Standard Bank

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"Standard Bank of South Africa" redirects here. For the bank known by that name until 1962, see Standard Bank (historic).
This article is about the present South African-based bank. For the historic British bank, now part of Standard Chartered, see Standard Bank (historic).
The Standard Bank
of South Africa Limited
Type Public
Traded as JSE: SBK
Industry Banking
Founded 1862 (1862)[1]
Headquarters Johannesburg, South Africa
Area served Southern Africa, Africa
Key people Fred Phaswana
Chairman
Sim Tshabalala
Joint Chief Executive
Ben Kruger
Joint Chief Executive
Products Commercial banking
Investment banking
Investment management
Revenue Decrease US$ 16,6 Billion (2010)
Net income Increase US$ 1,6 Billion (2010)
Total assets Increase US$ 201,9 Billion (2010)
Employees 53,350
Website standardbank.com

The Standard Bank of South Africa Limited is one of South Africa's largest financial services groups. It operates in 32 countries around the world, including 19 in Africa.

History

The bank was formed in 1863 as a South African subsidiary of the British overseas bank Standard Bank, under the name Standard Bank of South Africa.

The British bank's history in South Africa dated back to 1862, when a group of businessmen led by John Paterson[2] formed the bank in London, initially under the name Standard Bank of British South Africa. The bank started operations in 1863 in Port Elizabeth, South Africa, and soon after opening it merged with several other banks including the Commercial Bank of Port Elizabeth, the Colesberg Bank, the British Kaffrarian Bank and the Fauresmith Bank.

It was prominent in financing and development of the diamond fields of Kimberley in 1867. The word "British" was dropped from the title in 1883. When gold was discovered on the Witwatersrand, the bank expanded northwards and on 11 October 1886 the bank started doing business in a tent at Ferreira's Camp (later to be called Johannesburg), thus becoming the first bank to open a branch on the Witwatersrand gold fields. On 1 November 1901 a second branch was opened in Eloff Street of Johannesburg.

Standard Bank in Adderley St, Cape Town

In 1920 the Standard Bank bought out the African Banking Corporation.[3]

Since the 1920s the UK bank had an established sports ground at Elmers End in Beckenham Kent. Until 1962 the British bank was formally known as the Standard Bank of South Africa, although by then its operations spread across Africa. When the South African operations were formed into a subsidiary in 1962, the parent changed its name to Standard Bank Limited, and the South African subsidiary took its parent's previous name.

The parent bank merged in 1969 with Chartered Bank of India, Australia and China and the combined bank became known as Standard Chartered Bank. The Standard Bank Investment Corporation (now Standard Bank Group) was established as the holding company of the South African bank. Standard Chartered sold its remaining 39% stake in Standard Bank Group in 1987, transferring complete ownership of the holding company to South African investors.

It was announced at the end of July 2013 that Standard Bank was in talks to sell its markets business in London to the Industrial and Commercial Bank of China for more than $500 million.[4] In November 2013, Standard Bank confirmed it was in talks to sell a controlling stake in its London-based global markets business.[5]

Recent expansion and acquisitions

Africa

Uganda

In 2002, Standard Bank acquired 90% of Uganda Commercial Bank, the largest commercial bank in Uganda at that time, making Standard Bank a major actor in the banking sector of that East African country. They renamed the bank Stanbic Bank (Uganda) Limited. As of December 2012, Stanbic Bank (Uganda) was still Uganda's largest commercial bank with approximately 20% of all bank assets and about 18% of all bank branches in the country.[6] The stock of Stanbic Bank (Uganda) Limited is traded on the Uganda Securities Exchange (USE) under the symbol SBU. Standard Bank Group maintains approximately 80% shareholding.[7]

Nigeria

On 21 August 2007 Standard Bank Group acquired controlling interest in IBTC Chartered Bank. This gave subsidiary StanbicIBTC Bank Nigeria Limited significant presence in the Nigerian market.

Mozambique

Standard Bank SARL ("SBM") has a long history and is considered one of the leaders of the local market. Already active in Mozambique for 118 years. The network's Standard Bank is one of the largest in the country. Covers all major towns and cities of Mozambique, with 44 branches.[8]

Côte d'Ivoire

In February 2014, Standard Bank Group is expected to open a representative office in Abidjan, Ivory Coast, marking the entry of the banking conglomerate into Francophone West Africa. Ivory Coast becomes the 19th African country where Standard Bank maintains a subsidiary.[9]

International

Argentina

In 2006, Standard Bank bought BankBoston Argentina expanding its operations into this country. In 2012, ICBC acquired 80% of its shares. Rebranding occurred on April 2013.

Jersey

Standard Bank has operations in Jersey.

Standard Bank in Jersey

Turkey

Also in August 2007, Standard Bank Group acquired a 67% share of the Turkish bank Dundas Ünlü Securities and now operates in Turkey under the name of Standard Ünlü. The Bank sold it s shares down to 25% in April 2012 and the Turkish sub was renamed Ünlü & Co. afterwards.

Russia

On 6 March 2009, Standard Bank announced plans to acquire 33% of Russia's second biggest investment bank, Troika. Troika, which is Russia's oldest brokerage, will acquire Standard Bank's current Russian banking operation, and will in addition receive cash of $200-million in the form of a 'convertible loan'. Two executives of Standard Bank will join Troika's six-member board.

Investments in Standard Bank

Loan Deal with Chinese banks

On 11 September 2009 Industrial and Commercial Bank of China, Industrial and Commercial Bank of China (Macau), Bank of China, China Development Bank, China CITIC Bank initiated $1Billion club loan to Standard Bank.[10]

ICBC Deal

In October 2007 the Industrial and Commercial Bank of China acquired a stake of about 20% in Standard Bank for US$5.5bn. Half the stake came from ICBC acquiring existing shares and half from new shares. ICBC will also get two seats on the board of directors.

Bank Charges

In 2005 Standard Bank was rated as having the lowest bank charges in South Africa. By 2010 that had changed to the extent that Standard Bank was rated by Finweek’s review of SA bank charges as having amongst the highest bank charges in the country.[11] A report by Afriforum confirmed Standard Bank's position as having the highest bank charges in the country along with Absa Bank.[12]

See also

Bibliography

External links

Wikimedia Commons has media related to Standard Bank.

References

  1. ↑ Amphlett, George Thomas (1914). "I - Establishment of the Standard Bank of British South Africa, now called the Standard Bank of South Africa". History of the Standard Bank of South Africa ltd., 1862-1913. Glasgow, Printed by R. Maclehose. p. 1. 
  2. ↑ Amphlett, George Thomas (1914). "I - Establishment of the Standard Bank of British South Africa, now called the Standard Bank of South Africa". History of the Standard Bank of South Africa ltd., 1862-1913. Glasgow, Printed by R. Maclehose. p. 3. 
  3. ↑ Terry, Carolyn. 1978. The Desert Bankers: The Story of the Standard Bank in South West Africa. Cape Town: W.J. Flesch & Partners.
  4. ↑ Standard Bank to sell London business to ICBC for over $500 mln, International: Reuters, 2013 
  5. ↑ Standard Bank says in talks to sell London trading unit, International: Reuters, 2013 
  6. ↑ Assets & Market Share Among Commercial Banks In Uganda
  7. ↑ Uganda Securities Exchange
  8. ↑ About Standard Bank Mozambique
  9. ↑ Standard Bank Expands Its Africa Footprint
  10. ↑ Standard Bank Signs Loan Deal With Chinese Banks
  11. ↑ Fin24.com reporter (27 September 2010). "SA’s most expensive bank". Fin24.com. Retrieved 9 February 2011. 
  12. ↑ "Afriforum: Standard Bank and Absa is South Africa's most expensive banks". Afriforum. 3 November 2010. Retrieved 9 February 2011. 
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