| Tue 9 Dec 2008, 11:16 | | NED - Nedbank Group - Nedbank Group And Ecobank Form African Alliance |
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NED
NED
NED - Nedbank Group - Nedbank Group And Ecobank Form African Alliance
NEDBANK GROUP LIMITED
(Incorporated in the Republic of South Africa)
Registration number: 1966/010630/06
JSE share code: NED
NSX share code: NBK
ISIN: ZAE000004875
("Nedbank Group")
NEDBANK GROUP AND ECOBANK FORM GROUND-BREAKING ALLIANCE ACROSS AFRICA
Nedbank Group and Ecobank Transnational Incorporated (ETI), parent company of
the Ecobank Group, have entered into a strategic business co-operation
relationship to provide customers access to a combined pan-African banking
network covering 30 countries (including South Africa) with over
1 000 branches and banking outlets across the continent.
Through this relationship customers will have the convenience and benefit of a
`one bank` experience across the combined footprint of both banking groups.
Ecobank, the pan-African bank that is currently operating in 25 countries, has
the largest geographic banking coverage in Africa in terms of number of
countries and operates mainly in west, central and east Africa including Ghana,
Nigeria and Kenya. Nedbank Group is one of the four largest banking groups in
South Africa, with banking operations in five other southern African countries.
The alliance will enable the two banks to extend their coverage across Africa on
a co-operative basis while managing costs and risk effectively. Ecobank will
retain its focus on expansion into less mature, growing markets, and will also
enhance its service offering in southern Africa. Nedbank will retain its focus
on banking operations in the Southern Africa Development Community (SADC), and
together with Ecobank provide its clients with comprehensive banking services in
west, central and east Africa and grow its banking services in these markets.
Arnold Ekpe, Chief Executive Officer of ETI, notes: "We are excited about this
strategic alliance which is designed to build a true pan-African champion. It
represents a win-win solution for both institutions, their shareholders and
particularly their customers. Ecobank currently operates across 25 countries in
sub-Saharan Africa. Nedbank is one of South Africa`s leading banks. No other
banking group can currently match this alliance. In our view, it represents not
only a commitment to Africa, but also a commitment to providing world class
service across the countries in which we operate. Our collaboration with Nedbank
will allow us to extend our operations more effectively from middle Africa to
the southern African market in a very capital-efficient manner. It also offers a
good platform for Nedbank to grow its business in other parts of the African
continent."
Tom Boardman, Chief Executive Officer of Nedbank Group, says: "We are committed
to becoming southern Africa`s most highly rated and respected bank and this
alliance allows us to focus on this vision, while providing our clients access
to the largest geographic banking footprint in Africa. In Ecobank we have a
partner who shares similar values and who has extensive local knowledge of doing
business across Africa. Ecobank has demonstrated an ability to expand and grow
in new markets. The alliance will help us grow our business in the rest of
Africa and together we will explore new investment opportunities."
Through the alliance both groups will be positioned to deliver country specific
tailored banking solutions across the African continent in the most convenient
and simplified way to corporate and individual clients spanning day-to-day
transactional banking, financing and investment banking advisory services.
In addition to enhancing accessibility to banking services across the combined
footprint through a `one bank` experience and exploring joint investment
opportunities, other anticipated benefits from this relationship include:
- Leveraging off existing client and business
relationships;
- Utilising each banks` expertise on sector specific
advisory skills such as Nedbank`s expertise in the
minerals, resources, energy and infrastructure sectors;
- Retaining and attracting skilled resources; and
- Utilising state-of-the-art technology, electronic
banking and the use of existing innovative products and
solutions in the field of cash handling for the benefit
of clients.
Graham Dempster, the Chief Executive of Nedbank Corporate, has been involved in
the formation of the alliance and said the strategies of Nedbank and Ecobank are
complementary. "Both banking groups adopt decentralised business models where
they base responsibility and decision-making close to the clients in the
individual businesses, which operate under a standard set of policies, processes
and procedures."
This relationship will be governed by an alliance committee comprising senior
executives of both banks, structured to include specialised sub-committees for
execution of the alliance initiatives.
A `one bank` experience across the largest geographic banking footprint makes
this unique alliance a natural choice for seamless banking across the African
continent.
Sandton
9 December 2008
Sponsors
Merrill Lynch South Africa (Pty) Limited
Nedbank Capital
Date: 09/12/2008 11:16:15 Produced by the JSE SENS Department.
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