Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Barclays’s Absa Says Interested in Nigeria After African Deal

July 30 (Bloomberg) -- Absa Group Ltd., the Johannesburg-based lender acquiring most of parent company Barclays Plc’s African assets, said it’s interested in entering the Nigerian market as it boosts its presence across the continent.

The bank needs a competitive advantage before it can enter the country, Africa’s second-largest economy and biggest oil producer, Absa Chief Financial Officer David Hodnett said today in an interview in Johannesburg. The lender could take advantage of its experience in corporate banking, he said.

Absa plans to spend 1.25 billion rand ($127 million) by 2015 on refurbishing branches in Africa, Chief Executive Officer Maria Ramos told investors in Johannesburg today. The bank said in December it would buy the bulk of Barclays’s African assets in an all-share deal worth 18.3 billion rand.

The economy of Nigeria, Africa’s most populous nation with more than 160 million people, is set to grow 7.2 percent this year, versus an average of 5.6 percent for the rest of sub-Saharan Africa, according to the International Monetary Fund.

Absa isn’t looking at any of the nationalized Nigerian lenders, Hodnett said separately today on a conference call.

The Asset Management Corp. of Nigeria, set up by the government to buy bad debts from banks, is seeking to sell the lenders by next year. They were nationalized after being unable to meet capital requirements following a 2008 to 2009 debt crisis triggered by loans given to stock market speculators.

To contact the reporters on this story: Renee Bonorchis in Johannesburg at rbonorchis@bloomberg.net; Chris Kay in Abuja at ckay5@bloomberg.net

To contact the editors responsible for this story: Dale Crofts at dcrofts@bloomberg.net; Vernon Wessels at vwessels@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.