Absa makeover nearly complete

Bosses pick up the pieces after the Barclays interbank rates scandal

The restructuring process at Absa, which has attracted negative attention to the group, will be concluded by the end of this year, according to the bank's chief operating and integration officer for Africa, Philip Freeborn.

Speaking on the sidelines of the group's chairmen conference in Nairobi, Kenya, this week, Freeborn said once the restructuring is concluded "the benefits of that will be seen for some years to come".

Absa, majority owned by Barclays, was rattled when a number of senior executives left in short succession.

CEO Maria Ramos is currently in the process of aligning Barclays Africa's operations under Absa. The process should be concluded next year once all regulatory hurdles are completed. While in Kenya this week, Ramos met the country's central bank governor, Njuguna Ndung'u. Barclays Bank Kenya is the largest Barclays subsidiary on the continent after Absa.

Once the restructuring is done, Absa's business will be done in the "right way", according to Freeborn, who is now largely regarded as the new "Louis von Zeuner" of the group.

Barclays' woes in Europe have affected Africa and Freeborn said heads of various operations on the continent were frustrated by the leadership vacuum when group CEO Bob Diamond resigned following the London interbank rates scandal.

"There is always difficulty when you have a change of leadership. It created uncertainty when you did not have a chairman, chief operating officer and CEO," he said.

Soon after Antony Jerkins took over as the new CEO he confirmed the implementation of the African strategy.

Analysts have been uncertain about Absa's Africa growth strategy, which at times was seen as competing with the parent company on the continent.

Freeborn said Barclays wants to leverage its position as controlling shareholder, which is a positive move for staff and clients. However, it is challenging for Absa as it is now exposed to bigger leadership roles while other operations on the continent have to accept that head office in now in Johannesburg .

Freeborn reiterated that there had been duplications in operations.

Ramos reaffirmed that Absa will not re-brand as Barclays when the Africa operations are combined.

Ramos celebrated her third year at Absa's helm with the chairmen and some senior executives from various operations on the continent and Europe. Nonetheless, the question of whether the board will renew her contract is being asked ever louder.