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ASA
AMAGB
Absa Group - Absa Bank Limited And Virgin Group Announce The Entry Of Virgin
Money Into South Africa
ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
ISIN code: ZAE000067237
JSE share code: ASA
("Absa Group")
ABSA BANK LIMITED AND VIRGIN GROUP ANNOUNCE THE ENTRY OF VIRGIN MONEY INTO SOUTH
AFRICA
Absa Bank Limited, a wholly-owned subsidiary of Absa Group and the Virgin Group
have formed a new joint venture which will offer Virgin Money products and
services to South African consumers looking for something new and fresh from the
financial services sector. The venture will widen the choice available to South
African consumers. Absa has a portfolio of alliances and partnerships with
partners that bring strategic assets and capabilities that allow Absa to move
into niche markets that it has so far not tapped.
The new venture will offer an alternative range of value for money financial
services offerings looking to challenge the South African banking establishment.
The range will be designed to meet the needs of customers with lifestyles that
demand immediate action - instant rewards and privileges, fast turn-around times
- and will also offer enhanced access to other companies in the Virgin Group. As
a direct business model, customers will interact with Virgin Money via its call
centre and website operations and the related savings will be passed on to the
customer.
Absa"s growth strategy includes researching opportunities to access new markets
and to improve the value for money of offerings to the full spectrum of
financial services customers in South Africa. Absa executive director: Retail
Banking, Alfie Naidoo, believes that South African banks must start providing
the South African banking customer with alternative value propositions. "For
Absa, Virgin Money is an opportunity to offer a different type of banking
service to customers and an opportunity to grow market share. It is one of a
number of building blocks in our growth strategy."
The roles in the venture are clear. Absa is the local banking partner and
provides the infrastructure, fulfilment and support services to the joint
venture. Virgin Money leads the marketing, branding, product design and customer
service.
Virgin Money currently operates in the UK and Australia and has two million
customers. These UK and Australian operations will not form part of the joint
venture with Absa.
Virgin management chief executive, Gordon McCallum, says, "Absa and Virgin Money
are obvious partners as both are focused on meeting and exceeding customer
needs. Furthermore, each party brings a unique contribution to the mix. Absa
provides the strength and security of South Africa"s largest retail bank to
customers wanting to experience something new but requiring the comfort of a
respected and leading financial services provider. Virgin Money offers a simple
approach to banking, with quick, customer-friendly processes and innovative
products that appeal to customers tired of traditional banking that doesn"t meet
their needs".
John Maxwell, a seasoned executive in the financial services industry, has been
appointed managing director of Virgin Money South Africa.
Enquiries:
Alfie Naidoo
Absa executive director: Retail Banking
Tel: +27 (11) 350-8921
Issued by:
Jacques Badenhorst
Investor Relations
Absa Group Limited
4th floor, Absa Towers East, 170 Main Street, Johannesburg.
Tel: +27 (11) 350-4061. Fax: +27 (11) 350-6487
E-mail: jacques.badenhorst@absa.co.za
Johannesburg
11 April 2006
Lead sponsor
Merrill Lynch South Africa (Proprietary) Limited
Co-sponsor
Absa Corporate and Merchant Bank - Corporate Finance, a division of Absa Bank
Limited
Date: 11/04/2006 07:00:19 AM Produced by the JSE SENS Department
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