( 3 minutes read)
· Three years after initiating the process of separation, Absa and Barclays are now almost become separate entities.
· The Absa banking group said barring a few issues to be sorted out, the bank now owns and controls all its systems and infrastructure across the continent.
· The British based Barclays contributed R12.6 billion in 2017 towards the separation programme. This enabled Absa to finance the migration of its IT systems and brand projects to South Africa
The Absa banking group said barring a few issues to be sorted out, the bank now owns and controls all its systems and infrastructure across
the continent. The British based Barclays contributed R12.6 billion in 2017 towards the separation programme.This enabled Absa to finance the migration of its IT systems and brand projects to South Africa
Both banks are upbeat about the separation. Absa says that the separation has enabled the bank to focus on Africa and to aggressively
grow its clientele list in Africa, which would not have been possible in the merged entity. It is now an independent African bank and can chase its own course and focus more on the continent for its organic growth.
The separation started in 2017. Barclays in 2017 was a majority shareholder in Absa at 62.3% and has decided to become a minority shareholder with a reduced exposure of 14.9%.The relationship between the two banks continued for 11 years when the British bank acquired
55.5% of Absa Group in 2005. During the three years of its separation process, which is almost complete now, the two banks sorted out
separation of some of the projects that were operated together. A maze of issues had to be hammered with reconciliation and in the spirit of give and take.
