Standard Bank Group - Future of the Standard Bank/
SBK
SBK
Standard Bank Group - Future of the Standard Bank/African Bank joint venture
partnership
Standard Bank Group Limited
(Incorporated in the Republic of South Africa)
(Registration number 1969/017128/06)
South African Share Code: SBK
Namibian Share Code: SNB
ISIN: ZAE000057378
("Standard Bank Group")
FUTURE OF THE STANDARD BANK/AFRICAN BANK JOINT VENTURE PARTNERSHIP
The Standard Bank of South Africa Limited ("Standard Bank"), a major subsidiary
of Standard Bank Group today announced its decision to give African Bank
Investments Limited 12 months notice on their joint venture in respect of low
income lending ("joint venture").
The joint venture, originally established in late 2000 was developed in order to
leverage the respective expertise of the two parties, both of whom had a
significant franchise in the mass market. The joint venture which was originally
intended to run for a minimum of four years, has to date disbursed in excess of
582 000 loans with a value of R2,1 billion over the five and half years in
operation.
Whilst the joint venture has performed well over the period, Standard Bank has
decided to terminate the joint venture in order to drive its strategy in the
mass market independently.
In terms of the agreement a 12 month notice period commences on 31 May 2006.
During the 12 month notice period it will be business as usual for the parties
and the joint venture will continue to grow its customer base and originate
quality business. Following the notice period no new loans will be originated
and the book will run down over the next 36 months with the joint venture
partners sharing costs and revenues in the existing ratios.
The termination of the joint venture is not expected to have a material impact
on the financial projections and financial results of Standard Bank.
Johannesburg
29 May 2006
Sponsor
Standard Bank
Date: 30/05/2006 08:54:12 AM Produced by the JSE SENS Department
Profile Group (Pty) Ltd. has taken care in preparing all information on this website, but does not accept any liability for errors or out-of-date information.
