STANDARD Bank was looking to consolidate its grip in Africa by further expanding on the continent where it already ranks as the largest bank by assets, group chief executive officer, Jacko Maree said on Monday.
The group, whose balance sheet is being supported by a formidable shareholder in the form of Industrial and Commercial Bank of China (ICBC), also wanted to widen its product range to take advantage of Africa’s growing trade with other emerging markets, he said.
Maree spoke of Standard’s plans following the announcement yesterday that the bank had been named the best investment bank in Africa and in Nigeria, and best bank in SA in the 2010 Euromoney Awards for Excellence.
The latest awards are in addition to the group — which operates in 17 African countries and 16 outside the continent — being listed last week as Africa’s top bank by the influential industry publication The Banker. Standard was also ranked 106 among the world’s top 1000 banks last year, moving four places from the 2008 survey.
“Being recognised for our work in Nigeria and SA as well as for our continent-wide performance affirms our decision some years ago to establish and nurture on-the-ground presence and expertise in African markets,” Maree said.
“We will continue to expand our footprint and enhance our offerings as the continent’s growth consolidates and its trade relations with emerging markets strengthen.”
According to analysts at Imara, ICBC’s investment in Standard Bank had given the bank “enough balance sheet muscle” to take advantage of the growth potential in Africa and other emerging markets. Standard Bank is particularly keen on the Nigerian market, where it wants to venture into retail banking by possibly acquiring one of the smaller banks in the country.
The bank would join local rivals such as FirstRand and Nedbank, which have already confirmed they were also keen to invest in Nigeria. Standard has, in the past year, been involved in a number of high-profile transactions, which Maree said were a good indicator of its traction across Africa. These included being the joint lead arranger for US$1,6 billion funding of Botswana’s Morupule B power station expansion.
In the mergers and acquisitions arena, it played a leading role in the R7,3 billion SABMiller black economic empowerment deal, the R2,5 billion Tiger Brands empowerment deal, and raising R3 billion in equity for Illovo Sugar. BusinessDay.
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