Banking giant Standard Bank Group has reiterated its desire to sell its 40% stake in the UK-based joint-venture with the Industrial and Commercial Bank of China (ICBC). The partnership was forged in 2015 when ICBC acquired a controlling interest in Standard Bank’s London-based global markets business.
Standard Bank had previously indicated that it was working towards a near-term exit from the joint venture with ICBC but timing was dependent on discussions and agreements between the two financial institutions. As a result, Standard Bank will hold onto ICBCS as part of its vast portfolio.
At the time of the formation of the joint venture, Standard Bank indicated that it would eventually sell its remaining shareholding. According to the group, the intention remains intact but the timelines are still under discussion.
Arno Daehnke, group chief finance and value management officer, confirmed there was interest in the assets, but no immediate exit was on the cards despite a long-standing intention to sell.
“In the past we sort of indicated an exit, a near-term exit. I think it’s quite clear now [that] we are going to be holding on to these assets for the medium term and in our plan arising to 2028, we keep ICBC as part of our group earnings make up,” said Daehnke.
The business plays a key role in facilitating cross-border transactions, particularly by connecting African corporates, institutions and governments to global pools of capital.
However, the bank reaffirmed its intention to exit its remaining stake in the ICBCS as the group zooms focus into the African market.
“Standard Bank Group’s intention remains to exit its 40% stake in ICBCS. The timing thereof is subject to discussions and agreement between ICBC and the group. As a result, our plan assumes that we hold the stake until 2028,” the bank said in response to follow up questions from Sunday World.
Sim Tshabalala, Standard Bank Group CEO, emphasised at the Capital Markets Day this week that the Africa’s leading bank by assets was shifting centre of gravity of the business back to the continent.
He said Standard Bank’s mid-term goal was to accelerate growth across the African continent, with the longer-term ambition of becoming Africa’s undisputed financial leader.
The group already has a significant footprint, operating in 21 African countries, serving more than 20 million clients and employing over 50 000 people. This scale, Tshabalala said, positions it well to capture the opportunities arising from structural changes in African economies.
He identified four key themes shaping those opportunities, including substantial infrastructure needs, an evolving financial services landscape, growing and increasingly diversified trade and capital flows, and strong economic and demographic growth.
“Africa’s economies are growing fast and steadily and Africa will be the fastest growing major region by 2030. There is a lot of evidence that Africa’s growth has become endogenous and self-sustaining. For example, the major changes in US trade policy last year barely dented Africa’s growth rate,” said Tshabalala.
According to the bank’s outlook, average economic growth across the continent is expected to exceed 4% a year over the next three years, with some individual countries and urban centres expanding at an even faster pace.
This growth is expected to translate into rising demand for financial services across both wholesale and retail segments.
On the wholesale side, the expansion of larger and more sophisticated companies is likely to drive demand for complex financial solutions, including financing, risk management and advisory services.
On the retail side, the continued rise of the middle class and affluent consumers is expected to boost demand for private banking and wealth management offerings.
He said there also remains a vast underserved population requiring simple, accessible and cost-effective banking services, presenting a significant opportunity for scaled, digital-first solutions.
Tshabalala also emphasised the importance of infrastructure development as an important driver of future growth, saying there is a total $170-billion total infrastructure investment needed annually and half of it can be funded within Africa, while another half may require international funding.
“The next opportunity associated with Africa’s growth is that the continent needs a lot more economic infrastructure particularly in transport and in energy. Contrary to old fashioned perceptions, Africa can afford to find half of this from our own resources but like most places, it also requires a substantial amount of international funding,” he said.
He said the group is well-positioned to benefit from these opportunities, supported by deep sector expertise in energy, infrastructure and sustainable finance, as well as a strong balance sheet and access to capital to help meet an estimated $85-billion in international funding needs.
He added that Standard Bank’s strong on-the-ground presence enables it to support domestic funding requirements, while its established relationships with development finance institutions and multilateral development banks allow it to crowd in additional funding.
Tshabalala revealed that diversified trade and capital flows across Africa present a major opportunity with the continent’s total trade expected to rise to $1.75-trillion by 2028 from $1.5-trillion in 2025.
According to Tshabalala, the group is well-positioned to benefit from this trend due to its broad footprint across the continent, complemented by an expansive global presence and its partnership with the ICBC.
