Get 40% Off
🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Ex-Barclays boss Diamond says ready to grab banking bargains

Published 26/11/2014, 17:47
© Reuters. Barclays bank former Chief Executive Bob Diamond arrives at Portcullis House in London
BARC
-
UBN
-

By Steve Slater

LONDON (Reuters) - Former Barclays Plc (L:BARC) boss Bob Diamond said he intends to snap up banking assets to take advantage of the best opportunities in the industry for decades, as banks shrink and valuations remain depressed.

Diamond is one of the world's best-known bankers after building Barclays' investment bank over a decade and becoming chief executive. He was forced out in 2012 by UK regulators after the lender was fined for attempted rigging of Libor interest rates.

"There are opportunities in financial services that there haven't been for 20 or 30 years, so I'm far from pessimistic," Diamond said at his first public speech in Britain since being ousted from Barclays.

"Valuations are down so they are enticing, there's a massive amount of supply of businesses that are available, and yet the strategic investors of the last 20 or 30 years have been the big global banks and they are off the stage, in fact they are sellers," he said at the FT Banking Summit.

Diamond set up Atlas Merchant Capital in New York last year with former JC Flowers director David Schamis to invest in or advise banks and other financial firms.

He has also co-founded Atlas Mara , which is listed in London and wants to become sub-Saharan Africa's leading bank.

"It's a very ambitious plan, so we've said it is a five to seven year plan," Diamond told Reuters on the sidelines of the conference.

Atlas Mara has made three investments, including a 30 percent stake in Union Bank of Nigeria (LG:UBN) and operations in Botswana, Mozambique, Tanzania and elsewhere, and Diamond said it was likely to buy "two or three" businesses a year as part of its expansion.

He said the business should be able to deliver returns on equity of between 15 and 20 percent or even higher over time.

Atlas Merchant Capital, which has not made any publicly released deals, plans to look more widely than Africa, including at assets being sold by European banks who are shrinking to improve their capital ratios and become less risky.

© Reuters. Barclays bank former Chief Executive Bob Diamond arrives at Portcullis House in London

"We're perfectly placed to be acquirers of these types of institutions and decide in some cases maybe it's a good standalone business, in other cases maybe it should be combined with another institution, in another case maybe restructured. And in some cases maybe bring in new management," Diamond said.

(Editing by William Hardy and David Holmes)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.