africa bordered by Kenya and Uganda to the north, Rwanda, Burundi, and the Democratic Republic of the Congo to the west, and Zambia, Malawi, and Mozambique to the south. The country's eastern borders lie on the Indian Ocean.Tanzania is a state...
On 30 June 2009, the Group had 718.2 million shares in issue and 11.3 million customers; 9211 automated teller machines and 36,920 permanent employees.
Absa is a signatory of the South African Financial Sector Charter
Financial Sector Charter
The South African Financial Sector Charter is a transformation charter in terms of the Broad-based Black Economic Empowerment Act.The Charter came into effect in January 2004 as a result of the Financial Sector Summit hosted by the National Economic Development and Labour Council , the...
and one of the major issuers of the Mzansi Account
Mzansi Account
The Mzansi Account is a low income transactional banking account that was developed in line with the commitments of South Africa's Financial Sector Charter...
.
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, which represents the largest foreign direct investment in the country. In early 2007 the Barclays Bank acquisition of Absa came under criticism from then governor of the South African Reserve BankSouth African Reserve Bank
The South African Reserve Bank is the central bank of South Africa. It was established in 1921 after Parliament passed an act, the "Currency and Bank Act of 10 August 1920," as a direct result of the abnormal monetary and financial conditions which World War I had brought...
, Tito Mboweni
Tito Mboweni
Tito Mboweni was the eighth Governor of the South African Reserve Bank. He succeeded Dr. Christian Lodewyk Stals on the 8 August 1999 and was succeeded by Gill Marcus who replaced him as Governor on 9 November 2009. He is currently the Chairman of AngloGold Ashanti.The youngest of three children,...
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 servicesFinancial servicesFinancial services refer to services provided by the finance industry. The finance industry encompasses a broad range of organizations that deal with the management of money. Among these organizations are credit unions, banks, credit card companies, insurance companies, consumer finance companies,...
, short- and long-term insuranceInsuranceIn law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
, 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
Property
Property is any physical or intangible entity that is owned by a person or jointly by a group of people or a legal entity like a corporation...
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 newly appointed Group Chief Executive is Maria RamosMaria Ramos
-Early life:Born Maria da Conceição das N. C. Ramos on 22 February 1959 in Lisbon, Portugal, Ramos went on to study economics and taught the subject at the University of South Africa and the University of the Witwatersrand...
. Other Absa Group Executive Directors include:
- D W P (David) Hodnett
- W T (Willie) Lategan
- J (Jan) Lubbe
- B (Bobby) Malabie
- F (Fergus) Marupen
- D (Daphne) Motsepe
- V (Alfie) Naidoo
- H (Happy) Ntshingila
- G R (Gavin) Opperman
- S (Stephen) van Coller
- L L (Louis) von Zeuner
Sponsorship
Absa is a sponsor of many activities in South Africa the most recognized of which are the SpringboksSouth Africa national rugby union team
The South African national rugby union team are 2009 British and Irish Lions Series winners. They are currently ranked as the fourth best team in the IRB World Rankings and were named 2008 World Team of the Year at the prestigious Laureus World Sports Awards.Although South Africa was instrumental...
and Bafana Bafana
South Africa national football team
The South Africa national football team represents South Africa in association football and is controlled by the South African Football Association, the governing body for football in South Africa. South Africa's home ground is Soccer City, known as FNB Stadium due to a naming rights deal, in...
. Absa also sponsors the Premier Soccer League
Premier Soccer League
Premier Soccer League is the trading name of the National Soccer League of South Africa. The top league is the ABSA Premiership, sponsored by ABSA...
, South Africa's top tier football league, the Currie Cup
Currie Cup
The Currie Cup tournament is South Africa's premier domestic rugby union competition, played each winter and spring , featuring teams representing either entire provinces or substantial regions within provinces...
, the domestic rugby union
Rugby union
Rugby union, often simply referred to as rugby, is a full contact team sport which originated in England in the early 19th century. One of the two codes of rugby football, it is based on running with the ball in hand...
tournament. Absa previoslyto sponsored the Absa Cup
Nedbank Cup
The Nedbank Cup is the current name of South Africa's premier club football knockout tournament. While many formats have been used over the years, the tournament has always been based on the idea of giving lower league and amateur teams a chance to compete with clubs from the top league for the cup...
the premier football knockout tournament. In the beginning of 2005, Absa sponsored the A1 Grand Prix
A1 Grand Prix
A1 Grand Prix was a 'single make' open-wheel auto racing series. It was unique in its field in that competitors solely represented their nation as opposed to themselves or a team, the usual format in most formula racing series. As such, it was often promoted as the "World Cup of Motorsport"...
of Nations in Durban
Durban
Durban is the largest city in the South African province of KwaZulu-Natal and the third largest city in South Africa. It forms part of the eThekwini metropolitan municipality. Durban is famous for being the busiest port in South Africa. It is also seen as one of the major centres of tourism...
.