African Bank is in the process of acquiring Sasfin Bank’s Commercial Equipment Finance (CEF) and Commercial Property Finance (CPF) businesses.
Reports have confirmed that African Bank said the acquisition aligns with its Excellerate25 objectives, aiming to offer a more compelling listing proposition to the investor market.
The head of African Bank business banking, Zweli Manyathi, said the acquisition will diversify their business banking’s revenues, asset classes, and risk profile, according to Daily Investor. “By bringing Sasfin Bank’s CEF and CPF businesses under our umbrella, we will see a significant opportunity in enhancing the average risk-adjusted revenue,” Manyathi said.
The new venture also allows them to offer transactional banking solutions, including transactional accounts, internet banking, and mobile solutions tailored for businesses. Manyathi also went on to mention that the bank will be integrating the commercial property finance book and its dedicated team into our existing ABL/GBL CPF business.
As of the end of February 2023, Sasfin Bank’s gross CPF lending book was valued at approximately R820 million. Comprising of five professionals responsible for managing the CPF business, the team will be joining African Bank to ensure the seamless continuity of services and expertise.
The Sasfin commercial banking acquisition follows African Bank’s acquisition of the majority of Ubank’s disclosed assets and liabilities earlier this year.
