Wrap Text
ASA - ABSA Group Limited - Profit and dividend announcement; audited condensed
consolidated financial results for the year ended 31 December 2011
ABSA GROUP LIMITED
Registration number: 1986/003934/06
Authorised financial services and registered credit provider (NCRCP7)
Incorporated in the Republic of South Africa
ISIN: ZAE000067237
JSE share code: ASA
Issuer code: AMAGB
(Absa, Absa Group, the Group or the Company)
PROFIT AND DIVIDEND ANNOUNCEMENT; AUDITED CONDENSED CONSOLIDATED FINANCIAL
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2011
CONSOLIDATED SALIENT FEATURES
31 December
Chang 2009(1)
2011 2010(1) e
(Audited)
(Audited) (Audited) %
Statement of comprehensive
income (Rm)
Headline earnings(2) 9 719 8 041 21 7 621
Profit attributable to ordinary 9 674 8 118 19 6 840
equity holders of the Group
Statement of financial position
Total assets (Rm) 786 719 725 957 8 721 641
Loans and advances to customers 503 503 508 780 (1) 517 008
(Rm)
Deposits due to customers (Rm) 440 960 387 598 14 367 210
Loans-to-deposits ratio (%)(3) 88,1 92,1 96,0
Off-statement of financial
position (Rm)
Assets under management and 213 186 194 949 9 168 289
administration(4)
Financial Services(5) 167 669 163 415 8 145 453
Money market 57 798 66 256 (13) 55 320
Non-money market 109 871 97 159 13 90 133
Financial performance (%)
Return on average equity(3) 16,4 15,1 15,5
Return on average assets(6) 1,32 1,10 1,00
Return on average risk-weighted 2,35 1,99 1,97
assets(6)
Operating performance (%)
Net interest margin on average 4,11 3,94 3,65
interest-bearing assets(6)
Impairment losses on loans and 1,01 1,18 1,70
advances as % of average loans and
advances to customers(6)
Non-performing loans as % of loans 6,9 7,6 6,8
and advances to customers(6)
Non-interest income as % of total 46,7 45,5 48,1
operating income(3)
Cost-to-income ratio(3) 55,5 56,2 49,6
Effective tax rate, excluding 28,3 27,5 23,8
indirect taxation
Share statistics (million)
Number of ordinary shares in issue 718,2 718,2 718,2
Weighted average number of 716,8 716,3 693,2
ordinary shares in issue
Diluted weighted average number of 719,9 720,7 711,5
ordinary shares in issue
Share statistics (cents)
Headline earnings per share 1 355,9 1 122,6 21 1 099,4
Diluted headline earnings per 1 350,0 1 115,7 21 1 072,0
share
Basic earnings per share 1 349,6 1 133,3 19 986,7
Diluted earnings per share 1 343,8 1 126,4 19 962,2
Dividends per ordinary share 684 455 50 445
relating to income for the year
Dividend cover (times)(3) 2,0 2,5 2,5
Net asset value per share(3) 8 690 7 838 11 7 038
Tangible net asset value per 8 392 7 588 11 6 865
share(3)
Capital adequacy (%)(6)
Absa Group 16,7 15,5 15,6
Absa Bank 16,2 14,8 14,7
Notes
1. Comparatives have been reclassified. Refer to note 20.
2. After allowing for R284 million (2010: R320 million) profit
attributable to preference equity holders of the Group.
3. These ratios have been calculated by management based on extracted
audited information contained in the audited annual consolidated
financial statements.
4. Comparatives have been restated for the inclusion of assets managed by
Absa Capital on behalf of clients, alternative asset management and
exchange-traded funds, in order to align assets under management and
administration to current market practice.
5. The segmentation of assets under management and administration is
unaudited.
6. These ratios are unaudited.
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December
2011 2010(1) 2009(1)
(Audited) (Audited) Change (Audited)
Rm Rm % Rm
Assets
Cash, cash balances and balances 26 997 23 741 14 20 206
with central banks
Statutory liquid asset portfolio 57 473 48 215 19 33 943
Loans and advances to banks 57 432 27 495 >100 43 223
Trading portfolio assets 84 623 62 047 36 52 302
Hedging portfolio assets 4 299 4 662 (8) 2 558
Other assets 16 219 12 855 26 10 586
Current tax assets 288 196 47 234
Non-current assets held for sale 35 - 100 -
1
Loans and advances to customers 503 503 508 780 (1) 517 008
2,3,4
Reinsurance assets 1 009 860 17 719
Investment securities 21 182 24 446 (13) 29 955
Investments in associates and 420 416 1 487
joint ventures
Goodwill and intangible assets 2 135 1 794 19 1 245
Investment properties 2 839 2 523 13 2 195
Property and equipment 7 996 7 493 7 6 606
Deferred tax assets 269 434 (38) 374
Total assets 786 719 725 957 8 721 641
Liabilities
Deposits from banks 38 339 15 406 >100 36 541
Trading portfolio liabilities 55 960 47 454 18 44 245
Hedging portfolio liabilities 2 456 1 881 31 565
Other liabilities 14 695 11 239 31 12 212
Provisions 1 710 1 808 (5) 1 684
Current tax liabilities 267 965 (72) 59
Deposits due to customers 440 960 387 598 14 367 210
5
Debt securities in issue 130 262 164 545 (21) 171 376
6
Liabilities under investment 15 233 13 964 9 12 446
contracts
Policyholder liabilities under 3 183 3 001 6 3 136
insurance contracts
Borrowed funds 14 051 13 649 3 13 530
7
Deferred tax liabilities 1 198 2 298 (48) 2 147
Total liabilities 718 314 663 808 8 665 151
Equity
Capital and reserves
Attributable to ordinary equity
holders of the Group:
Share capital 1 434 1 433 0 1 432
Share premium 4 676 4 590 2 4 784
Retained earnings 53 813 47 958 12 43 153
Other reserves 2 385 2 309 3 1 178
62 308 56 290 11 50 547
Non-controlling interest - 1 453 1 215 20 1 299
ordinary shares
Non-controlling interest - 4 644 4 644 - 4 644
preference shares
Total equity 68 405 62 149 10 56 490
Total equity and liabilities 786 719 725 957 8 721 641
Note
(1)Comparatives have been reclassified. Refer to note 20.
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the year ended 31 December
2011 2010
(Audited) (Audited) Change
Rm Rm %
Net interest income 24 429 23 340 5
Interest and similar income 51 221 54 241 (6)
8.1
Interest expense and similar charges (26 792) (30 901) 13
8.2
Impairment losses on loans and advances (5 081) (6 005) 15
3
Net interest income after impairment 19 348 17 335 12
losses on loans and advances
Non-interest income 21 403 19 474 10
Net fee and commission income 15 293 14 391 6
Fee and commission income 17 422 16 454 6
9.1
Fee and commission expense (2 129) (2 063) (3)
9.1
Net insurance premium income 5 209 4 602 13
Net insurance claims and benefits paid (2 517) (2 405) (5)
Changes in investment contract and (914) (1 059) 14
insurance contract liabilities
Gains and losses from banking and trading 2 594 2 349 10
activities
9.2
Gains and losses from investment 966 884 9
activities 9.3
Other operating income 772 712 8
Operating profit before operating 40 751 36 809 11
expenditure
Operating expenditure (26 581) (24 949) (7)
Operating expenses (25 458) (24 070) (6)
10.1
Other impairments (52) (108) 52
10.2
Indirect taxation (1 071) (771) (39)
Share of post-tax results of associates 40 (9) >100
and joint ventures
Operating profit before income tax 14 210 11 851 20
Taxation expense (4 026) (3 262) (23)
Profit for the year 10 184 8 589 19
Other comprehensive income
Foreign exchange differences on 522 (371) >100
translation of foreign operations
Movement in cash flow hedging reserve (237) 1 152 >(100)
Fair value gains arising during the year 1 972 3 421 (42)
Amount removed from other comprehensive (2 300) (1 820) (26)
income and recognised in the profit and
loss component of the statement of
comprehensive income
Deferred tax 91 (449) >100
Movement in available-for-sale reserve (17) 166 >(100)
Fair value (losses)/gains arising during (58) 146 >(100)
the year
Amortisation of government bonds - 20 92 (78)
release to the profit and loss component
of the statement of comprehensive income
Deferred tax 21 (72) >100
Movement in retirement benefit asset and (51) 21 >(100)
liabilities
(Decrease)/increase in retirement benefit (66) 27 >(100)
surplus
(Increase)/decrease in retirement benefit (5) 2 >(100)
deficit
Deferred tax 20 (8) >100
Total comprehensive income for the year 10 401 9 557 9
Profit attributable to:
Ordinary equity holders of the Group 9 674 8 118 19
Non-controlling interest - ordinary 226 151 50
shares
Non-controlling interest - preference 284 320 (11)
shares
10 184 8 589 19
Total comprehensive income attributable
to:
Ordinary equity holders of the Group 9 791 9 138 7
Non-controlling interest - ordinary 326 99 >100
shares
Non-controlling interest - preference 284 320 (11)
shares
10 401 9 557 9
Earnings per share:
Basic earnings per share (cents) 1 349,6 1 133,3 19
Diluted earnings per share (cents) 1 343,8 1 126,4 19
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December
2011 2010(1)
(Audited) (Audited) Change
Rm Rm %
Net cash generated from operating 8 305 2 822 >100
activities
Net cash (utilised)/generated from (511) 880 >(100)
investing activities
Net cash utilised in financing activities (4 143) (4 263) 3
Net increase/(decrease) in cash and cash 3 651 (561) >100
equivalents
Cash and cash equivalents at the 6 417 6 976 (8)
beginning of the year
1
Effect of exchange rate movements on cash 0 2 (100)
and cash equivalents
Cash and cash equivalents at the end of 10 068 6 417 57
the year 2
NOTES
1. Cash and cash equivalents at the
beginning of the year
Cash, cash balances and balances with 4 939 5 175 (5)
central banks
Loans and advances to banks 1 478 1 801 (18)
6 417 6 976 (8)
2. Cash and cash equivalents at the end
of the year
Cash, cash balances and balances with 7 893 4 939 60
central banks
Loans and advances to banks 2 175 1 478 47
10 068 6 417 57
Note
(1)Comparatives have been reclassified. Refer to note 20.
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 31 December
2011
(Audited)
Total Non- Non- Total
equity controlli controlli equity
attributab ng ng
le to interest- interest-
ordinary ordinary preferenc
equity shares e shares
holders of
the Group
Rm Rm Rm Rm
Balance at the beginning of 56 290 1 215 4 644 62 149
the year
Total comprehensive income for 9 791 326 284 10 401
the year
Profit for the year 9 674 226 284 10 184
Other comprehensive income 117 100 - 217
Dividends paid during the year (3 744) (173) (284) (4 201)
Share buy-back in respect of (281) - - (281)
equity-settled share-based
payment schemes
Elimination of the movement in 28 - - 28
treasury shares held by Absa
Group Limited Share Incentive
Trust
Elimination of the movement in 166 - - 166
treasury shares held by Group
subsidiaries
Movement in the share-based 58 - - 58
payment reserve
Transfer from share-based - - - -
payment reserve
Transfer from share-based (174) - - (174)
payment reserve
Transfer to share capital and 174 - - 174
share premium
Value of employee services 58 - - 58
Movement in general credit - - - -
risk reserve
Transfer from general credit (48) - - (48)
risk reserve
Transfer to retained earnings 48 - - 48
Movement in insurance - - - -
contingency reserve
Transfer to insurance 19 - - 19
contingency reserve
Transfer from retained (19) - - (19)
earnings
Share of post-tax results of - - - -
associates and joint ventures
Transfer to associates` and 40 - - 40
joint ventures` reserve
Transfer from retained (40) - - (40)
earnings
Disposal of associates and - - - -
joint ventures - release of
reserves
Transfer to associates` and 13 - - 13
joint ventures` reserve
Transfer from retained (13) - - (13)
earnings
Increase in interest of non- - 21 - 21
controlling equity holders
Non-controlling interest - 64 - 64
arising from business
combinations
Balance at the end of the year 62 308 1 453 4 644 68 405
2010
(Audited)
Total Non- Non- Total
equity controlli controlli equity
attributab ng ng
le to interest- interest-
ordinary ordinary preferenc
equity shares e shares
holders of
the Group
Rm Rm Rm Rm
Balance at the beginning of 50 547 1 299 4 644 56 490
the year
Total comprehensive income for 9 138 99 320 9 557
the year
Profit for the year 8 118 151 320 8 589
Other comprehensive income 1 020 (52) - 968
Dividends paid during the year (3 191) (142) (320) (3 653)
Share buy-back in respect of (234) - - (234)
equity-settled share-based
payment schemes
Elimination of the movement in 31 - - 31
treasury shares held by Absa
Group Limited Share Incentive
Trust
Elimination of the movement in (49) - - (49)
treasury shares held by Group
subsidiaries
Movement in the share-based 48 - - 48
payment reserve
Transfer from share-based - - - -
payment reserve
Transfer from share-based (61) - - (61)
payment reserve
Transfer to share capital, 61 - - 61
share premium and retained
earnings
Value of employee services 48 - - 48
Movement in general credit - - - -
risk reserve
Transfer to general credit 39 - - 39
risk reserve
Transfer from retained (39) - - (39)
earnings
Movement in insurance - - - -
contingency reserve
Transfer to insurance 55 - - 55
contingency reserve
Transfer from retained (55) - - (55)
earnings
Share of post-tax results of - - - -
associates and joint ventures
Transfer from associates` and (9) - - (9)
joint ventures` reserve
Transfer to retained earnings 9 - - 9
Disposal of associates and - - - -
joint ventures - release of
reserves
Transfer to associates` and 60 - - 60
joint ventures` reserve
Transfer from retained (60) - - (60)
earnings
Dilution of non-controlling 0 (0) - -
equity holders` interest
Increase in the interest of - 37 - 37
non-controlling equity holders
Non-controlling interest - (78) - (78)
arising from business
combinations
Balance at the end of the year 56 290 1 215 4 644 62 149
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
as at 31 December
1. NON-CURRENT ASSETS HELD FOR SALE
On 30 June 2011, the Group, through its Absa Capital and Absa Business
Bank segments, transferred its investment in Sekunjalo Investments
Limited, with a carrying value of R43 million, to non-current assets
held for sale. A portion of this investment was subsequently sold in
July 2011 and the remaining portion transferred to investment
securities.
The Group, through its Absa Capital segment, also transferred certain
investments designated at fair value through profit or loss with a
carrying value of R326 million to non-current assets held for sale on 30
June 2011. These investments were subsequently sold in August 2011.
The Group, through its Corporate Real Estate business, concluded
contracts for the sale of several properties during 2011, with transfer
due to take place during 2012.
2. LOANS AND ADVANCES TO CUSTOMERS
2011 2010(1) Change 2009(1)
(Audited) (Audited) % (Audited)
Rm Rm Rm
Cheque accounts 33 398 32 005 4 39 801
Corporate overdrafts 10 681 9 612 11 13 484
and specialised finance
loans
Credit cards 21 579 20 663 4 20 202
Foreign currency loans 9 628 6 609 46 7 870
Instalment credit 57 385 56 967 1 59 396
agreements
Gross advances 68 540 67 517 2 69 849
Unearned finance (11 155) (10 550) (6) (10 453)
charges
Reverse repurchase 1 613 3 063 (47) 1 988
agreements
Loans to associates and 7 909 8 025 (1) 7 878
joint ventures
Microloans 1 922 2 069 (7) 2 936
Mortgages 292 463 307 054 (5) 304 724
Other(2) 3 197 2 948 8 3 322
Overnight finance 12 320 7 647 61 12 340
Personal and term loans 29 925 28 283 6 21 645
Preference shares 6 958 6 622 5 7 967
Wholesale overdrafts 26 656 31 115 (14) 26 613
Gross loans and 515 634 522 682 (1) 530 166
advances to customers
Impairment losses on (12 131) (13 902) 13 (13 158)
loans and advances
(refer to note 3)
503 503 508 780 (1) 517 008
Notes
1. Comparatives have been reclassified. Refer to note 20.
2. Other includes client liabilities under acceptances and working
capital solutions.
3. IMPAIRMENT LOSSES ON LOANS AND ADVANCES
2011 2010(1)
(Audited) (Audited) Change
Rm Rm %
Balance at the beginning of the 13 902 13 158 6
year
Amounts written off during the (6 493) (5 219) (24)
year
Foreign exchange differences 1 (2) >100
Interest on impaired assets (refer (1 173) (764) (54)
to note 8.1)
6 237 7 173 (13)
Impairments raised during the year 5 894 6 729 (12)
Balance at the end of the year 12 131 13 902 (13)
Comprising:
Identified impairments 11 306 12 949 (13)
Unidentified impairments 825 953 (13)
12 131 13 902 (13)
3.1 Statement of comprehensive
income charge for the year ended
31 December
Impairments raised during the year 5 894 6 729 (12)
Identified impairments 6 015 6 919 (13)
Unidentified impairments (121) (190) 36
Recoveries of loans and advances (813) (724) (12)
previously written off
5 081 6 005 (15)
Note
(1) Comparatives have been reclassified. Refer to note 20.
4. NON-PERFORMING LOANS
2011
(Unaudited)
Expected
recoveri
es and Total
Outstandi fair Net identifie
ng value of exposur d
balance collater e impairmen
al t
Rm Rm Rm Rm
Cheque accounts 184 52 132 132
Credit cards 2 013 713 1 300 1 300
Instalment credit agreements 2 645 1 370 1 275 1 275
Microloans 348 76 272 272
Mortgages 23 590 19 558 4 032 4 032
Personal loans 1 362 538 824 824
Retail Banking 30 142 22 307 7 835 7 835
Cheque accounts 749 432 317 317
Commercial Asset Finance 932 395 537 537
Commercial Property Finance 1 894 1 354 540 540
Term loans 975 766 209 209
Absa Business Bank 4 550 2 947 1 603 1 603
Absa Capital 844 405 439 439
Non-performing loans 35 536 25 659 9 877 9 877
Non-performing loans ratio (%) 6,9
2010(1)
(Unaudited)
Expected
recoveri
es and Total
Outstandi fair Net identifie
ng value of exposur d
balance collater e impairmen
al t
Rm Rm Rm Rm
Cheque accounts 220 110 110 110
Credit cards 2 822 797 2 025 2 025
Instalment credit agreements 3 058 1 776 1 282 1 282
Microloans 445 84 361 361
Mortgages 25 642 20 740 4 902 4 902
Personal loans 1 413 442 971 971
Retail Banking 33 600 23 949 9 651 9 651
Cheque accounts 880 448 432 432
Commercial Asset Finance 1 082 429 653 653
Commercial Property Finance 2 483 2 032 451 451
Term loans 1 047 760 287 287
Absa Business Bank 5 492 3 669 1 823 1 823
Absa Capital 549 208 341 341
Non-performing loans 39 641 27 826 11 815 11 815
Non-performing loans ratio (%) 7,6
Note
1. Comparatives have been reclassified. Refer to note 20.
5. DEPOSITS DUE TO CUSTOMERS
2011 2010(1) 2009(1)
(Audited) (Audited) Change (Audited
)
Rm Rm % Rm
Call deposits 55 783 54 707 2 61 995
Cheque account deposits 134 505 117 274 15 103 110
Credit card deposits 1 884 1 830 3 1 868
Fixed deposits 125 273 114 180 10 106 886
Foreign currency deposits 8 947 9 661 (7) 9 011
Notice deposits 28 500 11 365 >100 10 293
Other(2) 2 771 3 702 (25) 7 618
Repurchase agreements with non- 8 734 7 035 24 1 712
banks
Savings and transmission 74 563 67 844 10 64 717
deposits
440 960 387 598 14 367 210
Notes
1. Comparatives have been reclassified. Refer to note 20.
2. Other includes partnership contributions received, deposits due on
structured deals, preference investments on behalf of customers and
unclaimed deposits.
6. DEBT SECURITIES IN ISSUE
2011 2010
(Audited) (Audited) Chang
e
Rm Rm %
Abacas - Commercial paper issued and - 1 789 (100)
floating rate notes
Credit linked notes 8 976 6 360 41
Floating rate notes 69 553 75 740 (8)
Liabilities arising from securitised SPEs 4 218 4 216 0
Negotiable certificates of deposit 30 214 64 271 (53)
Promissory notes 1 550 1 811 (14)
Structured notes and bonds 1 451 1 220 19
Senior notes 14 300 9 138 56
130 262 164 545 (21)
7. BORROWED FUNDS
Subordinated callable notes
The subordinated debt instruments listed
below qualify as secondary capital in terms
of the Banks Act No 94 of 1990 (as
amended).
Interest rate Final maturity
date
8 75% 1 September 1 500 1 500 -
2017
8 80% 7 March 2019 1 725 1 725 -
8 10% 27 March 2020 2 000 2 000 -
10 28% 3 May 2022 600 600 -
Three-month JIBAR + 2 10% 3 May 2022 400 400 -
CPI-linked notes fixed at the following
coupon rates:
6 25% 31 March 2018 1 886 1 886 -
6 00% 20 September 2019 3 000 3 000 -
5 50% 7 December 2028 1 500 1 500 -
Accrued interest 1 157 826 40
Fair value adjustment 283 212 33
14 051 13 649 3
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
for the year ended 31 December
8. NET-INTEREST INCOME
8.1 Interest and similar income
2011 2010
(Audited) (Audited) Change
Rm Rm %
Interest and similar income is earned
from:
Cash, cash balances and balances with 159 103 54
central banks
Fair value adjustments on hedging 1 063 1 023 4
instruments
Investment securities 390 495 (21)
Loans and advances to banks 991 1 234 (20)
Other 836 954 (12)
Reverse repurchase agreements 155 280 (45)
Loans and advances to customers 43 852 48 316 (9)
Cheque accounts 2 947 3 162 (7)
Corporate overdrafts and specialised 664 1 254 (47)
finance loans
Credit cards 2 991 2 998 (0)
Foreign currency loans 177 252 (30)
Instalment credit agreements 5 577 6 095 (8)
Interest on impaired financial assets 1 173 764 54
(refer to note 3)
Loans to associates and joint ventures 417 486 (14)
Microloans 544 706 (23)
Mortgages 22 062 25 071 (12)
Other(1) 412 943 (56)
Overnight finance 584 640 (9)
Personal and term loans 3 649 3 225 13
Preference shares 619 693 (11)
Wholesale overdrafts 2 036 2 027 0
Other 484 87 >100
Statutory liquid asset portfolio 4 282 2 983 44
51 221 54 241 (6)
Note
(1)Includes items such as interest on factored debtors` books.
8.2 Interest expense and similar charges
2011 2010
(Audited) (Audited) Change
Rm Rm %
Interest expense and similar charges are
paid on:
Borrowed funds 1 350 1 586 (15)
Debt securities in issue 9 602 12 786 (25)
Deposits due to customers 15 636 17 204 (9)
Call deposits 3 082 3 237 (5)
Cheque account deposits 2 761 3 196 (14)
Credit card deposits 10 13 (23)
Fixed deposits 6 315 7 197 (12)
Foreign currency deposits 102 142 (28)
Notice deposits 777 457 70
Other 494 609 (19)
Savings and transmission deposits 2 095 2 353 (11)
Deposits from banks 410 273 50
Call deposits 309 177 75
Fixed deposits 98 62 58
Other 3 34 (91)
Fair value adjustments on hedging (472) (1 116) 58
instruments
Interest incurred on finance leases 85 108 (21)
Other 181 60 >100
26 792 30 901 (13)
9. NON-INTEREST INCOME
9.1 Fee and commission income
Asset management and other related fees 81 105 (23)
Consulting and administration fees 520 510 2
Credit-related fees and commissions 12 672 11 800 7
Cheque accounts 3 334 3 198 4
Credit cards(1)(2) 1 094 883 24
Electronic banking 4 095 3 828 7
Other(3) 1 762 1 474 20
Savings accounts 2 387 2 417 (1)
Insurance commission received 901 950 (5)
Merchant income(2) 1 185 1 055 12
Other 256 299 (14)
Pension fund payment services 484 497 (3)
Project finance fees 222 209 6
Trust and other fiduciary services 1 101 1 029 7
Portfolio and other management fees(3) 849 783 8
Trust and estate income 252 246 2
17 422 16 454 6
Fee and commission expense
Cheque processing fees (171) (173) 1
Insurance commission paid (877) (867) (1)
Other(2) (659) (524) (26)
Transaction-based legal fees (229) (192) (19)
Trust and other fiduciary service (51) (122) 58
fees(2)(4)
Valuation fees (142) (185) 23
(2 129) (2 063) (3)
Net fee and commission income 15 293 14 391 6
Included above are net fees and commissions linked to financial
instruments not at fair value to the value of R6 940 million (2010: R6
571 million).
Notes
1. Includes acquiring and issuing fees.
2. During the year under review, merchant income, trust and other
fiduciary service fees have been disclosed in order to achieve fair
presentation. This resulted in a reclassification of comparative
information.
3. Includes service, credit-related fees, commission on mortgage loans
and foreign exchange transactions.
4. During the year under review, debt collection fees have been included
in trust and other fiduciary service fees. This resulted in a
reclassification of comparative information.
9.2 Gains and losses from banking and trading activities(1)
2011 2010
(Audited) (Audited) Change
Rm Rm %
Associates and joint ventures - 87 (100)
Dividends received - 45 (100)
Profit realised on disposal - 42 (100)
Net gains on investments 437 88 >100
Debt instruments 29 26 12
Equity instruments 428 154 >100
Available-for-sale unwind from reserves (20) (92) 78
Net trading result 2 627 1 789 47
Net trading income excluding the impact of 2 571 1 689 52
hedge accounting
Ineffective portion of hedges 56 100 (44)
Cash flow hedges 33 44 (25)
Economic hedges 30 71 (58)
Fair value hedges (7) (15) 53
Other (470) 385 >(100)
2 594 2 349 10
Net gains on investments comprise debt and equity instruments designated
at fair value through profit or loss and available for sale unwind from
reserves.
Net trading result comprises gains and losses from instruments designated
at fair value through profit or loss as well as gains and losses from
instruments classified as held for trading.
The net trading income of R2 571 million (2010: R1 689 million), consists
of the following:
- Losses on financial instruments designated at fair value through profit
or loss of R851 million (2010: R1 061 million).
- Gains on financial instruments held for trading of R3 422 million
(2010: R2 750 million).
Financial instruments designated at fair value through profit or loss
consist of:
- Net gains of R534 million (2010: R705 million) on financial assets
designated at fair value through profit or loss.
- Net losses of R1 385 million (2010: R1 766 million) relating to
financial liabilities designated at fair value through profit or loss.
Other includes gains and losses from instruments designated at fair value
through profit or loss as well as gains and losses from instruments
classified as held for trading.
- Gains on financial instruments designated at fair value through profit
or loss of R6 million (2010: R565 million).
- Losses on financial instruments held for trading of R476 million (2010:
R180 million).
Note
1. During the year under review, the presentation of "Gains and losses
from banking and trading activities" has been amended to align with
market practice and improve the quality of disclosure to the market. This
resulted in a reclassification of comparative information.
9.3 Gains and losses from investment
activities(1)
2011 2010
(Audited) (Audited) Change
Rm Rm %
Available-for-sale unwind from reserves 1 0 >100
Net gains on investments from insurance 886 820 8
activities
Policyholder investment contracts 511 214 >100
Policyholder insurance contracts 173 234 (26)
Shareholder funds 202 372 (46)
Other 79 64 23
966 884 9
Net gains on investments from insurance activities comprise cash, debt
and equity instruments designated at fair value through profit or loss as
well as gains and losses from instruments held for trading.
Net gains on investments from insurance activities of R886 million (31
December 2010: R820 million) consist of the following:
- Gains on financial instruments designated at fair value through profit
or loss of R880 million (31 December 2010: R796 million).
- Gains on financial instruments held for trading of R6 million (31
December 2010: R24 million).
Other includes gains and losses from instruments designated at fair value
through profit or loss.
Note
1. During the year under review, the presentation of "Gains and losses
from investment activities" has been amended to align with market
practice and improve the quality of disclosure to the market. This
resulted in a reclassification of comparative information.
10. OPERATING EXPENDITURE
10.1 Operating expenses
2011 2010
(Audited) (Audited) Change
Rm Rm %
Amortisation of intangible assets 289 165 75
Auditors` remuneration 166 159 4
Cash transportation 726 729 (0)
Depreciation 1 261 1 147 10
Equipment costs 224 271 (17)
Information technology(1) 2 241 2 085 7
Investment property charges 41 4 >100
Change in fair value of investment 41 0 100
properties
Other 0 4 (100)
Marketing costs 1 036 1 070 (3)
Operating lease expenses on properties 1 018 978 4
Other(2)(3) 1 562 1 871 (17)
Printing and stationery 253 272 (7)
Professional fees(1) 1 076 1 096 (2)
Property costs(3) 1 120 866 29
Staff costs 13 642 12 537 9
Bonuses 1 285 1 101 17
Current service costs on post-retirement 772 635 22
benefits
Other(4) 487 528 (8)
Salaries 10 379 9 707 7
Share-based payments 467 297 57
Training costs 252 269 (6)
Telephone and postage 803 820 (2)
25 458 24 070 6
Notes
1. Both lines include research and development costs totalling R101
million (2010: R133 million).
2. Includes accommodation, travel and entertainment costs.
3. During the year under review, property costs were moved from other and
disclosed separately due to the significance thereof. This resulted in a
reclassification of comparative information.
4. Includes recruitment costs, membership fees to professional bodies,
staff parking, redundancy fees, study assistance, staff relocation and
refreshment costs.
10.2 Other impairments
2011 2010
(Audited) (Audited) Change
Rm Rm %
Financial instruments 5 37 (86)
Amortised cost 5 12 (58)
Available-for-sale - 25 (100)
Other 47 71 (34)
Computer software development costs - 4 (100)
Equipment - 13 (100)
Goodwill 28 - 100
Investments in associates and joint (2) 29 >(100)
ventures
Repossessed properties 21 25 (16)
52 108 (52)
11. HEADLINE EARNINGS
2011 2010
(Audited) (Audited) Net
Gros Net Gros Net change
s s
Rm Rm Rm Rm %
Headline earnings(1) are determined
as follows:
Profit attributable to ordinary 9 674 8 118 19
equity holders of the Group
Total headline earnings adjustment: 45 (77) >100
IFRS 3 - Goodwill impairment and 28 28 (72) (72) >100
(gain on bargain purchase)
IAS 16 - Profit on disposal of (33) (30) (41) (37) 19
property and equipment
IAS 28 and 31 - Headline earnings (0) (0) (1) (1) 97
component of share of post-tax
results of associates and joint
ventures
IAS 28 and 31 - Profit on disposal of - - (42) (42) 100
investments in associates and joint
ventures
IAS 28 and 31 - Impairment (2) (1) 29 21 >(100)
(reversal)/charge of investments in
associates and joint ventures
IAS 36 - Impairment of equipment - - 13 9 >(100)
IAS 38 - Impairment of intangible 2 1 4 3 (67)
assets
IAS 39 - Release of available-for- 20 14 92 66 (79)
sale reserves
IAS 39 - Impairment of available-for- - - 25 18 (100)
sale assets
IAS 40 - Change in fair value of 39 33 (50) (42) >100
investment properties
Headline earnings / diluted headline 9 719 8 041 21
earnings
Headline earnings per share (cents) 1 1 21
355,9 122,6
Diluted headline earnings per share 1 1 21
(cents) 350,0 115,7
Note
(1)The net amount is reflected after taxation and non-controlling
interest.
12. DIVIDENDS PER SHARE
2011 2010
(Audited) (Audited) Change
Rm Rm %
Dividends paid to ordinary equity holders
during the year
15 February 2011 final dividend number 49 1 652 1 580 5
of 230 cents per ordinary share (16
February 2010: 220 cents)
2 August 2011 interim dividend number 50 2 098 1 616 30
of 292 cents per ordinary share (4 August
2010: 225 cents)
Dividends paid on treasury shares held by (6) (5) (20)
Absa Group subsidiaries
3 744 3 191 17
Dividends paid to ordinary equity holders
relating to income for the year
2 August 2011 interim dividend number 50 2 098 1 616 30
of 292 cents per ordinary share (4 August
2010: 225 cents)
15 February 2012 final dividend number 51 2 815 1 652 70
of 392 cents per ordinary share (15
February 2011: 230 cents)
Dividends paid on treasury shares held by (2) (3) 33
Absa Group subsidiaries
4 911 3 265 50
Note
The STC payable by the Group in respect of the final dividend approved
and declared subsequent to the reporting date amounts to R282 million
(2010: R 165 million). No provision has been made for this dividend and
the related STC in the financial statements at the reporting date in
accordance with IFRS.
Dividends paid to non-controlling
preference equity holders during the year
15 February 2011 final dividend number 10 143 162 (12)
of 2 887 6 cents per preference share (16
February 2010: 3 280 3 cents)
2 August 2011 interim dividend number 11 141 158 (11)
of 2 858 3 cents per preference share (4
August 2010: 3 197 5 cents)
284 320 (11)
Dividends paid to non-controlling
preference equity holders relating to
income for the year
2 August 2011 interim dividend number 11 141 158 (11)
of 2 858 3 cents per preference share (4
August 2010: 3 197 5 cents)
10 February 2012 final dividend number 12 140 143 (2)
of 2 827,2 cents per preference
share (15 February 2011: 2 887 6 cents)
281 301 (7)
Notes
1. The STC payable by the Group in respect of the final dividend
approved and declared subsequent to the reporting date amounts to R14
million (2010: R 14 million). No provision has been made for this
dividend and the related STC in the financial statements at the
reporting date in accordance with IFRS.
2. In 2007, the Minister of Finance announced a two-phase approach to
STC reform which included the reduction of the STC tax rate to 10% and
the replacement of STC with a new dividend tax on shareholders (dividend
tax). When the dividend tax comes into effect on 1 April 2012, the tax
will cease to be levied at a company level, and will instead be levied
on the shareholders who received the dividends.
Unutilised STC credits at the end of 2011 will be utilised against the
STC payable on the final dividend after 31 December 2011. Before the new
withholding dividend tax comes into effect, deferred tax assets relating
to unutilised STC credits up to 31 March 2012 will be utilised.
CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
as at 31 December
13. ACQUISITIONS AND DISPOSALS
The following interests were acquired/disposed of during the year under review:
13.1 Subsidiaries and business combinations
Absa Financial Services Africa Holdings Proprietary Limited (AFS Africa
Holdings), originally a dormant company, became operational in January 2011 as
the holding company for Absa Financial Services Limited`s African operations.
AFS Africa Holdings is a wholly-owned subsidiary of Absa Financial Services
Limited which in turn is a wholly-owned subsidiary of the Group.
Absa Life Botswana (Proprietary) Limited (Absa Life Botswana) was established in
Botswana as a wholly-owned subsidiary of AFS Africa Holdings during 2010. Absa
Life Botswana only became operational during March 2011. It provides credit life
and funeral policies. Non-underwritten life products were introduced in the
second half of the year and efforts will continue to enter the Group schemes
market. Absa Life Botswana has a strong working relationship with Barclays Bank
Botswana and its branches.
The Group acquired 76% of the units in the Absa Property Equity Fund (APEF) for
R211 million during April 2011, and as a result, has taken on a majority share
of the risks and rewards of the fund. The net assets acquired was R211 million.
APEF operates as a special purpose entity specifically for the investment in
community upliftment projects and is consolidated in terms of SIC 12. The APEF
was disposed of in 2010 and reacquired in 2011. Since acquisition, the APEF
contributed a net profit before tax of R13 million and revenue of R10 million to
the Group for the period 1 April 2011 to 31 December 2011. If the acquisition
occurred on 1 January 2011, the Group`s revenue would have been R17 million
higher and the net profit before tax for the year would have been R18 million
higher.
Through its AFS Africa Holdings the Group acquired a 100% stake in Global
Alliance Seguros, S.A (Global Alliance) for R117 million during September 2011.
Global Alliance is one of the largest insurance providers in Mozambique and has
recently launched a life offering. Net assets acquired in the acquisition was
R94 million with goodwill raised of R23 million. Since acquisition of Global
Alliance, Global Alliance has contributed a net profit before tax of R16 million
and revenue of R31 million to the Group for the period 1 September 2011 to 31
December 2011. If the acquisition occurred on 1 January 2011, the Group`s
revenue would have been R86 million higher and the net profit before tax for the
year would have been R39 million higher. The acquisition is strategically
attractive in that it will allow Absa Financial Services to progress its African
expansion objectives by entering the market in Mozambique with immediate scale
and provide a platform for growth. As at the acquisition date, the accounting
for the business combination its determined provisionally since the fair values
of the identifiable assets and liabilities are in the process of being
finalised, pending the finalisation of due diligence. Acquisition-related costs
amounted to R3 million in the statement of comprehensive income.
During October 2011, the Group acquired the operations of Takafol South Africa
Proprietary Limited (Takafol), an underwriting management agent for R3 million.
Absa Insurance Company Limited underwrote the Islamic insurance policies
administered by Takafol. Takafol is the sole provider of Islamic insurance
products in South Africa. The integration of Takafol into the Group will provide
synergies with Absa Islamic Banking, expand the Group`s Islamic Banking product
offerings and allowing the Group to progress its African expansion objectives.
The Group subscribed for additional shares in Barclays Bank Mozambique S.A.
(BBM) at a total consideration of R268 million in terms of a rights issue during
July 2010. The 12 016 200 additional shares acquired during 2010 increased the
effective interest held from 80% to 95,85% at the time. The non-controlling
shareholders were granted options until 18 June 2011 to acquire their pro-rata
shares in terms of the rights issue from the Group at the original subscription
price of Mt 100 plus interest equal to 17,85% per annum. Interest was to accrue
from the date on which Absa made payment of the subscription price. None of the
non-controlling shareholders exercised their rights in terms of the options
granted upon expiry of the options by 18 June 2011. The term of the options were
not extended. The final effective interest of the Group remained at 95,85%.
The Group together with two other parties have a shareholding in Barrie Island
Investments Proprietary Limited (Barrie Island). During January 2011, the Group
entered into an agreement to purchase an additional 30% of the shares in Barrie
Island from another shareholder who wished to exit the arrangement. Following
this purchase, the Group owns 70% of the shares of Barrie Island. At the
acquisition date, the investment was recognised at R nil million. A fair value
adjustment of R3 million was processed as a loss in the statement of
comprehensive income when the additional shares in Barrie Island were acquired.
Net liabilities incurred in the further acquisition totalled R3 million with
goodwill raised of R3 million. Barrie Island holds property in Alberton. The
property is zoned for commercial and residential property. The goodwill in
Barrie Island has been impaired because Barrie Island has been consistently
making losses and is not expected to be profitable in the near future. Since the
further acquisition, Barrie Island had no revenue and profit before tax impact
to the Group for the period to 31 December 2011.
The partnership in the IFU Property Fund was dissolved during the year under
review. Overlook at Sugarloaf Incorporated (a new legal entity incorporated in
the
United States of America) was established to replace the IFU Property Fund. This
did not affect the Group`s overall statement of financial position.
During the year under review, the Group sold certain exposures to Commissioner
Street No. 4 (RF) Limited (Commissioner Street 4), a special purpose entity
(SPE) established by the Group. Commissioner Street 4 issued various classes of
notes to investors.
The following table summarises the significant acquisition-date fair values of
the assets and liabilities acquired in the above business combination
transactions:
APEF Barrie Island Global
Alliance
(Audited) (Audited) (Audited)
Class of Rm Rm Rm
asset/(liability)
Cash, cash balances 0 0 38
and balances with
central banks
Other assets 1 40 91
Investment securities 277 - -
Intangible assets - - 72
Investment properties - - 28
Property and - - 24
equipment
Deferred tax asset/ - 1 (20)
(liabilities)
Other liabilities (0) (50) (139)
Fair value of - 3 -
existing interest
Non-controlling (67) 3 -
interest
Net assets acquired/ 211 (3) 94
(liabilities
incurred)
Cash outflow on 211 0 117
acquisition
Fair value of net (211) 3 (94)
(assets acquired)/
liabilities incurred
Goodwill - 3 23
Total cash and cash 0 0 38
equivalents acquired
A full list of subsidiaries as at 31 December 2011 is available, on
request, at the registered address of the Group.
13.2 Associates and joint ventures
The following interests were disposed of during the year under review:
Sekunjalo Investments Limited was classified as an "equity accounted"
associate held by Absa Capital and Absa Business Bank. Absa Capital`s
investment was disposed of and the remaining investment held by Absa
Business Bank was transferred to investment securities.
14. RELATED PARTIES
Barclays Bank PLC owns 55,5% (2010: 55,5%) of the ordinary shares in the
Group. The remaining 44,5% (2010: 44,5%) of the shares are widely held on
the JSE.
The following are defined as related parties of the Group:
- key management personnel;
- the parent company;
- subsidiaries;
- associates joint ventures and retirement benefit funds;
- an entity controlled/jointly controlled or significantly influenced by
any individual referred to above;
- post-employment benefit plans for the benefit of employees or any
entity that is a related party of the Group; and
- children and/or dependants and spouses or partners of the individuals
referred to above.
IAS 24 requires the identification of key management personnel who are
individuals responsible for planning directing and controlling the
activities of the entity including directors. Key management personnel
are defined as executive and non-executive directors and members of the
Group Executive Committee (Exco).
14.1 Transactions with key management personnel and entities controlled
by key management
A number of banking and insurance transactions are entered into with key
management personnel in the normal course of business under terms that
are no more favourable than those arranged with third parties. These
include loans deposits and foreign currency transactions. The related
party transactions outstanding balances at year-end and related
expenses and income with related parties for the year are as follows:
2011 2010 Change
(Audited) (Audite
d)
Rm Rm %
Balances
Loans 624 25 >100
Deposits 33 25 32
Guarantees issued by the Group 79 70 13
Other investments 81 68 19
Loans include mortgages, asset finance transactions, overdraft and other
credit facilities. Loans to key management personnel are provided on the
same terms and conditions as loans to employees of the Group, including
interest rates and collateral requirements.
In addition to the specific guarantees, a number of key management
personnel and entities controlled by key management personnel have
unlimited surety with the Group. There were no bad debts expenses and
provision for bad debts that related to balances with key management
personnel.
2011 2010 Change
(Audited) (Audited
)
Rm Rm %
Transactions
Interest income 56 2 >100
Interest expense 1 1 -
Insurance premiums paid 0,41 0,38 8
Insurance claims received 0,17 0,28 (39)
Key management personnel compensation
Executive directors
Post-employment benefit contributions 1 1 -
Salaries and other short-term benefits 33 38 (13)
Share-based payments 27 17 59
Termination benefits - 10 (100)
61 66 (8)
Other key management personnel
Post-employment benefit contributions 2 2 -
Salaries and other short-term benefits 42 43 (2)
Share-based payments 36 33 9
Termination benefits 3 - 100
83 78 6
14.2 Balances and transactions with parent company and fellow
subsidiaries(1), associates and joint ventures
Parent company(2) Fellow
subsidiaries(3)
2011 2010 2011 2010
(Audited) (Audited) (Audite (Audite
d) d)
Rm Rm Rm Rm
Balances
Loans and advances to banks 41 065 15 261 188 412
Derivative assets 10 254 9 079 0 65
Nominal value of derivative 637 611 489 895 608 3 507
assets
Other assets 338 498 - 54
Investment securities 499 581 - -
Deposits from banks (5 784) (5 821) - (261)
Derivative liabilities (10 488) (8 999) (72) (7)
Nominal value of derivative (462 870) (375 175) (1 441) (292)
liabilities
Other liabilities (1 167) (267) (52) -
Transactions
Interest and similar income (111) (80) 2 -
Interest and similar expense 67 36 - -
Net fee and commission - - (12) -
income
Gains and losses from (136) 1 646 - -
banking and trading
activities
Other operating income (152) (42) - -
Operating expenditure 115 (252) 152 279
Dividends paid 2 082 1 775 - -
Trade balances must be settled in accordance with market conventions
applicable to the underlying transaction. Non-trade balances must be
settled by the close of the month immediately following the month in
which the transaction occurred. Further, settlement must be in the
currency required by the fellow subsidiary receiving the settlement. In
exceptional cases it may be impractical or inefficient to settle
balances monthly. In such cases the unsettled balances must be
explicitly agreed monthly in writing, and full settlement must be made
at least quarterly.
There were no bad debts expenses and provisions for bad debts that
related to balances and transactions with the parent company, fellow
subsidiaries, associates and joint ventures.
Notes
1. Debit amounts are shown as positives; credit amounts are shown as
negatives.
2. Absa Group Limited is a subsidiary of Barclays Bank PLC, which has
majority equity interest in the Group.
3. Fellow subsidiaries are those subsidiaries of Barclays Bank PLC.
Balances and transactions between the Group and its subsidiaries have
been eliminated on consolidation and are not disclosed in this note.
15. ASSETS UNDER MANAGEMENT AND ADMINISTRATION (1)
2011 2010
(Audited) (Audited) Change
Rm Rm %
Alternative asset management and 30 486 18
exchange traded funds 25 904
Deceased estates 2 166 2 153 1
Other 10 505 10 898 (4)
Participation bond schemes 2 544 2 315 10
Portfolio management 26 792 21 145 27
Private equity 728 732 (1)
Trusts 6 720 6 482 4
Unit trusts 133 245 125 320 6
213 186 194 949 9
16. FINANCIAL GUARANTEE CONTRACTS
Financial guarantee contracts(2) 356 599 (41)
17. COMMITMENTS
Authorised capital expenditure
Contracted but not provided for(3) 283 1 061 (73)
Operating lease payments due(4)
No later than one year 1 106 1 066 4
Later than one year and no later than 2 136 2 059 4
five years
Later than five years 585 482 21
3 827 3 607 6
Sponsorship payments due(5)(6)
No later than one year 209 305 (31)
Later than one year and no later than 299 508 (41)
five years
508 813 (38)
18. CONTINGENCIES
2011 2010
(Audited) (Audited) Change
Rm Rm %
Guarantees(7) 13 226 11 051 20
Irrevocable debt facilities(8) 46 189 46 495 (1)
Irrevocable equity facilities(8) 494 750 (34)
Letters of credit 5 190 4 979 4
Other 10 44 (77)
65 109 63 319 3
Notes
1. Comparatives have been restated for the inclusion of assets managed
by Absa Capital on behalf of clients, exchange-traded funds and
alternative asset management funds, in order to align assets under
management and administration to current market practice.
2. Represents the maximum exposure, which is not necessarily the
measurement recognised on the statement of financial position in
accordance with IFRS.
3. The Group has capital commitments in respect of computer equipment
and property development. Management is confident that future net
revenue and funding will be sufficient to cover these commitments.
4. The operating lease commitments comprise a number of separate
operating leases in relation to properties and equipment, none of which
is individually significant to the Group. Leases are negotiated for an
average term of three to five years and rentals are renegotiated
annually.
5. During the year under review, additional information has been
included for sponsorships. This resulted in a reclassification of
comparative information.
6. The Group has sponsorship commitments in respect of sports, arts and
culture sponsorships. Certain sponsorship agreements in place expire in
2012 and are under review by management for renewal in the foreseeable
future.
7. Guarantees include performance and payment guarantee contracts.
8. Irrevocable facilities are commitments to extend credit where the
Group does not have the right to terminate the facilities by written
notice. Commitments generally have fixed expiry dates. Since commitments
may expire without being drawn upon, the total contract amounts do not
necessarily represent future cash requirements.
19. SEGMENT PERFORMANCE
19.1 Condensed consolidated profit contribution by segment
for the year ended 31 December
2011 2010(1)
(Audited) (Audited) Change
Rm Rm %
Banking operations
Retail Banking 4 179 3 258 28
Home Loans 516 196 >100
Vehicle and Asset Finance 403 236 71
Card 1 758 1 483 19
Personal Loans 720 515 40
Retail Bank 782 828 (6)
Absa Business Bank 2 895 2 866 1
Absa Capital 1 496 1 612 (7)
Corporate centre (301) (397) 24
Capital and funding centres 315 (192) >100
Non-controlling interest - preference (283) (319) 11
shares(2)
Total banking 8 301 6 828 22
Financial Services 1 373 1 290 6
Profit attributable to ordinary equity 9 674 8 118 19
holders of the Group
Headline earnings adjustments 45 (77) >100
Headline earnings 9 719 8 041 21
Notes
1. Comparatives have been reclassified. Refer to note 20.
2. Includes the elimination of non-controlling interest - preference
shares of Retail Banking.
19.2 Condensed consolidated total revenue(1) contribution by segment
for the year ended 31 December
2011 2010(2)
(Audited) (Audited) Change
Rm Rm %
Banking operations
Retail Banking 24 640 23 090 7
Home Loans 4 064 3 531 15
Vehicle and Asset Finance 2 224 2 035 9
Card 4 970 4 601 8
Personal Loans 2 108 1 960 8
Retail Bank 11 274 10 963 3
Absa Business Bank 11 839 11 545 3
Absa Capital 5 519 5 508 0
Corporate centre (860) (827) (4)
Capital and funding centres 679 (106) >100
Total banking 41 817 39 210 7
Financial Services 4 015 3 604 11
Total revenue 45 832 42 814 7
Notes
1. Revenue includes net interest income and non-interest income.
2. Comparatives have been reclassified. Refer to note 20.
19.3 Condensed consolidated total internal revenue(1) contribution by segment
for the year ended 31 December
2011 2010(2)
(Audited) (Audited) Change
Rm Rm %
Banking operations
Retail Banking (10 660) (13 334) 20
Home Loans (12 896) (15 119) 15
Vehicle and Asset Finance (2 436) (2 753) 12
Card (633) (738) 14
Personal Loans (569) (611) 7
Retail Bank 5 874 5 887 (0)
Absa Business Bank 2 739 1 551 77
Absa Capital 9 401 12 516 (25)
Corporate centre 91 (423) >100
Capital and funding centres (1 170) (820) (43)
Total banking 401 (510) >100
Financial Services (401) 510 >(100)
Total internal revenue - - -
Notes
1. Revenue includes net interest income and non-interest income.
2. Comparatives have been reclassified. Refer to note 20.
19.4 Condensed consolidated total assets by segment
as at 31 December
2011 2010(1)
(Audited) (Audited) Change
Rm Rm %
Banking operations
Retail Banking 469 710 470 240 (0)
Home Loans 239 376 247 881 (3)
Vehicle and Asset Finance 46 500 50 385 (8)
Card 29 456 26 746 10
Personal Loans 13 489 12 887 5
Retail Bank 140 889 132 341 6
Absa Business Bank 206 051 184 326 12
Absa Capital 369 797 356 110 4
Corporate centre (368 448) (380 521) 3
Capital and funding centres 83 966 72 855 15
Total banking 761 076 703 010 8
Financial Services 25 643 22 947 12
Total assets 786 719 725 957 8
Note
(1) Comparatives have been reclassified. Refer to note 20.
20. RECLASSIFICATIONS
20.1 Some items within the statement of financial position for the years
ended 31 December 2010 and 31 December 2009 were reclassified in the
current year:
2010
(Audited)
As previously Reclassifica- Reclassifi
reported tion ed
Rm Rm Rm
Cash, cash balances and 24 361 (620) 23 741
balances with central banks
(1)
Loans and advances to banks 24 877 2 618 27 495
(2)
Other assets (2) 16 131 (3 276) 12 855
Loans and advances to 498 635 10 145 508 780
customers
Collateralised loans (2) 658
Offsetting (3) 9 487
Investment securities(1) 23 826 620 24 446
Total assets (3) 716 470 9 487 725 957
Deposits due to customers(3) 378 111 9 487 387 598
Total liabilities(3) 654 321 9 487 663 808
Total liabilities and 716 470 9 487 725 957
equity(3)
2009
(Audited)
As previously Reclassifica- Reclassifi
reported tion ed
Rm Rm Rm
Cash, cash balances and 20 597 (391) 20 206
balances with central banks
(1)
Loans and advances to banks 36 032 7 191 43 223
(2)
Other assets (2) 17 777 (7 191) 10 586
Loans and advances to 506 163 10 845 517 008
customers (3)
Investment securities (1) 29 564 391 29 955
Total assets (3) 710 796 10 845 721 641
Deposits due to customers (3) 356 365 10 845 367 210
Total liabilities (3) 654 306 10 845 665 151
Total liabilities and equity 710 796 10 845 721 641
(3)
Notes
1. Money market instruments
During the year under review, the Group has reclassified certain money market
instruments linked to investment contracts, with longer-term maturities, from
`Cash, cash balances with central bank` to `Investment securities`, to reflect
the true nature of these instruments. `Cash, cash balances and balances with
central banks` should comprise cash on hand and demand deposits which the Group
expects to be realised within 12 months after the reporting date. This has
resulted in comparatives being reclassified for 31 December 2010 and 31 December
2009 as reflected in the table above.
2. Collateralised loans
During the year under review, the Group has reclassified certain collateralised
loans previously disclosed as `Other assets` to `Loans and advances to banks`
and `Loans and advances to customers` in 2010 and to `Loans and advances to
banks` in 2009 to reflect the true nature of these trades as collateralised
loans. This has resulted in comparatives being reclassified for 31 December 2010
and 31 December 2009 as reflected in the table above.
3. Offsetting
Certain customers within the Group have agreements in place whereby interest
receivable or payable is calculated on the net balances of the cheque deposits
and cheque advances. During the year under review, the Group identified that the
related cheque account balances owed or receivable were also being offset. Given
that there is no agreement in place that allows these balances to be offset, the
Group is expected to have reflected the gross balances in terms of IAS 32.
As a result, the assets and liabilities relating to these cheque accounts were
reclassified so that these are presented on a gross basis. This has resulted in
the comparatives being reclassified for 31 December 2010 and 31 December 2009 as
reflected in the table above.
20.2 Comparatives have been reclassified for the following structure changes
made during the year:
- Absa Technology Finance Solutions Proprietary Limited was moved from Vehicle
and Asset Finance within Retail Banking to Absa Business Bank.
- Debit Card was moved within Retail Banking from Retail Bank to Card.
- Personal loan centres were moved within Retail Banking from Personal Loans to
Retail Bank.
- Absa Development Company division and Absa Development Company Holdings
Proprietary Limited were moved from Absa Business Bank to Retail Bank within
Retail Banking.
- The Group`s corporate client base was transferred from Absa Business Bank to
Absa Capital following an initiative to optimise product delivery to its
corporate clients.
Profit and dividend announcement
Salient features
- Diluted headline earnings per share (HEPS) grew 21% to 1350,0 cents.
- Total dividend of 684 cents per share, up 50%.
- Net interest margin on average interest-bearing assets widened to 4,11% from
3,94%.
- Non-interest revenue grew 10% and accounted for 46,7% of total revenue (2010:
45,5%).
- Operating expenses growth contained to 6%, improving Absa`s cost-to-income
ratio to 55,5% (2010: 56,2%).
- Loans and advances to customers declined 1% to R504 billion.
- Credit losses decreased 15% to R5 081 million, resulting in a 1,01% credit
loss ratio (2010: 1,18%).
- Return on average equity (RoE) improved to 16,4% (2010: 15,1%).
- Return on average risk-weighted assets increased to 2,35% and return on
average assets (RoA) to 1,32% (2010: 1,99% and 1,10% respectively).
- Net asset value (NAV) per share grew 11% to 8 690 cents (2010: 7 838).
- Absa Group`s Core Tier 1 capital adequacy ratio improved to 13,0% (2010:
11,7%), well above regulatory requirements.
Overview
The Group`s headline earnings increased 21% to R9 719 million (2010: R8 041
million). Diluted HEPS rose 21% to 1 350,0 cents (2010: 1 115,7 cents). Absa`s
RoE improved to 16,4%, reflecting a higher RoA of 1,32% (2010: 1,10%), offset by
reduced leverage. The Group declared a final dividend of 392 cents per share,
70% above the corresponding period, after considering regulatory changes, its
strong Core Tier 1 ratio, its strategy and growth plans, and near-term business
objectives.
Absa delivered on its key commitments for 2011, including growing revenue faster
than operating expenses. The Group`s pre-provision profit increased 9% to R20
374 million. Improved non-interest revenue growth, lower credit losses, better
cost containment and a wider net interest margin were the primary reasons for
Absa`s headline earnings growth. These drivers outweighed the impact of lower
loans and advances, and a higher effective tax rate.
Retail Banking`s 33% headline earnings growth was the principal driver of the
Group`s 21% increase. Financial Services and Absa Business Bank (ABB) increased
earnings 7% and 5% respectively. Absa Capital`s headline earnings decreased 10%
after a difficult second half.
Operating environment
South Africa`s economic growth slowed considerably in recent quarters to an
annualised 1,4% in the third quarter of 2011. Household expenditure growth has
remained one bright point, rising 3,7% on an annualised basis in the third
quarter. This is underpinned by evidence that the worst of the labour market
weakness has passed and consumers are benefiting from low interest rates and
increased real household income growth. Despite the prime rate being at the
lowest level since the 1970s, private sector credit extension remains moderate.
Household credit rose at an average of 5,7% from June through November 2011 and
corporate credit 3,6%. This modest new borrowing and income growth has reduced
household debt to disposable income from a 2008 peak of 82,7% to 75,0%, although
consumers remain vulnerable to any monetary policy tightening.
Inflation pressures mounted through 2011, as headline CPI increased from the
cyclical low of 3,2% in September 2010 to 6,1% in November 2011, which is above
the SARB target range. Growth in core inflation has been more moderate,
increasing to 3,9% despite rising food and fuel costs. Given concerns about
economic growth, the Reserve Bank has kept its policy rate at 5,5%.
Group performance
Statement of financial position
The Group`s total assets rose 8% to R787 billion at 31 December 2011, reflecting
strong second half growth in its trading portfolio assets and loans and advances
to banks. Absa`s statutory liquid asset portfolio increased 19% to R57 billion.
Loans and advances to customers
Absa`s loans and advances to customers declined by 1% to R504 billion (2010:
R509 billion). Retail Banking`s loans and advances decreased 1%, reflecting
sustained focus on risk appetite and pricing. Retail mortgages (including
Commercial Property Finance), which constitute 47% of total Group gross loans
and advances to customers, decreased 4%. Given Retail Banking`s strategy to grow
its proportion of unsecured loans, credit cards grew 4% and personal loans 7%.
Muted client demand also dampened ABB`s loans and advances, which declined 4%
due to lower Commercial Property Finance, instalment credit agreements and
wholesale overdrafts. Absa Capital`s loans and advances increased 6%, reflecting
strong growth in foreign currency loans and overnight finance.
Deposits due to customers
Absa continued to improve its liquidity, growing customer deposits 14% to R441
billion and increasing its proportion of long-term funding to 24,5%. With solid
growth in most key categories, Retail Banking`s deposits increased 9%, to
maintain its leading market share. Its proportion of high margin deposits
improved further. ABB`s deposits increased 13%, given strong growth in cheque
account and call deposits. Absa Capital`s deposits rose 18%, after solid growth
in fixed deposits and notice deposits. Deposits due to customers accounted for
72% of funding compared to 64% in 2009, while the proportion from debt
securities in issue dropped to 21% from 30%. The Group`s loans-to-deposits ratio
declined to 88% from 92%.
Net asset value
The Group`s NAV increased 11% to R62 billion, as it generated retained earnings
of R5,9 billion during the year. Absa`s NAV per share grew 11% to 8 690 cents
(2010: 7 838 cents).
Capital to risk-weighted assets
The Group`s risk-weighted assets increased 0,4% to R424 billion (2010: R423
billion). Absa maintained its strong capital levels, which remain above board
targets and regulatory requirements. At 31 December 2011, Absa Group`s Core Tier
1 and Tier 1 capital adequacy ratios were 13,0% (2010: 11,7%) and 14,1% (2010:
12,8%) respectively. The Group`s total capital ratio improved to 16,7% (2010:
15,5%). Absa Bank`s Core Tier 1 ratio increased to 12,1% (2010: 10,7%) and its
total ratio was 16,2% (2010: 14,8%). Factoring in its strong capital position
and medium-term plans, the Group was able to increase its total dividend per
share by 50%.
Statement of comprehensive income
Net interest income
Net interest income increased 5% to R24 429 million (2010: R23 340 million),
despite loans declining slightly and a 0,87% lower average prime rate during the
year. The growth stems from the Group`s improved net interest margin (4,11% from
3,94%) due to its hedging strategy, better new business pricing and lower
reliance on wholesale funding. These outweighed the negative endowment effect on
capital and deposits, competitive pricing pressure on deposits and the cost of
lengthening funding and increasing surplus liquid assets.
Credit losses
Absa`s credit impairments improved 15% to R5 081 million (2010: R6 005 million).
Retail Banking, where credit losses decreased 17% to R3 965 million, was
responsible for most of the reduction. Early cycle delinquencies improved as
lower interest rates helped consumers to recover, and the benefits of effective
collections and sound credit policy became evident. ABB`s credit losses dropped
24% to R873 million.
The Group`s credit loss ratio improved to 1,01% (2010: 1,18%). This is
noticeably below 2009`s high charge of 1,70%. Retail Banking`s credit loss ratio
declined to 1,23% (2010: 1,48%), as every category improved, particularly Absa
Card and Personal Loans. ABB`s credit loss ratio fell to 0,72% from 0,93%.
Absa`s non-performing loan coverage declined to 27,8% (2010: 29,8%), in part due
to 24% higher write-offs of impaired advances.
Non-performing loans as a percentage of loans and advances improved to 6,9%
(2010: 7,6%), due to reduced new NPLs, greater write-offs and rehabilitating
more accounts. Absa`s loans subject to debt counselling reduced to R3,4 billion
from R7,0 billion the previous year, reflecting strong collection efforts.
Non-interest income
Despite muted trading and retail client activity, Absa`s non-interest income
grew 10% to R21 403 million (2010: R19 474 million), owing to growth in targeted
areas. Net fee and commission income constituted 71% of non-interest income. It
grew 6% to R15 293 million (2010: R14 391 million), due to volume growth and
price increases. Retail Banking`s net fee and commission income rose 6%, while
ABB`s demonstrated improving momentum growing 8%. Net revenue from Financial
Services, excluding investment returns on shareholder funds, grew 14%. Absa
Capital`s net trading increased 1% to R2 166 million, despite difficult second
half conditions in fixed income. The Group sold its stake in Visa Incorporated
in 2011, recording a R30 million gain compared to a R128 million loss the prior
year. Private equity and commercial property finance revaluations accounted for
less than 1% of total non-interest revenue.
Operating expenses
The Group`s operating expenses increased 6% to R25 458 million (2010: R24 070
million), reflecting cost containment while continuing to invest in target
growth areas. Staff costs constituted 54% of the total, increasing 9% to R13 642
million. This reflected salary increases, higher bonuses and share-based
payments due to significant incentive deferrals from previous years and improved
operating performance. Non-staff costs grew just 2%, as containing discretionary
spend was a priority. Total IT-related spend grew 5% to R5,3 billion, which
represents 21% of Group costs. Absa`s cost-to-income ratio improved to 55,5%
from 56,2%.
Taxation
The Group`s taxation charge grew 23% to R4 026 million, as its effective tax
rate rose to 28,3% from 27,5%. The higher rate was mainly due to a lower
proportion of exempt income and secondary tax on companies. Absa continued to
contribute significantly to the fiscus, making cash payments of R5,7 billion in
2011.
Segmental performance
Retail Banking
Retail Banking produced strong results, growing headline earnings 33% to R4 179
million (2010: R3 137 million). This reflects solid net interest income growth,
lower credit losses and a focus on costs. Containing cost growth to 5%, which
was less than revenue growth, reduced its cost-to-income ratio to 56,7% (2010:
57,6%). Retail Banking`s credit loss ratio improved to 1,23% from 1,48%, as a
result of lower early stage delinquencies and successful collection strategies.
All business segments increased their headline earnings. While a material
recovery in secured lending drove earnings growth, superior unsecured lending
returns underpinned the division`s 27,0% returns on regulatory capital. Card`s
strong performance was a standout, growing its headline earnings 19% to R1 757
million. The Group maintained its leading share of retail deposits, customers,
branches and ATMs.
Absa Business Bank
ABB had a solid year, growing headline earnings 5% to R2 948 million (2010: R2
811 million), as it managed costs and reduced credit impairments. Operating
expenses grew 5%. Enhanced transactional capabilities, new products and reduced
revenue leakage increased fee income 8%. ABB grew its deposits 13%, contributing
materially to the Group`s improved loans-to-deposits ratio. However, competition
and lower interest rates reduced ABB`s net interest margin noticeably to 4,44%
(2010: 4,75%). Book run-off, muted client credit demand and Absa`s targeted
commercial property finance growth saw its loans and advances decrease 4%. ABB`s
credit impairments dropped 24%, improving its credit loss ratio to 0,72% from
0,93%. ABB`s return on regulatory capital declined slightly to 19,5%.
Absa Capital
Absa Capital experienced a challenging year, particularly in the second half.
Its headline earnings decreased 10% to R 1 495 million (2010: R 1 659 million)
on flat revenues. Markets revenue declined 3% due to reduced market liquidity
and a flat interest rate environment. Fixed Income and Credit the largest
components of this, fell 7%. Foreign Exchange and Commodities, a key focus area,
partially offset this by growing 11%. Investment Banking revenue decreased 20%.
Growth of 44% in its fee business was offset by a decline in the margin business
due to the unwind of highly structured on balance sheet financing. Private
Equity earnings continued to improve, benefiting from profitable realisations
and positive valuations. Wealth`s net revenue increased 33%, reflecting lower
credit losses and higher transactional activities. Absa Capital`s return on
regulatory capital decreased to 17,1% (2010: 18,1%).
Financial Services
Net operating income increased 21% to R1 686 million (2010: R1 390 million). The
drivers of the strong operational performance included 18% gross revenue growth,
a modest 5% increase in claims paid and an improved cost efficiency ratio.
Gross and net insurance premiums grew 18% and 13% respectively, while non-
insurance income increased 16%. Assets under management increased 3% to R168
billion, in spite of a reduction in assets invested in the dividend income fund.
Operating expenditure increased 12%, as AFS established African operations in
Botswana and Mozambique and continued to invest heavily in core scalable
operating platforms in anticipation of further growth. Investment income on
shareholder funds decreased 40% in a low interest rate environment, as a result
of de-risking its shareholder funds and poor performance of equity markets. This
resulted in 7% headline earnings growth. Its RoE declined to 32,0% from 34,8%,
reflecting additional capital retained to expand into Africa. Meanwhile its
return on embedded value was 37,1% (2010: 39,8%).
Prospects
Global economic conditions remain challenging. Key structural weaknesses in the
Eurozone still need to be addressed, the US economy faces the uncertainty of an
election year and emerging markets look to navigate the downside risks created
in developed countries. However, Sub-Saharan Africa`s GDP is expected to grow
5,5% this year.
For South Africa, the external environment is unlikely to support stronger
growth and we expect the economy to grow just 2,8%. Slightly higher inflation
will place some pressure on real household income and the labour market is
expected to remain weak, which suggests consumers will remain vulnerable and
corporates cautious in their business decisions. We expect the Reserve Bank to
increase interest rates in the fourth quarter, albeit at a slow pace.
Against this fragile macro backdrop, sector asset and revenue growth is likely
to remain muted. However, Absa should continue to benefit from its hedging
strategy. Containing costs remains a priority and management is committed to
keeping cost growth below revenue growth again this year. Together with an
expected credit loss ratio of below 1%, the Group`s returns should improve
further. Absa will continue to work closely with Barclays to capture the
opportunities the combined franchises offer in the rest of Africa. Absa remains
well positioned for expected regulatory changes with a strong capital position
and will continue to improve its liquidity.
Basis of presentation and changes in accounting policies
The Group`s condensed results have been prepared in accordance with the
recognition and measurement requirements of International Financial Reporting
Standards (IFRS). The disclosures comply with International Accounting Standard
(IAS) 34.
The preparation of financial information requires the use of estimates and
assumptions about future conditions. The accounting policies that are deemed
critical to the Group`s results and financial position, in terms of the
materiality of the items to which the policy is applied, and which involve a
high degree of judgement including the use of assumptions and estimation, are
impairment of loans and advances, goodwill impairment, valuation of financial
instruments, impairment of available-for-sale financial assets, impairment of
investments in associates and joint ventures, deferred tax assets, consolidation
of special purpose entities (SPEs), post-retirement benefits, provisions, share-
based payments, liabilities arising from claims made under short-term insurance
contracts, liabilities arising from claims made under life-term insurance
contracts, income taxes and offsetting of financial assets and liabilities.
Changes in accounting policies
The accounting policies applied in preparing the financial results for the year
under review are the same as the accounting policies in place for the year ended
31 December 2010 except for the following:
- The Group adopted the predecessor accounting method as its accounting
policy for common control transactions. The Group previously accounted for
common control transactions in terms of IFRS 3 Business Combinations where these
transactions had economic substance. This change in accounting policy will align
the Group`s accounting policy with its ultimate parent company, Barclays PLC.
The change in accounting policy does not impact the Group`s consolidated results
and had no impact on basic and diluted earnings per share as previously
reported.
- Adoption of amendments and changes to IFRS mandatory for the 31 December
2011 financial year. These amendments, specified in the consolidated annual
financial statements, resulted in some additional disclosures being presented
but otherwise had a minimal impact on the financial results for the year under
review.
Reclassifications
- The Group has reclassified certain collateral previously disclosed as
`Other assets` to `Loans and advances to banks` and `Loans and advances to
customers` in December 2010 and to `Loans and advances in Banks` in December
2009 to reflect the true nature of these trades as collateralised loans. This
has resulted in comparatives being reclassified for 31 December 2010 (loans and
advances to banks R2 618 million, other assets (R3 276 million) and loans and
advances to customers R658 million) and 31 December 2009 (loans and advances to
banks R7 191 million, other assets (R7 191 million)).
- Certain customers within the Group have agreements in place whereby
interest receivable or payable is calculated on the net balances of the cheque
deposits and cheque advances. During the year under review, the Group identified
that the related cheque account balances owed or receivable were also being
reported on a net basis. All balances within this portfolio were reassessed for
appropriate presentation in terms of IAS 32 and the Group`s stated accounting
policies, taking into account contractual arrangements and current business
practice applied to these accounts. As a result, certain assets and liabilities
relating to these cheque accounts were reclassified so that these are presented
on a gross basis. This has resulted in the comparatives being reclassified for
31 December 2010 (loans and advances to customers R9 487 million, deposits due
to customers (R9 487 million)) and 31 December 2009 (loans and advances to
customers R10 845 million, deposits due to customers (R10 845 million)).
- The Group has reclassified certain money market assets linked to investment
contracts with longer-term maturities from `Cash, cash balances with central
banks` to `Investment securities` to reflect the true nature of these assets, as
`Cash, cash balances and balances with central banks` should comprise cash on
hand and demand deposits which the Group expects to be realised within 12 months
after the reporting date. This has resulted in comparatives being reclassified
for 31 December 2010 (cash, cash balances and balances with central banks (R620
million) and investment securities R620 million) and 31 December 2009 (cash,
cash balances and balances with central banks (R391 million) and investment
securities R391 million).
Going concern
The directors assess the Group`s future performance and financial position on an
ongoing basis and have no reason to believe that the Group will not be a going
concern in the year ahead. For this reason these condensed annual consolidated
financial statements are prepared on a going concern basis.
Events after the reporting period
The directors are not aware of any events after the reporting period of 31
December 2011 and the date of authorisation of these summarised annual
consolidated financial statements as defined in IAS 10.
Auditors` report
Ernst & Young Inc. and PricewaterhouseCoopers Inc., Absa Group Limited`s
independent auditors, have audited the consolidated annual financial statements
of Absa Group Limited from which the condensed consolidated financial results
have been derived. The auditors have expressed an unqualified audit opinion on
the consolidated annual financial statements. The condensed consolidated
financial results comprise the condensed consolidated statement of financial
position at 31 December 2011, condensed consolidated statement of comprehensive
income, condensed consolidated statement of changes in equity and condensed
consolidated statement of cash flows for the year then ended, and selected
explanatory notes, excluding items indicated as unaudited. The audit report of
the consolidated annual financial statements is available for inspection at Absa
Group Limited`s registered office.
On behalf of the board
G Griffin M Ramos
Group Chairman Group Chief Executive
Johannesburg
10 February 2012
Declaration of final ordinary dividend number 51
Shareholders are advised that a final ordinary dividend of 392 cents per
ordinary share was declared today, Friday, 10 February 2012, for the six-month
period ended 31 December 2011. This brings the total dividend for the year ended
31 December 2011 to 684 cents per share. The final ordinary dividend is payable
to shareholders recorded in the register of members of the Company at the close
of business on Friday, 30 March 2012. The directors of Absa Group confirm that
the Group will satisfy the solvency and liquidity test immediately after
completion of the dividend distribution.
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 Friday, 23 March 2012
Shares commence trading ex dividend Monday, 26 March 2012
Record date Friday, 30 March 2012
Payment date Monday, 2 April 2012
Share certificates may not be dematerialised or rematerialised between Monday,
26 March 2012 and Friday, 30 March 2012, both dates inclusive.
On Monday, 2 April 2012, the dividend will be electronically transferred to the
bank accounts of certificated shareholders who use this facility. In respect of
those who do not use this facility, cheques dated 2 April 2012 will be posted on
or about that date. The accounts of those shareholders who have dematerialised
their shares (which are held at their participant or broker) will be credited on
Monday, 2 April 2012.
On behalf of the board
D W P Hodnett
Acting Group Secretary
Johannesburg
10 February 2012
Administrative information
These audited condensed annual consolidated financial results are a summary of
the audited annual consolidated financial statements of the Group, which were
prepared by Absa Group Financial Reporting under the direction and supervision
of the Group Financial Director, DWP Hodnett CA(SA). A copy of the audited
annual financial statements will be available from 30 March 2012, either on
www.absa.co.za or, on request, at the registered address of the Group.
Absa Group Limited
Registration number: 1986/003934/06
Authorised financial services and
registered credit provider (NCRCP7)
Incorporated in the Republic of South Africa
ISIN: XAE000067237
JSE share code: ASA
Issuer code: AMAGB
Registered office
7th Floor Absa Towers West
15 Troye Street
Johannesburg, 2001
Postal address: PO Box 7735
Johannesburg, 2000
Telephone: (+27 11) 350 4000
Telefax: (+27 11) 350 4009
Email: groupsec@absa.co.za
Board of directors
Group independent non-executive directors
C Beggs, BP Connellan, YZ Cuba, SA Fakie,
G Griffin (Group Chairman), MJ Husain,
PB Matlare, TM Mokgosi-Mwantembe,
TS Munday, SG Pretorius, BJ Willemse
Group non-executive directors
AP Jenkins(1), R Le Blanc(1),
EC Mondlane Jr(2) IR Ritossa(3)
Group executive directors
DWP Hodnett (Group Financial Director),
M Ramos (Chief Executive),
LL von Zeuner (Deputy Group Chief Executive)
(1)British (2)Mozambican (3)Australian
Transfer secretary
South Africa
Computershare Investor Services
Proprietary Limited
70 Marshall Street
Johannesburg, 2001
Postal address: PO Box 61051
Marshalltown, 2107
Telephone: (+27 11) 370 5000
Telefax: (+27 11) 370 5271/2
ADR depositary
BNY Mellon
101 Barclay Street, 22W New York NY 10286
Telephone: +1 212 815 2248
Sponsor
J.P. Morgan Equities Limited
No 1 Fricker Road, Cnr. Hurlingham Road
Illovo, Johannesburg, 2196
Postal address: Private Bag X9936
Sandton, 2146
Telephone: (+27 11) 507 0300
Telefax: (+27 11) 507 0503
Auditors
PricewaterhouseCoopers Inc.
Ernst & Young Inc.
Shareholder contact information
Shareholder and investment queries about the
Absa Group should be directed to the following areas:
Group Investor Relations
AM Hartdegen (Head of Investor Relations)
Telephone: (+27 11) 350 5926
Telefax: (+27 11) 350 5924
E-mail: Investorrelations@absa.co.za
Acting Group Secretary
DWP Hodnett
Email: david.hodnett@absa.co.za
Other Contacts
Group Media Relations
J Dludlu (Head of Group Communication)
Telephone: (+27 11) 350 3221
Group Finance
JP Quinn (Group Financial Controller)
Telephone: (+27 11) 350 7565
For more information on our results refer to our website:
www.absa.co.za
Date: 10/02/2012 07:35:37 Supplied by www.sharenet.co.za
Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
