Absa regains some market share in retail banking
Absa says it expects to be able to maintain its momentum in lending, despite the entrance of new players, such as TymeBank, Bank Zero and Discovery Bank
After losing ground while under the control of UK lender Barclays, Absa says momentum has returned to its retail banking division. “We started to regain market share in retail with a strong fourth quarter,” Jason Quinn, Absa’s group financial director, said on Monday as the company said it grew deposits in its home market 11% to R208bn in the year ended December. “Regaining leadership in our largest franchise, retail and business banking in SA, is a group priority,” he said. Absa lost market share in that segment under the watch of Barclays, which bought the lender in 2005 and then imposed operational constraints that ultimately cost the South African unit its market-leader position in home loans and credit cards. Barclays, which has sold down its majority stake, had restricted its loan book in line with its own strategy to keep risk-weighted asset growth in check. “We expect to be able to maintain our momentum in lending,” Quinn said. This was despite the entrance of new players, s...
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