- Loud, Quiet, or Contextual? What European and African Consumer Behaviour Reveals About Status, History and Power
- Property Investment in Uncertain Times: How to Maximise Returns in a Shifting Economy - Eva August, CEO, Century 21
- Railway infrastructure is one of the solutions to Africa’s Trade Expansion - Caroline Trefault, MSC’s Intermodal Africa Manager
- The Precision Transition: Designing Africa’s power systems for reality, not abstraction
- Three weeks of conflict have tested the logic behind a rand-only portfolio - Harry Scherzer, CEO of Future Forex
ICBC Standard Bank May Need $200 Million Capital to Back Growth
JOHANNESBURG(Capital Markets in Africa): Standard Bank Group Ltd. said its London-based venture with Industrial & Commercial Bank of China Ltd. might need a $200 million capital injection over the next 12 to 18 months, of which its share will be $80 million.
ICBC Standard Bank’s business plan indicates the need for the cash based on growth in risk-weighted assets, Johannesburg-based Standard Bank said in a statement on Thursday. Beijing-based ICBC owns 60 percent of the venture, which specializes in global commodities, fixed-income, currencies and equities, and distributing African risk.
The business, also known as ICBCS, reported a $15 million loss in 2018 after declining global appetite for emerging-market risk and reduced investment flows hit its trading business, offsetting a recovery of $38 million relating to previous write-offs in aluminum.
“ICBCS’s ability to deliver sustainable profits is dependent on its ability to continue to integrate into, and leverage, ICBC’s extensive client base,” Standard Bank said. ICBCS did not need additional capital in 2018 “on the back of lower than expected risk-weighted asset growth.”
Source: Bloomberg Business News