Absa head office in Johannesburg
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The Absa Group Limited (JSE: ASA) (Absa), listed on the JSE Limited, is one of South Africa's largest financial services groups, offering a complete range of banking, bancassurance and wealth management products and services. Absa's business is conducted primarily in South Africa. In addition to this, the Group has equity holdings in banks in Mozambique and Tanzania.
At 30 June 2009, the Group had 718,2 million shares in issue and a market capitalisation of R79 billion. The Group had assets of R754,3 billion; 11,3 million customers; 9211 automated teller machines and 36 920 permanent employees.
Absa is a subsidiary of Barclays Bank Plc, which holds a stake of 55,4% in the Group. Barclays is a major global financial services provider engaged in retail and commercial banking, credit cards, investment banking, wealth management and investment management services with an extensive international presence in Europe, the USA, Africa and Asia.
History
1991: Formation of Amalgamated Banks of South Africa Limited (Absa) through the merger of UBS Holdings, the Allied and Volkskas Groups, and certain interests of the Sage Group.
1992: Absa acquired the entire shareholding of the Bankorp Group (which included TrustBank, Senbank and Bankfin), thereby extending its asset base even further.
1997: The name of the holding company, Amalgamated Banks of South Africa Limited was changed to Absa Group Limited, consisting of three main operating divisions.
1998: The United, Volkskas, Allied and TrustBank brands were consolidated into a single brand, and Absa adopted a new corporate identity.
2005: Barclays acquired a majority stake in Absa as part of its drive to expand its global product and international retail and commercial banking businesses in markets outside the UK.
Shareholding
The bank’s major ordinary shareholders (top 10) as at 30 June 2009
Barclays Bank PLC – 55.4%
Public Investment Corporation – 5.9%
Batho Bonke Capital (Proprietary) Limited – 5.1%
Old Mutual Asset Managers – 3.5%
Investec Asset Management – 2.1%
StanLib Asset Management – 1.9%
Sanlam Investment Management – 1.8%
AXA Financial SA (Bernstein and Alliance) – 1.3%
Allan Gray Limited – 1.0%
Foord Asset Management – 1.0%
Other – 21.0%
Black Economic Empowerment
The Absa Black Economic Empowerment policy is based on a long-term strategy and the group follows an integrated approach to BEE. It views the Financial Services Charter as a core measurable attribute of the key performance measurements of the Absa executive team. Absa's business units show innovation and enthusiasm in assisting the Absa Group in its quest to meet and exceed the FSC targets.
Corporate Social Investment
Absa’s key focus areas within CSI have been selected to meet the company’s goal of improving the lives of people across South Africa, and are aligned with national development imperatives as highlighted by government. These key focus areas are:
Education
Entrepreneurship
Health
Employee Community Involvement
Group-wide Community Initiatives
Environment
Heritage, Arts and Culture
The Absa brand
In 1998 a strategic decision was made to unify and reinvent the Absa brand. The complexity of multiple brands with overlapping target markets made no sense. Hence, Absa decided to adopt a single brand and provide an array of financial services; a one-stop shop offering simple, uncomplicated banking relationships, value for money, stability, convenience and superior customer service.
Through the development of the new Absa visual identity, emphasis was placed on the first letter, ‘A’ which is also synonymous with the first letter of the Roman alphabet, the ‘Alpha’, symbolising the ‘beginning’.
Logo development is crucial and is the most frequently used visual association of an organization. An important consideration of this development is the colour choice, it is a crucial differentiating factor between the four main competitors and has important psychological relevance.
The strategic focus of the design was the depiction of ‘union; fusion and wholeness’; attributes that the brand stands for today.
The pay-off line ‘Today, Tomorrow, Together’ is a reflection of the brand image and values, reinforcing the concept of ‘togetherness’ and the formation of lasting relationships. It reflects the solidarity of the brand, as well as the commitment by Absa to customers; employees and other stakeholders.
Absa sponsors South Africa’s national soccer team, Bafana Bafana; the Springbok rugby team; the oldest regional rugby rivalry in the world, the Absa Currie Cup; The Rugby Sevens, the Absa Premiership and Absa Cape Epic.
The bank also sponsors a range of lifestyle events festivals like Aardklop, Absa KKNK, Design Indaba theatrical productions, and the television program, Noot vir Noot. It claims the largest corporate art collection in the country, featuring over 20 000 artworks by local artists; and hosts Absa L’Atelier, South Africa’s longest running art competition.
Absa received a gold, three silvers and a bronze award at the 2008 Marketing Excellence Awards. This was in recognition of the success of its sponsorship initiatives.
Leadership
Absa's Executive Directors are:
Maria Ramos (Group Chief Executive)
Louis von Zeuner (CEO: Absa Retail Bank)
Jacques Schindehutte (Group Financial Director)
Alfie Naido (Chief Operating Officer)
David Hodnett (Group Risk Director)
Willie Lategan (CEO Absa Financial Services)
Happy Ntshingila (Executive Director)
Venete Klein (Executive Director)
John Vitalo (CEO: Absa Capital)
Controversy
Bank Charges
A 2008 Finweek Bank Charges Report [1] has found ABSA Bank to be the most expensive bank in South Africa. A year later, the 2009 Finweek Bank Charges report[2] again not only found ABSA to charge the most for its services, but that ABSA topped the list for a second consecutive time for the biggest increase in bank charges.
References
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