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ABSH - Unaudited interim consolidated results for period ended 30 June 2023 and preference share dividend
Absa Bank Limited
Registration number: 1986/004794/06
Incorporated in the Republic of South Africa
JSE share code: ABSH
ISIN: ZAE000079810
("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
We are a pan-African financial services provider, united in a clear purpose. We live our purpose through
our operations in our presence countries. We believe in Africa's potential and are invested in creating, nurturing
and protecting wealth 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.
We are listed on the Johannesburg Stock Exchange (JSE) and have representative offices in Namibia and Nigeria,
as well as securities entities in the United Kingdom, along with technology support in the Czech Republic.
- 4 countries (1)
- 619 outlets (2)
- 5 376 ATMs
- 27 082 employees
- 2.8 million digitally active customers
- 9.6 million active 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%
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
- Gross loans and advances (Increased 5.8%) R1 091.2bn (2022: R1 031.6bn)
- Deposits (Increased 6.09%) R1 071.4bn (2022: R1 009.9bn)
Risk profile
- Stage 3 loans ratio to loans and advances 5.45% (2022: 4.95%)
Liquidity coverage ratio
- 147.1% (2022: 122.6%)
Sound capital
- Common Equity Tier 1 ratio 13.0% (2022: 13.1%)
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 published on https://www.absa.africa/absaafrica/investor-relations/financial-results/and
on the following JSE links: https://senspdf.jse.co.za/documents/2023/jse/issh/absh/HY23Result.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. 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
Bank independent non-executive directors
M S Moloko (Chairman), N S Mjoli-Mncube (Lead Independent Director), T Abdool-Samad, A B Darko(1)(3), R A Keanly,
F Okomo-Okello(2), R van Wyk
Bank executive directors
A Rautenbach (Chief Executive Officer)
J P Quinn (Financial Director)
(1) British (2) Kenyan (3) Ghanaian
Declaration of interim preference share dividend number 35
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 11.75%.
Notice is hereby given that preference dividend number 35, equal to 70% of the average prime rate for 1 March 2023
to 31 August 2023 per Absa Bank preference share has been declared, for the period 1 March 2023 to 31 August 2023.
The dividend is payable on Monday, 18 September 2023, to shareholders of the Absa Bank preference shares recorded
in the register of members of the Company at the close of business on Friday, 15 September 2023.
The Board of Absa Bank confirm that the Bank will satisfy the solvency and liquidity test immediately after completion
of the dividend distribution and for the next 12 months.
Based on the average prime rate, the preference dividend payable for the period 1 March 2023 to 31 August 2023 would
indicatively be 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 31 August 2023.
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 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 4 035.06849 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 3 228.05479 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 the JSE Limited,
the following salient dates for the payment of the dividend are applicable:
Last day to trade cum dividend Tuesday, 12 September 2023
Shares commence trading ex-dividend Wednesday, 13 September 2023
Record date Friday, 15 September 2023
Payment date Monday, 18 September 2023
Share certificates may not be dematerialised or rematerialised between Wednesday, 13 September 2023 and Friday,
15 September 2023, both dates inclusive. On Monday, 18 September 2023, the dividend will be electronically
transferred to the bank accounts of shareholders. The accounts of those shareholders who have dematerialised their
shares (which are held at their participant or broker) will also be credited on Monday, 18 September 2023.
On behalf of the Board
N R Drutman
Company Secretary
Johannesburg
14 August 2023
Absa Bank 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 (Corporate and Investment Bank)
Date: 14-08-2023 07:15:00
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