Jenkins is a previous head of Barclays' retail division and is a board member of Absa, of which Barclays owns 55%. He is expected to meet Absa's top management in Johannesburg this week.
Absa spokesmen said he would not be speaking to the media during his visit. But it is generally believed Jenkins will put greater emphasis on more diversified income from Absa during his tenure. His predecessor, Bob Diamond, had a marked predilection for investment banking.
Jenkins will have his hands full with the proposed changes in the British banking sector, where the Vickers Commission has recommended that retail and investment banking divisions be ringfenced. This also could have an influence on Absa's operations, but it is reliably understood any ring-fencing activities in the UK will not affect other countries.
Possible regulatory changes in the UK could also entail selling off some of the investment banking activities, perhaps most likely those in Asia. This could lead to greater reliance on Absa's income for Barclays, but only if retail recovers.
Barclays now denies that Diamond ever wanted to increase the Barclays stake in Absa to 75% or that Jenkins has any plans in this regard. Amid speculation of a possible brand change in SA from Absa to Barclays it is now said both are strong brands, though the Barclays brand is used in Africa.
Barclays has denied it had any influence in Absa's recent decision to reverse its lower provisioning figure to the highest ever. It is said Barclays personnel in Johannesburg are mainly working on the integration of technological processes and the expansion into Africa, and are not involved with credit decisions.
The main focus of Absa CEO Maria Ramos is still on expansion in Africa in accordance with the bank's "one bank in Africa" strategy. Though Absa did not want to confirm that credit head Gustav Raubenheimer was leaving Absa, African Bank has now confirmed he will be joining the group in October in a similar position. His is the latest departure from Absa. At least nine top managers have left the bank since the end of 2010.
Source: Financial Mail
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