African Bank Limited

African Bank Limited, is a retail bank in South Africa, that offers financial products and services. The Bank is licensed as a "locally controlled bank" by the South African Reserve Bank (SARB).[2] Headquartered in Midrand, South Africa, the bank has a countrywide branch distribution network in addition to a full digital channel offering; as well as sales, collections and customer service Contact Centres.[3]

African Bank
TypePrivate
IndustryFinancial services
FoundedJuly 31, 1975 (1975-07-31)
Headquarters59 16th Road, Midrand
Johannesburg, South Africa
Key people
Thabo Dloti
Chairman[1]
Kennedy Bungane
Chief Executive Officer[1]
ProductsBanking, Loans, Checking, Savings, Investments, Debit Cards, Credit Cards, Personal Loans
Revenue Aftertax: ZAR:1.154 billion (USD:64.8 million) (2019)[1]
Total assetsZAR:28,881,000,000 (USD:1,622,250,000) (2019)[1]
Number of employees
3,886 (2019)[1]
WebsiteHomepage

Overview

As of 30 September 2019, African Bank Limited had total assets worth ZAR:28.881 billion, with shareholders' equity of ZAR:10.659 billion. At that time the bank, its subsidiaries and affiliates employed 3,886 people.[1]

History

The original African Bank Limited, was established on 31 July 1975, and was a subsidiary of African Bank Investments Limited, then a bank-controlling company listed on the Johannesburg Stock Exchange.[4] On 10 August 2014, the original African Bank Limited was placed under curatorship by the South African Reserve Bank, under the terms of the South African Banks Act, Act 94 of 1990.[4]

The SARB announced a restructuring proposal, which received support from a consortium of six South African banks and the Public Investment Corporation. A new banking group, African Bank Holdings Limited was created to assume the viable assets and some of the liabilities of the old bank.[4][5] The legacy bank and the compromised part of the business was renamed Residual Debt Services Limited (RDS). RDS surrendered its banking license on 4 April 2014.[4][6]

Thomas Winterboer was appointed as curator to implement the restructuring proposal and manage the affairs of the Bank, subject to the supervision of the Registrar of Banks. On 4 April 2016, the new African Bank Limited opened its doors as the new entity, with the required licenses and registrations required by the various regulators in place.[7][8]

In May 2022, African Bank announced a deal to acquire Grindrod Bank in addition to their holding company Grindrod Financial Holdings. African Bank stated that the acquisition worth R1.5 billion, will aid the introduction of business banking into their services since Grindrod Bank has 26 years of specialisation in the corporate and investment banking sector.[9]

Shareholding

As of September 2019, the shareholding in the stock of African Bank Limited, was as depicted in the table below.[1]

African Bank Limited Stock Ownership
RankName of OwnerPercentage Ownership
1South African Reserve Bank (SARB)
50.00
2Government Employees Pension Fund (GEPF)
25.00
3FirstRand Bank Limited
7.00
4Standard Bank of South Africa Limited
6.00
5Absa Trading and Investment Solutions Proprietary Limited
5.00
6Nedbank Limited
4.00
7Investec Bank Limited
2.00
8Capitec Bank Limited
1.00
Total
100.00

Leadership as of September 2021

The chairperson of the 12-person board of directors is Thabo Dloti, a non-executive director. The chief executive officer is Kennedy Bungane.[1]

See also

References
  1. African Bank Limited (30 November 2019). "African Bank Holdings Limited Annual Integrated Report 2019" (PDF). Midrand, South Africa: African Bank Limited. Retrieved 21 December 2020.
  2. SARB (21 December 2020). "List of Registered Banks And Representative Offices: Locally Controlled Banks". Pretoria, South Africa: South African Reserve Bank (SARB). Retrieved 21 December 2020.
  3. African Bank Limited (21 December 2020). "African Bank Limited Branch Locator". Midrand, South Africa: African Bank Limited. Retrieved 21 December 2020.
  4. African Bank Limited (21 December 2020). "Background To African Bank Limited". Midrand, South Africa: African Bank Limited. Retrieved 21 December 2020.
  5. Bloomberg (December 2020). "Profile of African Bank Holdings Limited". Bloomberg. Retrieved 21 December 2020.
  6. Bloomberg (December 2020). "Company Profile of Residual Debt Services Limited". Bloomberg. Retrieved 21 December 2020.
  7. PWC South Africa (4 April 2016). "Curator of African Bank – Tom Winterboer - announces the launch of Good Bank". Johannesburg: PricewaterhouseCoopers South Africa. Retrieved 22 December 2020.
  8. Lynley Donnelly (17 September 2015). "African Bank 'referee' a major player". Mail & Guardian. Johannesburg. Retrieved 22 December 2020.
  9. "African Bank to buy Grindrod for R1.5 billion as it plans move into business banking". Business Tech. 26 May 2022. Retrieved 31 May 2022.{{cite web}}: CS1 maint: url-status (link)
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