(Ecofin Agency) - Further details on the partnership between French and South African banking groups Société Générale and Absa Group should be available by end Q2, 2019, Reuters indicated relaying the statements of Charles Russon, head of investment banking at Absa group.
The two partners announced their agreement but, investors are still wondering how this should be done. M. Russon indicated that work units are doing their best to elaborate terms.
These terms are crucial because the two banking groups recently published slightly divergent indicators for their investment banking activities. The South African group Absa plans to expand activities in Africa with Nigeria as target and Egypt and Angola as potential targets. Société Générale, on the other hand, is reducing its investment banking in Europe and the USA.
Let’s note that the two partners are not in the top10 of investment banks in terms of revenues generated in Africa during Q1, 2019, according to Reuters’ market data. As far as loan management is concerned, Société Générale was the 8th during that quarter while a year earlier, it was the 13th.