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BusinessEconomyFinance & ServicesINVESTMENTSanlamSouth Africa

Sanlam and Absa officially partner to form South Africa’s largest black-owned asset manager

by Radarr Africa
written by Radarr Africa

Sanlam and Absa have officially combined their investment businesses to form South Africa’s largest black-owned asset manager. The two companies announced in October 2021 that they were joining forces to create an asset management firm second only to Ninety One in terms of size.

The new company, to be born out of marrying Sanlam Investments and Absa Investments – which comprised Absa Asset Management, Absa Alternative Asset Management, Absa Fund Managers and Absa Multi-Management – will have assets of more than R1 trillion.

On Thursday, the two firms said they’ve now met all the conditions, allowing them to officially launch the new asset management venture, Sanlam Investment Holdings Proprietary Limited (SIH), on 1 December.

The two combined all their investment management businesses in South Africa. Absa Investments got a stake in SIH. Absa also entered into a 10-year distribution agreement with SIH. This means that the new asset management firm will use both Sanlam and distribution networks, thus reaching significantly more clients than they ever could individually. They also said that doing it as a team of two financial giants will help them bring a more holistic range of investment solutions to the market.

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“Sanlam and Absa clients will gain from the enhanced investment offering. This partnership will allow us to deliver investment solutions that sustain future generations,” said Sanlam Investment Group CEO, Carl Roothman.

He believes that the scale of SIH will position the group as the preferred investment solutions provider in South Africa.

SOURCE: News 24

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BusinessINVESTMENTKenya NewsReal Estate

Musalia Mudavadi reveals Absa bank and First Assurance stake in Sh4bn wealth

by Radarr Africa
written by Radarr Africa

Properties in upmarket Riverside Estate, shares in Absa Bank and First Assurance Company Limited account for the largest share of nominee for Prime Cabinet Secretary Musalia Mudavadi’s net worth of Sh4.1 billion.

The Riverside Stables is worth Sh1 billion, according to disclosures made by Mr Mudavadi to the Committee on Appointments, which vetted him yesterday.

He also owns rental office blocks worth Sh870 million through a firm known as Tritone Investments, underlining his heavy investments in property. The former Vice-President also has Sh200 million shares in Exclusive Air Services Ltd—which leases helicopters.

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Kenya’s business magnates, politicians and new millionaires have in recent years taken to flying as the preferred mode of transport – expanding the market for leasing and private ownership of planes.

Aside from the heavy investments in real estate, Mr Mudavadi disclosed his shareholding in First Assurance Company worth Sh440 million and another investment of Sh545 million in Absa Bank.

“If I take my investment in shares in some companies and also some properties I own, I would put my net worth at about Sh4 billion,” Mr Mudavadi disclosed.

“My sources of income are rental income, dividends where I have shareholdings and also interest and of course other expenses that come from the farm.”

He disclosed ownership of high-end cars worth Sh44 million as well as shares in investment firms—Jodeci Investment (Sh120 million) and Malulu Land and Developments (Sh250 million).

Mr Mudavadi was the first Cabinet Secretary nominee to appear before the 15-member National Assembly Committee to be vetted for the position of Prime Cabinet Secretary.

The Amani National Congress (AANC) party leader was nominated by President William Ruto as one of his Cabinet Secretaries following the agreement that his party and UDA signed before the August election.

Wealth declaration has become a key consideration in the fight against corruption amid concerns that public officials were turning into instant millionaires overnight.

Mr Mudavadi had a significant shareholding in First Assurance Bank before he and other investors sold a 63.3 percent stake in the insurance firm to Absa Group (then Johannesburg-based Barclays Africa) for Sh2.2 billion in 2015.

First Assurance, which started off in Kenya as Prudential Assurance Company in 1930, offered group life, medical and general insurance. The company’s shareholding structure had remained a well-guarded secret, the only information available being that it is owned by two investment vehicles – First Assurance Investment and Syndicate Nominees.

Yesterday, Mr Mudavadi disclosed that he has investments worth Sh255 million in First Assurance through First Assurance Investment. He also owns another Sh185 million shares in the insurance firm through Syndicate Nominees.

Mr Mudavadi, who first became a Cabinet minister in 1989 at 29 years, owns the Absa investment through First Assurance Investment and Syndicate Nominees. First Assurance Investment has other investments worth Sh650 million.

The former Vice-President also distanced himself from the Sh1.3 billion Anglo-Leasing graft scandal and the Sh283 million cemetery land fraud at the Nairobi City Council, arguing he was not involved.

Mr Mudavadi’s wealth dwarfs those of Defence Cabinet nominee Aden Duale (Sh871 million), Foreign Affairs nominee Alfred Mutua (Sh420) million and Attorney-General nominee Justin Muturi ( Sh700 million).

Mr Duale told the vetting team that his net worth is Sh851 million, including the assets. “My current and anticipated sources of income include rentals and others which is about Sh10 million annually,” he said.

Mr Muturi disclosed that his Sh700 million net worth is derived from farming, legal consultancies and occasional rewards. His disclosure, however, shows a big margin in his net worth from the Sh300 million he declared last year when making public his interest to contest for the presidential seat.

Dr Mutua, the retired Machakos governor, told MPs that his net worth of Sh420 million includes a hotel in Machakos, which was built through proceeds of loan. “Before I became a governor, my net worth was slightly over Sh200 million,” Dr Mutua said.

Suna MP Junet Mohamed sought to know whether the A & L Hotel in Machakos is owned by Dr Mutua whom he accused of failing to provide a breakdown of his wealth as required.

Wealth declaration for those seeking top public offices is anchored in the Constitution as a tool in the fight against corruption. The full financial disclosure is meant to allow the Ethics and Anti-Corruption Commission (EACC) detect and prevent corruption when top public servants are serving in office.

Alice Wahome, the nominee for Water and Irrigation, put her financial net worth at Sh218 million. “This is the value of properties between myself and my assets. My current and anticipated sources of income is a salary from Parliament, legal practicing allowance of Sh100,000 from my law firm and Sh500,000 a month from my rental properties. I have no tenants in the properties currently due to Covid-19,” Ms Wahome said

SOURCE: Business daily

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Information TechnologySouthern AfricaTechnology

Samsung sets to launch all-in-one digital wallet in South Africa.

by Radarr Africa
written by Radarr Africa

The all-in-one digital wallet app Samsung Wallet will be rolled out to 13 new countries by the end of 2022, including South Africa.

First launched in June 2022 Launched in June 2022, Samsung Wallet merges the features of the company’s digital payment app Samsung Pay and its password manager, Samsung Pass.

Samsung Pay is already supported by most major banks in South Africa — including Absa, Capitec, Discovery Bank, FNB,  Nedbank, and Standard Bank.

It allows users to load their bank and loyalty cards on the app and make tap-and-go payments using their Galaxy smartphone or smartwatch at NFC-enabled payment terminals.

Samsung Pass is the company’s password manager, which stores passwords and allows for quickly logging into apps and services on devices where the user is logged into their Samsung account.

Samsung Wallet is secured with the Samsung Knox security platform, which supports fingerprint recognition and encryption to keep data protected.

Samsung also said that “particularly sensitive documents” were stored in an isolated environment, offering an extra layer of protection against potential digital and physical hacking attempts.

In addition to the bank cards supported on Samsung Pay, Wallet lets users add their digital home and car keys, and digital assets like cryptocurrency.

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The app is also helpful for those who regularly travel, whether by public transport or their own vehicle.

Samsung Wallets supports adding digital versions of your travel pass like a boarding pass or bus ticket and driver’s licenses and ID cards.

The latter could be useful to South Africans, as transport minister Fikile Mbalula recently said his department was readying a digital driver’s license card for rollout within the next three years.

It will follow the launch of a new, modernised physical licence card set to roll out towards the end of 2023.

In addition to South Africa, Samsung Wallet will be rolled out to the following countries before the end of the year:

  • Bahrain
  • Denmark
  • Finland
  • Kazahkstan
  • Kuwait
  • Norway
  • Oman
  • Qatar
  • Sweden
  • Switzerland
  • Vietnam
  • United Arab Emirates (UAE)

Source: My Broadband

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Absa reports profit jumps by 30% in the sixth months to June 2022.
BusinessSouthern Africa

Absa reports profit jumps by 30% in the sixth months to June 2022.

by Radarr Africa
written by Radarr Africa

Absa reported its “strongest half yet” in the six months to June 2022. The bank, which has been trying to claw back market share it lost under Barclays’ rule, posted a 30% growth in its headline earnings.

Its half-year dividend has more than doubled to 650c a share. 

Absa’s biggest business unit, the retail and business banking division (RBB), grew its headline earnings by 34% to R5.6 billion, contributing 57% of the group’s earnings during this half. Absa’s Corporate and Investment Bank grew its headline earnings by 5% to R4.28 billion.

Absa Group CEO, Arrie Rautenbach, said the bank continued to gain market share in targeted areas such as home loans. But it lost some of its primary banked clients, reducing that number to 2.7 million customers. These are people who deposit their salaries with Absa, and most of that loss was in the entry-level market. Rautenbach said the group has a strategy to grow its primary-banked client base again.

“While we have gained momentum with all middle market and affluent customers, we aim to grow our entry-level and inclusive banking base as well as youth and SMEs,” said Rautenbach.

Gaining lending market share

One area where Absa has been growing its market consistently in the past few years is lending. In the six months to the end of June 2022, the group grew its total loans and advances by 11%.

“Our retail market share has increased slightly to just over 22%, with continued momentum in secured lending and improved production in unsecured [loans],” said Absa CFO Jason Quinn.

RBB’s loans and advances to customers rose 9% to R684 billion. Instalment credit agreements went up 10%. Home loans increased by 8%, personal loans grew by 10%, and credit cards rose 8%.

Gross loans to customers in Absa Regional Operations (ARO), which covers the rest of the continent, grew by 17%.

In South Africa, RBB grew loans and advances by 7% to R922 billion. Home loans led the pack, growing by 9% in SA. This grew Absa’s home loans market share in SA to 23.7%, as the average loan values and registrations both increased by 7%.

Absa’s personal loan advances are back to 2019 levels, growing 8% in the six months to the end of June. But Quinn said these loans remain “a small portion” of Absa’s retail lending, and its market share in that area is around 10%.

Absa also grew its retail deposits in SA by 7%, maintaining its market share of 22%. Its investment deposits rose 8%.

CIB South Africa grew its loans by 5%, while CIB ARO recorded 18% growth in its advances. CIB SA’s deposits rose by 1%, and CIB ARO recorded a 17% growth in that area.

Rautenbach said these numbers show that the strategy that Absa launched in 2018 is now paying off. He said the first phase of that strategy was turning around the bank. This has been achieved. Absa has now moved to the next phase: “smart growth”.

“I feel the group is in a very positive space,” he said. “We’ve delivered… We are now moving to the outperformance phase of our execution plan,” he added.

Rautenbach believes Absa is “on the front foot again” and is well-positioned to weather the tough operating conditions that come with the rising cost of living affecting its customers.

Absa’s share price rose by 0.7% to R187.38 on Monday morning.

Source: News 24

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Banking, Finance & InvestmentBusinessEconomySouthern Africa

Absa expects an increase of 20% in earnings per share

by Radarr Africa
written by Radarr Africa

Absa is expecting a leap of more than 20% in its headline earnings per share for the six months to end June, against the first half of 2021.

This was included in a statement on the banking group’s trading update for the five months ended 31 May, which reflected low double digit growth year-on-year. In line with JSE regulations, it must notify shareholders as soon as there is reasonable certainty that results will differ by more than 20%, even if they cannot give specifics regarding the range. Absa did not give detailed information on its estimate.

It said there was high single digit growth in gross customer loans over the period, largely due to improved growth in corporate and investment banking, with retail and business banking also growing high single digits, driven by home loans and vehicle and asset finance.

Customer deposit growth, on the other hand slowed to mid-single digits, with solid retail and business banking growth partially offset by lower corporate and investment banking deposits due to “a large reduction in low-margin national government deposits”.

Its return on equity for the period improved year-on-year to almost 17%. Based on this performance for the period, Absa said it expects revenue for the first half of 2022 to increase by low teens year-on-year, and low double digit net interest income growth, benefiting from rising interest rates.

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“Operating expenses are expected to increase by high single digits year-on-year, reflecting performance costs, plus continued growth in marketing and technology investments.”

Absa expects its credit impairments to increase year-on-year, resulting in a credit loss ratio in the upper half of its through the cycle range, versus 88 basis points in the first half of 2021. 

“Given the uncertain macroeconomic outlook, our loan coverage remains strong, with conservative forward-looking provisions.”

Source: News 24

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