JPMorgan to expand in Africa
It said it would overcome regulators' objections.US banking group JPMorgan has announced it wants to expand in Africa in a bid to boost growth.
This is despite previous attempts being rejected by regulators in Ghana and Kenya in the past two years.
"We’ll hopefully start opening branches again in Africa," Jamie Dimon, chief executive officer of JPMorgan Chase & Co, said in a Bloomberg Television interview on Monday (October 19th).
"I’m not doing that because it’s going to affect earnings in the next couple years. I’m doing that because that forms the base for the next generation," he added.
Jamie Dimon said the lender would get around regulators' objections by banking multinational companies and the biggest institutions in those markets. "This is how the bank will build for the future and win," he said.
"We’re not doing retail, we’re not doing stuff like that. So I would say it’s rather low risk. We’re going to do a bunch of things and serve the clients who already want us to be there," he added.
Moody's Investors Service said in a report published in May that Sub-Saharan Africa's fast-expanding banking sector has strong potential to continue its recent growth trend, boosted by robust economies and widening financial inclusion.
It said that investors are increasingly interested in Sub-Saharan African banks, whose assets have risen by more than 15 per cent annually over the past four years.
"We expect Sub-Saharan banking systems to continue expanding strongly over the next 12 to 18 months, helped by robust economic growth and greater banking penetration on the back of the growing accessibility of mobile banking." said Constantinos Kypreos, co-author of the report.