Standard Bank disappointed by ICBC deal

JOHANNESBURG, (Reuters)

South Africa's Standard Bank SBKJ.J has been disappointed by the revenue so far from its tie-up with Industrial and Commercial Bank of China 601398.SS 1398.HK, the head of Africa's largest lender told Reuters on Wednesday.

Jacko Maree, Standard Bank's group chief executive, also said in an interview at Reuters Johannesburg bureau the bank is in "hiring mode" for skilled bankers, and aims to double its Nigerian branch network this year.

Standard Bank, which is 20 percent owned by ICBC, is targeting the increasing trade flows between Asia and the resource-rich continent. It currently has about 40 bankers working in China with ICBC, but has struggled to generate revenue from the fast-growing Asian country, he said. "We definitely would have thought by now we would have converted more of those deals into revenue," Maree said. "So we are disappointed."

Standard Bank also faces stiffer competition from overseas players, who are targeting deals between Asia and Africa. Britian's Standard Chartered STAN.L has a long history of doing finance between the two regions, while South Africa's Absa Group ASAJ.J, is majority owned by Barclays BARC.L.

It may also face a threat from HSBC HSBA.L 0005.HK, Europe's biggest bank, which is in exclusive talks to buy South African lender Nedbank NEDJ.J. "When someone like that comes onto your patch, you better sit up and take notice," he said, citing HSBC's global network and strength in corporate and retail banking. "It is hard to see how (HSBC's acquisition) would be good for us."