Absa 2018 earnings increases by 3%, hits R16.1 billion

Banking group Absa has recently reported a three percent increase to R16.1 billion in 2018 normalised headline earnings and said its return on equity improved to 16.8 percent from 16.5 percent.

Revenue was up four percent to R75.7 billion and Absa declared a four percent higher dividend of R11.10 per share.

It said 2018 was a year of almost unprecedented corporate activity as the group, formerly owned by the UK’s Barclays, re-positioned itself for delivery against a new growth strategy as an independent African bank.

The group financial director, Jason Quinn, said, “Despite a challenging backdrop, we are particularly pleased with our improved momentum as we embark on our new growth strategy”, “This was evident in our gross loans to customers which increased by 13 percent.”

In its largest business, retail in South Africa, Absa said lending momentum outpaced the market, with good growth across home loans, vehicle and asset finance and personal loans.

Deposits grew by 11 percent with strong growth in fixed and notice deposits.

Absa Group has a presence in 12 countries in Africa, with approximately 42,000 employees.

It owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa (Absa Bank), Tanzania (Barclays Bank Tanzania and National Bank of Commerce), Uganda and Zambia.