By Devon Maylie
JOHANNESBURG--Standard Chartered (STAN.LN) plans to double
revenue from its business in Africa within five years, it said
Thursday.
The bank, which operates in 15 African countries, said income in
2012 from the Africa business was $1.6 billion, up 15% from the
year before, with the bulk of that from its wholesale bank. It said
its income from 10 of these countries saw double-digit income
growth, including Kenya, where income rose 34% on the year, South
Africa (up 28%), Ghana (up 20%), Nigeria (up 13%).
Standard Bank will invest $100 million in new branches over the
next three years across Africa, add more staff and further develop
mobile payment technology. It also said it will purchase the South
African custody and trustee business of ABSA Group Ltd. (ASA.JO)
for an undisclosed amount.
"Africa is an important strategic opportunity for the bank and
for our clients, offering excellent economic growth and
increasingly strong trade links with markets in Asia and the Middle
East," said Diana Layfield, chief executive officer at the bank for
the Africa region.
Standard Chartered isn't the only global bank seeking to expand
on the continent. J.P. Morgan Chase & Co. (JPM) has also been
increasing its African presence and now has offices in Nigeria,
Ghana and Kenya.
Private equity money has also followed with Carlyle Group LP
(CG) and Blackstone Group LP (BX) recently closing deals to try and
tap the growing consumer market amid a mineral resource and energy
boom. The U.K.'s Barclays PLC (BCS) and ABSA are also seeking to
further integrate their business in Africa.
However, these moves don't come without risks. Standard
Chartered and Barclays have operations in Zimbabwe and both are
targets of a government indigenization law which says foreign
companies must cede control of 51% shareholdings to local
entities.
Write to Devon Maylie at devon.maylie@dowjones.com
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