African Bank buys Sasfin Bank’s commercial divisions

African Bank is acquiring Sasfin Bank’s Commercial Equipment Finance (CEF) and Commercial Property Finance (CPF) businesses.

African Bank said the acquisition aligns with its Excellerate25 objectives, which aim to offer a more compelling listing proposition to the investor market.

Zweli Manyathi, the head of African Bank business banking, said the acquisition will diversify their business banking’s revenues, asset classes, and risk profile.

“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.

It also allows them to offer transactional banking solutions, including transactional accounts, internet banking, and mobile solutions tailored for businesses.

“We will be integrating the commercial property finance book and its dedicated team into our existing ABL/GBL CPF business,” he said.

As of the end of February 2023, Sasfin Bank’s gross CPF lending book was valued at approximately R820 million.

The team, comprising five professionals responsible for managing the CPF business, will join 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.

Ubank, which has a strong presence in mining and rural communities, was placed under curatorship on 16 May 2022. However, it continued to operate in the ordinary course of business.

African Bank said it was migrating Ubank’s customers to its MyWORLD product, which offers a higher degree of personalisation, lower fees, and more competitive value. 

In May this year, African Bank acquired 100% of Grindrod Bank in a deal worth R1.5 billion, giving it an existing corporate and SME client base.