Absa Group Formation and Development

The Absa Group has a rich history that spans over a century. The group was formed in 1991 through the merger of three major banks: Barclays Bank, United Bank, and Volkskas.

The merger created a large financial services group with a significant presence in South Africa. This move marked the beginning of Absa's journey as a major player in the country's financial sector.

Absa's history is deeply rooted in South Africa, with its roots dating back to 1911 when Barclays Bank first entered the country. The bank's early years were marked by significant growth and expansion.

Today, Absa is one of the largest financial services groups in South Africa, with a strong presence in the country's banking, insurance, and asset management sectors.

Absa Group has a rich history that spans over three decades. The bank was incorporated in 1986 through the merger of UBS Holdings, the Allied and Volkskas Groups, and certain interests of the Sage Group.

The bank's holding company was initially named Amalgamated Banks of South Africa Limited, but was later changed to Absa Group Limited in 1997. In 2005, Barclays acquired a 62.3 percent majority stake in ABSA, and the bank's subsidiaries in 11 sub-Saharan African countries were made part of the group.

Here's a brief timeline of some key events in Absa's history:

In 2018, Absa Group Limited underwent a rebranding, including a new logo and slogans. The company also opened international offices in London and New York City that year.

In 1986, Amalgamated Banks of South Africa (ABSA) Limited was formed from a merger of four banks.

The merger involved the United Building Society Holdings South Africa, Allied Bank South Africa, Volkskas Bank Group, and certain interests of the Sage Group.

ABSA acquired the entire shareholding of the Bankorp Group in 1992, which included TrustBank, Senbank, and Bankfin.

The holding company's name was changed to ABSA Group Limited in 1997, and a new corporate identity was adopted.

The "United", "Volkskas", "Allied", and "TrustBank" brands were retired in favor of the ABSA brand the following year.

In 2005, Barclays of the United Kingdom purchased a 56.4 percent stake in Absa.

The acquisition led to Absa Group Limited being rebranded as Barclays Africa Group Limited.

In 1986, Amalgamated Banks of South Africa Limited was incorporated through the merger of UBS Holdings, the Allied and Volkskas Groups, and certain interests of the Sage Group.

The company's history is marked by significant acquisitions, including the entire shareholding of the Bankorp Group in 1992, which included TrustBank, Senbank, and Bankfin.

In 1997, the name of the bank's holding company was changed to Absa Group Limited, and by 1998, the "United", "Volkskas", "Allied", and "TrustBank" brands were retired in favor of the ABSA brand.

In 2005, Barclays acquired a 62.3 percent majority stake in ABSA, and the company was subsequently rebranded as Barclays Africa Group.

A key development in the company's history is the divestment of Barclays' majority shareholding in Barclays Africa Group in 2016, worth £3.5 billion at the time.

In 2017, Barclays reduced its shareholding in Barclays Africa Group to 14.9 percent, paving the way for the rebranding of the company to Absa Group Limited in 2018.

Here's a brief timeline of some of the company's notable partnerships and agreements:

Our company, Ltd, has a rich history that dates back to 1995. It was founded by a group of entrepreneurs who saw an opportunity to bring innovative products to the market.

The company started small, with a team of just five people working from a single office. They were driven by a shared vision to make a difference in people's lives.

Ltd's early success was built on its ability to adapt to changing market trends and customer needs. This flexibility allowed the company to stay ahead of the competition and expand its product offerings.

One of the company's first major products was a revolutionary new gadget that quickly gained popularity among consumers. It was launched in 1997 and became a best-seller within the first year of its release.

Ltd's commitment to quality and customer satisfaction has been a key factor in its success. The company has always prioritized these values, even in the face of growing competition and changing market conditions.

As the company grew, so did its team. Ltd expanded its operations to new locations, hiring more staff and investing in new technologies to support its growth.

Absa Group is a multinational banking corporation with its headquarters in Johannesburg, South Africa. The company was formed in 1991 through the merger of the United Bank of South Africa and the Volkskas Bank.

The Absa Group has a diverse ownership structure, with the Public Investment Corporation (PIC) being one of its largest shareholders. The PIC holds a significant stake in the company, indicating a strong partnership between the government and the private sector.

The Absa Group operates through a network of subsidiaries and associate companies, providing a wide range of financial services to individuals, businesses, and governments across Africa and other parts of the world.

Absa Group Limited was previously known as Barclays Africa, but in March 2018, the group announced its name would revert to Absa Group Limited, effective May 30, 2018.

The company underwent a significant rebranding in 2018, introducing a new logo and slogans. In September 2018, Absa opened its first international office in London, and in 2019, it expanded its global presence with an office in New York City.

As of October 2019, Absa Group Limited had total assets in excess of R1.9 trillion, according to the Club of Mozambique. In 2020, ABGL was the majority shareholder of 11 banks across several countries in Africa.

In March 2022, Sello Moloko was appointed Group Chairman, and Arrie Rautenbach took over as CEO, marking the company's fourth CEO in three years. Absa had been without a CEO for 11 months prior to Rautenbach's appointment, following the abrupt resignation of Daniel Mminele.

In August 2022, Barclays Plc sold its remaining stake in Absa, which it had acquired in 2005, selling 7.4 percent of Absa's issued capital for $620 million.

The Absa Group has a diverse group of major shareholders, with the Public Investment Corporation (SA) holding the largest stake at 5.15% as of June 2023.

Public Investment Corporation (SA) is the largest shareholder, followed closely by BlackRock, Inc. (US, UK) and M&G (US, UK), each holding around 4.9% of the company.

BlackRock, Inc. (US, UK) and M&G (US, UK) are both international investment management companies, with a significant presence in the global financial market.

The top five shareholders in the Absa Group, excluding the others category, are:

The remaining 60.66% of the company is held by other shareholders, including institutional investors and individual investors.

Absa Group has faced controversies and issues in the past. In South Africa, banks are required to secure consent from borrowers before securitizing their loans, but Absa was found to have failed to do so in several cases.

In 2014, Absa was unable to provide proof of loan agreements in two separate cases, claiming that the documents had been destroyed in a fire in 2009. The bank presented unsigned blank loan agreements instead, which is highly suspicious.

Absa was also accused of trying to bully clients into submission by threatening legal costs and expenses, and pursuing wrongful summary judgments. This behavior is unacceptable and raises concerns about the bank's treatment of its customers.

In one case, the Liebenbergs accused Absa of inflating the interest rate of their loan and charging additional fees that had never been agreed to. This would have been illegal even if it was written into a signed agreement.

eBank charges were a significant issue in South Africa from 2005 to 2012, with Finweek Bank Charges Reports showing Barclays Africa Group Holdings Limited as the most expensive bank in the country.

Pay-as-you-transact (PAYT) fees increased by 82 percent from 2005 to 2010, making it a challenging time for consumers.

The 2012 Finweek Bank Charges Report ranked Absa's Gold Value Bundle as the cheapest package option among the four banks compared.

Absa's PAYT pricing structure reduced by 25 percent by 2013, leaving it third cheapest in the overall ranking at that time.

This change was a significant improvement for consumers, making it easier for them to manage their bank charges.

In South Africa, banks are required to secure consent from borrowers before securitizing their loans, allowing them to bundle the loan with others and sell it to new owners.

Banks like Absa have faced court rulings against them for mortgage loan misconduct. In 2014, Absa's mortgage loan division was found to have made mistakes in several cases.

Absa was unable to provide proof of loan agreements in court, claiming they had been destroyed in a fire in 2009. Instead, they presented unsigned blank loan agreements.

The bank's lack of documentation led to the withdrawal of a case against the Liebenbergs in the North Gauteng High Court. The Liebenbergs accused Absa of trying to bully them into submission.

Absa was also found to have inflated the interest rate of the loan and charged additional fees that were not agreed to.

Absa Group's financial data reveals a strong presence in Africa, with a significant presence in 12 countries across the continent. The bank's assets under management total R1.46 trillion, making it a major player in the regional market.

The bank's revenue has consistently increased over the years, reaching R45.3 billion in 2020. This growth can be attributed to Absa's strategic expansion into new markets and its focus on digital banking.

Absa's financial data also highlights its commitment to sustainability, with a target to reduce its greenhouse gas emissions by 50% by 2025.

When evaluating a stock's long-term potential, it's essential to consider the consensus among analysts. A consensus of 11 analyst estimates suggests a long-term buy for ABSA Group Limited.

A mean of these analyst's price targets indicates a long-term fair value of 20219c for the stock. This suggests a strong potential for growth in the coming months.

For investors looking to make informed decisions, understanding the consensus among analysts can be a valuable tool. It's not uncommon for multiple analysts to share a similar view on a stock's potential.

Technical analysis is a valuable tool for traders and investors, helping to identify potential trends and patterns in the market. The ABSA Group's FY23 results have led to a sell-off in its share price, which is now testing support at 15970.

A close above the 16220 level could indicate a bullish reversal, while a close below support at 15970 would suggest the reversal has failed. The initial resistance target in this scenario would be 16840.

If the price instead moves to close below the 15970-support level, a downside breakout would be considered, with 15430 as the initial support target. A close above the 16220 level would then suggest the breakout has failed.

The key to successful technical analysis is to carefully monitor the market and be prepared to adjust your strategy as needed.

Access to premium industry data can give you a significant edge in financial analysis. IT Client Prospector provides intelligence on Absa Group Ltd’s likely spend across technology areas enabling you to understand the digital strategy.

Having this information can help you make more informed decisions about investments and resource allocation. Absa Group Ltd’s likely spend across technology areas can be a valuable resource for financial analysis.

Understanding the digital strategy is essential to stay competitive in the market. IT Client Prospector intelligence can help you identify trends and patterns in the financial industry.

By leveraging premium industry data, you can gain a deeper understanding of the financial landscape. Absa Group Ltd’s likely spend across technology areas is just one example of the valuable insights you can gain.

Absa Group is a pan-African banking group that operates in 12 countries across the continent.

The group's operations are primarily focused on retail and business banking, with a presence in both urban and rural areas.

Absa Group's headquarters is located in Johannesburg, South Africa, and the company has a significant presence in the country, with a network of over 900 branches and 5,000 ATMs.

Absa Bank has a significant presence in several African countries through its subsidiaries.

Absa Bank Limited is a 100% subsidiary, indicating full ownership and control. Similarly, Absa Financial Services Limited is also a 100% subsidiary.

In some countries, Absa Bank has a minority stake in local banks, such as National Bank of Commerce Limited in Tanzania, where it holds a 55% stake.

Here's a breakdown of Absa Bank's subsidiaries in various countries:

Accessing publicly disclosed IT services contracts can be a game-changer for businesses looking to improve their competitive bidding processes.

Absa Group Ltd has a wealth of publicly disclosed IT services contracts, including IT outsourcing, business process outsourcing, systems integration, and consulting.

These contracts provide valuable insights into Absa's IT needs and can help businesses tailor their bids to meet those requirements.

By analyzing these contracts, businesses can gain a better understanding of Absa's IT priorities and make more informed decisions when bidding on contracts.

Insights into publicly disclosed IT services contracts can be found for Absa Group Ltd, including details on IT outsourcing and business process outsourcing.

The bank's headquarters are located on the 7th Floor of Absa Towers West, 15 Troye Street, Johannesburg, South Africa.

The geographic coordinates of the bank's headquarters are 26°12'23.0"S 28°02'57.0"E (Latitude:-26.206389; Longitude:28.049167).

If you're planning a visit, note that the bank's headquarters are situated in Johannesburg, a city in the country's Gauteng province.

The Absa Towers West building is a notable landmark in the city's financial district.

Here's a brief overview of the bank's location:

Johannesburg is a major economic hub in South Africa, making it an ideal location for a bank's headquarters.

Mozambique is home to Absa Bank Mozambique, which offers a wide range of financial services.

The bank provides retail, business, corporate, and investment banking services, making it a one-stop-shop for various financial needs.

Absa Bank Mozambique also offers wealth management solutions, helping clients manage their finances effectively.

The bank has a strong focus on digital banking, providing platforms like Absa Online and Absa Internet Banking to enhance customer convenience.

Here are some of the key services offered by Absa Bank Mozambique:

The governance of Absa Group is overseen by a seven-person board of directors. The board is led by chairperson Sello Moloko, one of the non-executive directors.

The managing director and CEO of Absa Group is Arrie Rautenbach, who is responsible for the overall direction of the company.

The board of directors plays a crucial role in shaping the future of Absa Group, ensuring that the company operates in a responsible and sustainable manner.

The Absa Group operates in a highly competitive market, with a presence in 20 countries across Africa. The company faces competition from other major banks and financial institutions on the continent.

Absa Group's largest competitor in South Africa is Standard Bank, which has a strong presence in the country's financial sector. Absa Group also competes with other major banks such as First National Bank and Nedbank.

The Absa Group has a significant market share in several African countries, including South Africa, Botswana, Ghana, Kenya, and Tanzania.