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ABSP/ BIABS -Unaudited summary consolidated results for period ended 30 June 2022 and preference share dividend
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
("Absa Bank" or the "Company")
Unaudited summary consolidated results
for the reporting period ended 30 June 2022 and preference share dividend declaration
We are an African bank, inspired by the people we serve and determined to be a globally respected organisation
of which Africa can be proud. As a financial services provider, we play an integral role in the economic life of
individuals, businesses, and nations. To this end, we offer a universal set of products and services across retail,
business, corporate, investment and wealth banking.
- 4 countries(1)
- 619 outlets(2)
- 6 297 ATMs
- 25 758 employees
- 2.2m digitally active customers
- 105 375 point-of-sale devices
(1) Excludes security entities in the United Kingdom and United States.
(2) Includes branches and sales centres.
We bring possibilities to life
Possibilities come to life when we meet every challenge with tenacity, ingenuity, positivity and creativity.
We coined a new word for our purpose, which is the driving force behind everything we do, a way of doing things
that is unique to our continent.
We call it Africanacity
- Absa Bank Group certified as 2022 Top Employer in Africa by the Top Employer Institute.
- Absa aims for R100 billion in sustainable finance by 2025.
- Absa received the award for Best Digital Bank South Africa at the Global Banking and Finance Awards 2022.
- Top Honours for CIB at the EMEA Finance Achievement Awards 2021 Best Equity House in Africa and Best Syndicated
Loan House in Southern Africa.
- Overall top spot in an inaugural survey on how investment professionals rate local companies in investor relations.
- Launch of the Absa Small Business Friday campaign as a commitment to supporting Small and Medium Enterprises by
building strong relationships with them and creating innovative solutions that meet their unique needs.
Normalised financial results as a consequence of Barclays PLC Separation
A normalised view of the 2022 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.
Normalised results will be presented for future periods to the extent that the financial impact of the
Separation is considered material.
Performance overview for the period ended 30 June 2022
Total income
2022 Increased 8.7% 2021 2022 Increased 8.7% 2021
R31 300m IFRS R28 797m R31 278m Normalised R28 774m
Headline earnings per ordinary share
2022 Increased 17.8% 2021 2022 Increased 15% 2021
1 371.4 cents IFRS 1 163.7 cents 1 430.1 cents Normalised 1 243.8 cents
Basic earnings per share
2022 Increased 15.5% 2021 2022 Increased 12.7% 2021
1 337.9 cents IFRS 1 158.1 cents 1 396.8 cents Normalised 1 238.9 cents
Net asset value per ordinary share
2022 Increased 5.2% 2021 2022 Increased 6.6% 2021
20 100 cents IFRS 19 100 cents 19 336 cents Normalised 18 133 cents
Return on equity
2022 Increased 2021 2022 Increased 2021
13.7% IFRS 12.5% 14.9% Normalised 14.2%
Cost-to-income ratio
2022 Decreased 2021 2022 Decreased 2021
55.8% IFRS 58.4% 54.6% Normalised 56.5%
Net interest margin
2022 Increased 2021 2022 Increased 2021
3.70% IFRS 3.62% 3.70% Normalised 3.62%
Dividend per preference share
2022 Increased 16.7% 2021
2 883.42466 cents IFRS 2 470.13699 cents
Loans and deposits growth
- Gross loans and advances (Increased 11%) R1 031.6bn (2021: R930bn)
- Deposits (Increased 8%) R1 009.9bn (2021: R939bn)
Risk profile
- Stage 3 loans ratio to gross loans and advances 4.95% (2021: 5.45%)
Liquidity coverage ratio
- 122.6% (2021: 131.1%)
Sound capital
- Common Equity Tier 1 ratio 13.1% (2021: 11.8%)
Short form statement
This short-form announcement is the responsibility of the directors of Absa Bank Limited. It is only a
summary of the information in the full announcement.
Any investment decisions by stakeholders should be based on consideration of the full announcement available
on the Company's website at https://www.absa.africa/absaafrica/investor-relations/financial-results/ and
on the following JSE link: https://senspdf.jse.co.za/documents/2022/jse/isse/ABSP/Interim22.pdf
The full interim report is available on the Company's website, copies of the full announcement may also
be requested at the Company's registered office, at no charge, during office hours on normal business days,
subject to COVID-19 office protocols. The full interim report is also available at the sponsor's office.
Registered office
7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001
Board of directors
Independent non-executive directors
M S Moloko (Independent Chairman), N S Mjoli-Mncube (Lead independent director), T Abdool-Samad, F Okomo-Okello(2),
A B Darko(1) (3), R A Keanly, R van Wyk
Executive directors
A Rautenbach (Group Chief Executive), J P Quinn (Group Financial Director)
(1) British (2) Kenyan (3) Ghanaian
Declaration of interim preference share dividend number 33
The Absa Bank preference shares have an effective coupon rate of 70% of Absa Bank's prevailing prime overdraft
lending rate (prime rate). Absa Bank's current prime rate is 9%.
Notice is hereby given of preference dividend number 33, equal to 70% of the average prime rate for 1 March 2022
to 31 August 2022 per Absa Bank preference share has been declared, for the period 1 March 2022 to 31 August 2022.
The dividend is payable on Monday, 19 September 2022, to shareholders of the Absa Bank preference shares recorded
in the Register of Members of the Company at the close of business on Friday, 16 September 2022.
The Board of Absa Bank confirms that the Bank will satisfy the solvency and liquidity test immediately after
completion of the dividend distribution.
Based on the average prime rate, the preference dividend payable for the period 1 March 2022 to 31 August 2022
would indicatively be 2 883.42466 cents per Absa Bank preference share, on the assumption that there will be no
further changes in the prime rate between the declaration date and 31 August 2022.
The dividend will be subject to dividends withholding tax at a rate of 20%. In accordance with paragraphs 11.17
(a)(i) to (ix) and 11.17(c) of the JSE Limited Listings Requirements, the following additional information is disclosed:
- The dividend has been declared out of income reserves.
- The local dividend tax rate is twenty per cent (20%).
- The gross local dividend amount is 2 883.42466 cents per preference share for shareholders exempt from
the dividend tax.
- The net local dividend for shareholders subject to withholding tax at a rate of 20% amounts to 2 306.73973 cents
per preference share.
- Absa Bank currently has 4 944 839 preference shares in issue.
- Absa Bank's income tax reference number is 9575117719.
In compliance with the requirements of Strate, the electronic settlement and custody system used by JSE Limited,
the following salient dates for the payment of the dividend are applicable:
Last day to trade cum dividend Tuesday, 13 September 2022
Shares commence trading ex-dividend Wednesday, 14 September 2022
Record date Friday, 16 September 2022
Payment date Monday, 19 September 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 14 September 2022
and Friday, 16 September 2022, both dates inclusive. On Monday, 19 September 2022, the dividend will be
electronically transferred to the bank accounts of shareholders.
On behalf of the Board
N R Drutman Johannesburg
Company Secretary 15 August 2022
Absa Bank Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West,
15 Troye Street, Johannesburg, 2001.
Sponsors
Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited
Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)
Date: 15-08-2022 07:25:00
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