SA FNB bank to invest ZAR 2bn in aggressive Africa growth.

By bne IntelliNews April 11, 2012
South Africas third biggest bank by customer numbers First National Bank (FNB) plans to invest nearly ZAR 2bn (EUR 190.8mn) over the next 12 months in a bid to expand its footprint in South Africa and on the rest of the continent, Business Day reported. FNBs CEO, Michael Jordaan, told Business Day in an interview that FNB would not wait for domestic economic conditions to improve before investing for growth and would continue expanding its franchise in South Africa and Africa. The banks investment plans include also the expansion of its EasyPlan branch network, which targets the entry-level banking segment. The bank will invest also in a number of innovative products and services to be launched in the coming months, as well as in marketing campaigns. FNB, which is a subsidiary of FirstRand, considers an acquisition in Nigeria and is investigating the Ghanaian market. It plans to launch this month FirstRand India, the first retail banking operation to be launched by an African financial services group in the Asian country. FNB operates in eight countries in Africa. It has about 7 million customers in South Africa and 1.1 million in Africa. FNB, which accounts for the bulk of FirstRands earnings, posted a pre-tax profit of ZAR 4.14bn for the six months to December 2011, up 30% y/y. In the same period, FirstRands normalised earnings grew 26% to ZAR 5.8bn.

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