Standard Bank says it needs to pump R1.1bn into ICBC venture
ICBC Standard Bank made a loss in 2018 because of declining emerging-market risk appetite
Standard Bank will probably need to inject about $80m (R1.1bn) into ICBC Standard Bank in the next 12-18 months, Africa’s largest lender by assets said on Thursday. In the year ended December, ICBC Standard Bank recorded a loss of $14.9m as declining emerging-market risk appetite and flows dented the trading business, said Standard Bank, which owns 40% of the joint venture with China’s ICBC. Standard Bank’s share of those losses equated to R74m. “ICBC Standard Bank’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. While the joint venture did not need additional capital in 2018, its business plan will probably required a capital injection of about $200m in the next 12-18 months, Standard Bank said. The group’s share of that would be $80m. Standard Bank said on Thursday its headline earnings in the year ended December rose 6% to R27.9bn, thanks to growth in the retail ban...
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