CBA takes fresh global tack
Lending to international names picked up at Commonwealth Bank over the past half year, while the bank also stepped up asset growth in select offshore markets.The bank also named African Rainbow Capital as its prospective co-investor in a new South African subsidiary.South Africa is an escalating priority for CommBank, with the group making the most of local connections of its one-year old, A$40 million fintech investment, TYME. The bank is aiming for around 1000 kiosks in place by next year, up from 685 to date, and mostly with the aid of retail chain Pick n Pay. African Rainbow Capital is a ten per cent future shareholder in CBA South Africa, CBA's managing director, Ian Narev, told a briefing yesterday on the group's results for the December 2016 half year. There are no plans outlined yet for the incorporation of a banking entity in that African gateway market.ARC is a connected "black empowerment, private equity" entity on Narev's telling, or an "investment company focusing on the South African and African financial services industry" to quote the firm's website.A minority stake in CBA South Africa may be ARC's first banking stake.The know-how acquired through TYME was central to the bank's modernisation plans in Indonesia and also India, the latter also a novel target market for Commonwealth Bank.More conventional markets in Asia are also a big part of the bank's offshore growth story over the most recent half.The bank cited "strong contributions from associates in China" as a key factor behind a second consecutive half of bumper income from its international division.