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Absa Bank Limited
Registration number: 1986/004794/06, Incorporated in the Republic of South Africa
JSE share code: ABSP, ISIN: ZAE000079810
Bond Issuer Code: BIABS, ETN Issuer Code: ABSN1 and Hybrid Issuer Code: ABSH
(“Absa Bank” or the “Company” or “Bank”)
Unaudited interim consolidated results
for the reporting period ended 30 June 2023 and preference share dividend declaration
Empowering Africa’s tomorrow, together
...one story at a time
Low contrast design (for base colour applications)
We are a pan-African financial services provider, united in a We are listed on the Johannesburg Stock Exchange (JSE)
clear purpose. We live our purpose through our Warmth
operations in and have representative offices in Namibia and Nigeria,
Passion
our presence countries. We believe in Africa’s potential and as well as securities entities in the United Kingdom, along
are invested in creating, nurturing and protecting wealth with technology support in the Czech Republic.
and growth in our continent. We play an integral role in the
economic lives of individuals, businesses and nations, while
leading the way to a sustainable future.
4 619 5 376 27 082 2.8 million 9.6 million
countries1 outlets2 ATMs employees digitally active active customers
customers
1
Excludes securities entity in the United Kingdom.
2
Outlets include branches and sales centres.
Normalised financial results as a consequence of Barclays PLC Separation
A normalised view of the 2023 interim results is provided which adjusts for the consequences of the separation from Barclays
PLC. This view better reflects the Bank’s underlying performance. International Financial Reporting Standards (IFRS) compliant
financial results will continue to be presented as required by the Companies Act and the JSE Limited (JSE) Listings Requirements
and include a reconciliation between the normalised and IFRS views. The Bank intends to stop issuing normalised financial
results from 2024 as the impact is expected to be immaterial.
Performance overview for the period ended 30 June
Total income
2023 Increased 4.0% 2022 2023 Increased 3.9% 2022
R32 550m IFRS R31 300m R32 493m Normalised R31 278m
Headline earnings per ordinary share
2023 Decreased 36.3% 2022 2023 Decreased 33.2% 2022
873.7 cents IFRS 1 371.4 cents 955.4 cents Normalised 1 430.1 cents
Basic earnings per share
2023 Decreased 35.7% 2022 2023 Decreased 32.6% 2022
859.7 cents IFRS 1 337.9 cents 942.0 cents Normalised 1 396.8 cents
Net asset value per ordinary share
2023 Increased 0.8% 2022 2023 Increased 1.4% 2022
20 254 cents IFRS 20 100 cents 19 610 cents Normalised 19 336 cents
Return on equity
2023 Decreased 36.5% 2022 2023 Decreased 34.2% 2022
8.7% IFRS 13.7% 9.8% Normalised 14.9%
Performance overview for the period ended 30 June continued
Cost-to-income ratio
2023 Increased 5.7% 2022 2023 Increased 5.3% 2022
59.0% IFRS 55.8% 57.5% Normalised 54.6%
Net interest margin
2023 Decreased 2.7% 2022 2023 Decreased 2.7% 2022
3.60% IFRS 3.70% 3.60% Normalised 3.70%
Dividend per preference share
2023 Increased 39.9% 2022
4 035.06849 cents IFRS 2 883.42466 cents
Loans and deposits growth Risk profile Liquidity coverage ratio Sound capital
Gross loans and advances
(Increased 5.8%)
Deposits
(Increased 6.09%)
Stage 3 loans ratio to gross
loans and advances
147.1% Common Equity Tier
1 ratio
(2022: 122.6%)
R1 091.2bn R1 071.4bn 5.45% 13.0%
(2022 R1 031.6bn) (2022: R1 009.9bn) (2022: 4.95%) (2022: 13.1%)
Short-form statement
This short-form announcement is the responsibility of the directors of Absa Registered office
Bank Limited. It is only a summary of the information in the full announcement. 7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001
Any investment decisions by stakeholders should be based on consideration
Board of directors
of the full announcement published on https://www.absa.africa/absaafrica/
Bank independent non-executive directors
investor-relations/financial-results/and on the following JSE links:
M S Moloko (Chairman), N S Mjoli-Mncube (Lead Independent Director)
https://senspdf.jse.co.za/documents/2023/jse/issh/ABSH/HY23Result.pdf
T Abdool-Samad, A B Darko(1), (3), R A Keanly, F Okomo-Okello(2), R van Wyk
The full interim report is available on the Company’s website, copies of the full
Bank executive directors
announcement may also be requested at the Company’s registered office, at
A Rautenbach (Chief Executive Officer)
no charge, during office hours on normal business days. The full interim report
J P Quinn (Financial Director)
is also available at the sponsor’s office.
(1)
British (2)
Kenyan (3)
Ghanaian
Declaration of a interim preference share dividend number 35 In compliance with the requirements of Strate, the electronic settlement and
The Absa Bank preference shares have an effective coupon rate custody system used by the JSE Limited, the following salient dates for the
of 70% of Absa Bank’s prevailing prime overdraft lending rate (prime rate). payment of the dividend are applicable:
Absa Bank’s current prime rate is 11.75%.
Last day to trade cum dividend Tuesday, 12 September 2023
Notice is hereby given that preference dividend number 35, equal to 70% of Shares commence trading ex-dividend Wednesday, 13 September 2023
the average prime rate for 1 March 2023 to 31 August 2023 per Absa Bank
Record date Friday, 15 September 2023
preference share has been declared, for the period 1 March 2023 to
Payment date Monday, 18 September 2023
31 August 2023.
The dividend is payable on Monday, 18 September 2023, to shareholders of Share certificates may not be dematerialised or rematerialised between
the Absa Bank preference shares recorded in the register of members of the Wednesday, 13 September 2023 and Friday, 15 September 2023, both dates
Company at the close of business on Friday, 15 September 2023. inclusive. On Monday, 18 September 2023, the dividend will be electronically
The Board of Absa Bank confirm that the Bank will satisfy the solvency and transferred to the bank accounts of shareholders. The accounts of those
liquidity test immediately after completion of the dividend distribution and for shareholders who have dematerialised their shares (which are held at their
the next 12 months. participant or broker) will also be credited on Monday, 18 September 2023.
Based on the average prime rate, the preference dividend payable for On behalf of the Board
the period 1 March 2023 to 31 August 2023 would indicatively be
N R Drutman
4 035.06849 cents per Absa Bank preference share on assumption that there
will be no further changes in the prime rate between the declaration date and Company Secretary
31 August 2023. Johannesburg
The dividend will be subject to dividends withholding tax at a rate of 20%. 14 August 2023
In accordance with paragraphs 11.17(a)(i) to (ix) and 11.17(c) of the JSE Absa Bank is a company domiciled in South Africa. Its registered office is
Listings Requirements, the following additional information is disclosed: 7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001.
› The dividend has been declared out of income reserves. Sponsors
› The local dividend tax rate is twenty per cent (20%). Lead independent sponsor
› The gross local dividend amount is 4 035.06849 cents per preference
J. P. Morgan Equities South Africa Proprietary Limited
share for shareholders exempt from the dividend tax.
› The net local dividend for shareholders subject to withholding tax at a rate Joint sponsor
of 20% amounts to 3 228.05479 cents per preference share. Absa Bank (Corporate and Investment Bank)
› Absa Bank currently has 4 944 839 preference shares in issue.
› Absa Bank’s income tax reference number is 9575117719.
www.absa.africa/absaafrica/investor-relations/financial-results/
