FirstRand, South Africa Challenges U.K. Lenders With Aldermore Buy

FirstRand, South Africa Challenges U.K. Lenders With Aldermore Buy

JOHANNESBURG (Capital Markets in Africa) – Africa’s largest lender by market value plans to take on Britain’s biggest banks with the takeover of Aldermore Group Plc as growth in its home market stutters. FirstRand Ltd. said on Monday it agreed to buy all of Aldermore after winning the backing of the U.K. lender’s board and its largest shareholder. The offer, which values Aldermore at about 1.1 billion pounds ($1.4 billion), will help the Johannesburg-based company diversify away from…

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Moody’s Sees Angola as No-Go Zone for U.S. Banks as Risks Remain

Moody’s Sees Angola as No-Go Zone for U.S. Banks as Risks Remain

LUANDA (Capital Markets in Africa) – Angola is still a long way off from tempting U.S. banks into resuming dollar-clearing services despite making progress in combating money laundering, according to Moody’s Investors Service. “American banks are unlikely to come back to Angola anytime soon,” Akin Majekodunmi, a London-based senior analyst at Moody’s, said in an interview on Wednesday. “This industry, if you like, doesn’t make much commercial sense for them anymore.” Bank of America Corp….

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Standard Bank’s First-Half Profit Rises 14% as Impairments Drop

Standard Bank’s First-Half Profit Rises 14% as Impairments Drop

JOHANNESBURG (Capital Markets in Africa) – Standard Bank Group Ltd., Africa’s largest lender by assets, said first-half profit rose 14 percent after impairments dropped and costs were contained. Net income climbed to 12.3 billion rand ($937 million) from 10.8 billion rand a year earlier, the Johannesburg-based lender said in a statement on Thursday. Earnings per share excluding one-time items, known locally as headline earnings, advanced 11 percent to 7.56 rand beating the 7.44 rand median estimate of…

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Moody’s: Angolan Banks FAQ answers investors’ questions on correspondent banking pullback

Moody’s: Angolan Banks FAQ answers investors’ questions on correspondent banking pullback

London (Capital Markets in Africa) – In a new report Moody’s Investors Service answers investors’ questions about the credit implications for Angolan Banks, such as Banco Angolano de Investimentos, S.A. (BAI, BCA b3, LT local currency bank deposits B1, Negative), of the recent reduction in correspondent banking services. The report, “Banco Angolano de Investimentos, S.A. (BAI) Case Study: Angolan banks face challenges meeting dollar obligations following loss of correspondent bank relationships,” is now available on…

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Barclays Sells Zimbabwe Bank to Malawi’s First Merchant

Barclays Sells Zimbabwe Bank to Malawi’s First Merchant

JOHANNESBURG (Capital Markets in Africa) – Barclays has announced the sale of its Zimbabwe bank to Malawi-listed First Merchant Bank on Friday as the British lender continues its exit from Africa. In March Barclays announced it was in talks on the sale of its stake in Barclays Bank of Zimbabwe as part of a broader exit from Africa to refocus on the United States and Britain. Barclays said the deal would remove 292 million pounds ($375.69 million)…

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Mauritian Banks Seen as Haven as Politics And Oil Roil Peers

Mauritian Banks Seen as Haven as Politics And Oil Roil Peers

PORT LOUIS (Capital Markets in Africa) – Mauritian banks are becoming beacons of growth and stability in sub-Saharan Africa. Unscathed by the vagaries of the oil price and unhindered by the political battles that have roiled some of their continental peers, the Indian Ocean island’s lenders have been bolstered by an economy growing faster than many of the mainland countries. The central bank expects the Mauritian economy to expand as much as 4 percent this year, compared with…

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Kenyan Central Bank Says Lenders Face New Era of Smaller Profits

Kenyan Central Bank Says Lenders Face New Era of Smaller Profits

NAIROBI (Capital Markets in Africa) – Kenyan lenders must adjust their business models to adapt to a new era of lower profits as interest-rate caps curb investor returns, Central Bank of Kenya Governor Patrick Njoroge said. Return on equity in the Kenyan banking industry declined to 13.6 percent in March from 18.2 percent in June, Njoroge told reporters Tuesday in the capital, Nairobi. For the country’s biggest lenders, the drop was more severe, slumping to 23 percent…

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