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ABSA GROUP LIMITED - ABSA GROUP: PROFIT AND DIVIDEND ANNOUNCEMENT; AUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR 31 DEC 2012

Release Date: 12/02/2013 07:30
Code(s): ASA     PDF:  
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ABSA GROUP: PROFIT AND DIVIDEND ANNOUNCEMENT; AUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS FOR 31 DEC 2012

ABSA GROUP LIMITED
Authorised financial services and registered credit provider (NCRCP7)
Registration number: 1986/003934/06
Incorporated in the Republic of South Africa
JSE share code: ASA
Issuer code: AMAGB
ISIN: ZAE000067237

(Absa, Absa Group, the Group or the Company)

ABSA GROUP LIMITED: PROFIT AND DIVIDEND ANNOUNCEMENT
AUDITED CONDENSED CONSOLIDATED FINANCIAL RESULTS
FOR THE REPORTING PERIOD ENDED 31 DECEMBER 2012
CONSOLIDATED SALIENT FEATURES
31 December
                
                                                                    2012     2011 (1)      Change
                                                                                               %
Statement of comprehensive income (Rm)
Headline earnings (2)                                              8 807       9 719         (9)
Profit attributable to ordinary equity holders                     8 393       9 674        (13)
Statement of financial position
Total assets (Rm)                                                807 939     786 719           3
Loans and advances to customers (Rm)                             528 191     504 925           5
Deposits due to customers (Rm)                                   477 427     440 960           8
Loans-to-deposits ratio (%) (3)                                     90,2        88,4
Off-statement of financial position (Rm)
Assets under management and administration                       246 950     213 186          16
Financial performance (%)
Return on average equity (RoE) (3)                                  13,6        16,4
Return on average assets (RoA) (4)                                  1,09        1,32
Return on average risk-weighted assets (RoRWA) (4)                  2,07        2,35
Operating performance (%)
Net interest margin on average interest-bearing assets (4)          3,87        4,11
Impairment losses on loans and advances as % of average loans
and advances to customers (4)      			            1,59        1,01
Non-performing loans as % of loans and advances to customers (4)     5,8         6,9
Non-interest income as % of total operating income (3)              48,5        46,7
Cost-to-income ratio (4)                                            55,2        55,5
Effective tax rate, excluding indirect taxation (3)                 27,9        28,3
Share statistics (million)
Number of ordinary shares in issue                                 718,2       718,2
Number of ordinary shares in issue (excluding treasury shares)     717,7       717,0
Weighted average number of shares in issue                         717,6       716,8
Diluted weighted average number of ordinary shares in issue        719,2       719,9
Share statistics (cents) 
Headline earnings per share                                      1 227,3     1 355,9         (9)
Diluted headline earnings per share                              1 224,6     1 350,0         (9)
Basic earnings per share                                         1 169,6     1 349,6        (13)
Diluted earnings per share                                       1 167,0     1 343,8        (13)
Dividends per ordinary share relating to income for the
reporting period (3)						     684         684           -
Dividend cover (times) (3)                                           1,8         2,0
Net asset value per share (3)                                      9 319       8 690           7
Tangible net asset value per share (3)                             8 962       8 392           7
Capital adequacy (%) (4)
  Absa Group                                                        17,4        16,7
  Absa Bank                                                         17,5        16,2
Notes
(1) Comparatives have been reclassified. Refer to note 21.
(2) After allowing for R295 million (2011: R284 million) profit attributable to preference 
    equity holders of Absa Bank Limited.
(3) These ratios have been calculated by management based on extracted audited information
     contained in the audited annual consolidated financial statements.
(4) These ratios are unaudited.




CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 31 December
                                                                    2012     2011(1)               2010(1)
                                                               (Audited)   (Audited)      Change (Audited)
                                                       Note           Rm          Rm           %        Rm
Assets
Cash, cash balances and balances with central banks               26 221      26 997         (3)    23 741
Statutory liquid asset portfolio                                  63 020      57 473          10    48 215
Loans and advances to banks                                       44 649      57 499        (22)    27 572
Trading portfolio assets                                          87 203      84 623           3    62 047
Hedging portfolio assets                                           5 439       4 299          27     4 662
Other assets                                                      14 189      14 730         (4)    11 960
Current tax assets                                                   304         288           6       196
Non-current assets held for sale                          1        4 052          35        >100         -
Loans and advances to customers                       2,3,4      528 191     504 925           5   509 598
Reinsurance assets                                                 1 003       1 009         (1)       860
Investment securities                                             20 555      21 182         (3)    24 446
Investments in associates and joint ventures                         569         420          35       416
Investment properties                                              1 220       2 839        (57)     2 523
Property and equipment                                             8 397       7 996           5     7 493
Goodwill and intangible assets                                     2 561       2 135          20     1 794
Deferred tax assets                                                  366         269          36       434
Total assets                                                     807 939     786 719           3   725 957

Liabilities
Deposits from banks                                               36 035      38 339         (6)    15 406
Trading portfolio liabilities                                     51 684      55 960         (8)    47 454
Hedging portfolio liabilities                                      3 855       2 456          57     1 881
Other liabilities                                                 18 215      14 695          24    11 239
Provisions                                                         1 681       1 710         (2)     1 808
Current tax liabilities                                               59         267        (78)       965
Non-current liabilities held for sale                     1        1 480          -          100        -
Deposits due to customers                                 5      477 427     440 960           8   387 598
Debt securities in issue                                  6      108 044     130 262        (17)   164 545
Liabilities under investment contracts                            13 609      15 233        (11)    13 964
Policyholder liabilities under insurance contracts                 3 550       3 183          12     3 001
Borrowed funds                                            7       17 907      14 051          27    13 649
Deferred tax liabilities                                           1 599       1 198          33     2 298
Total liabilities                                                735 145     718 314           2   663 808

Equity
Capital and reserves
Attributable to ordinary equity holders:
 Share capital                                                     1 435       1 434           0     1 433
 Share premium                                                     4 604       4 676         (2)     4 590
 Retained earnings                                                56 903      53 813           6    47 958
 Other reserves                                                    3 941       2 385          65     2 309
                                                                  66 883      62 308           7    56 290
Non-controlling interest - ordinary shares                         1 267       1 453        (13)     1 215
Non-controlling interest - preference shares                       4 644       4 644          -      4 644
Total equity                                                      72 794      68 405           6    62 149
Total liabilities and equity                                     807 939     786 719           3   725 957

Note
(1) Comparatives have been reclassified. Refer to note 21.



CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
for the reporting period ended 31 December
                                                                      2012    2011 (1)
                                                                 (Audited)   (Audited)      Change
                                                         Note           Rm          Rm           %
Net interest income                                                 24 111      24 429         (1)
   Interest and similar income                            8.1       50 766      51 191         (1)
   Interest expense and similar charges                   8.2     (26 655)    (26 762)           0
Impairment losses on loans and advances                     3      (8 290)     (5 081)        (63)
Net interest income after impairment losses on 
loans and advances					            15 821      19 348        (18)
Non-interest income                                                 22 741      21 403           6
Net fee and commission income                                       15 435      15 293           1
    Fee and commission income                             9.1       17 936      17 422           3
    Fee and commission expense                            9.2      (2 501)     (2 129)        (17)
  Net insurance premium income                                       5 618       5 209           8
  Net insurance claims and benefits paid                           (2 719)     (2 517)         (8)
  Changes in investment and insurance contract liabilities           (980)       (914)         (7)
  Gains and losses from banking and trading activities    9.3        3 670       2 594          41
  Gains and losses from investment activities             9.4          963         966         (0)
  Other operating income                                               754         772         (2)
Operating income before operating expenditure                       38 562      40 751         (5)
Operating expenditure                                             (26 693)    (26 581)         (0)
   Operating expenses                                    10.1     (25 874)    (25 458)         (2)
   Other impairments                                     10.2        (113)        (52)      >(100)
   Indirect taxation                                                 (706)     (1 071)          34
Share of post-tax results of associates and joint ventures             249          40        >100
Operating profit before income tax                                  12 118      14 210        (15)
Taxation expense                                                   (3 377)     (4 026)          16
Profit for the reporting period                                      8 741      10 184        (14)


Other comprehensive income
Foreign exchange differences on translation of foreign 
operations						               140         522        (73)
Movement in cash flow hedging reserve                                  405       (237)        >100
  Fair value gains arising during the reporting period               2 650       1 972          34
  Amount removed from other comprehensive income and recognised
  in the profit and loss component of the statement of 
  comprehensive income				                   (2 088)     (2 300)           9
  Deferred tax                                                       (157)          91      >(100)
Movement in available-for-sale reserve                               1 109        (17)        >100
  Fair value gains/(losses) arising during the reporting period      1 532        (58)        >100
  Amortisation of government bonds - release to the profit and  
  and loss component of the statement of comprehensive income           10          20        (50)
  Deferred tax                                                       (433)          21      >(100)
Movement in retirement benefit fund asset and liabilities            (242)        (51)      >(100)
  Decrease in retirement benefit surplus                             (279)        (66)      >(100)
  Increase in retirement benefit deficit                              (59)         (5)      >(100)
  Deferred tax                                                          96          20        >100
Total comprehensive income for the reporting period                 10 153      10 401         (2)

Profit attributable to:
Ordinary equity holders                                              8 393       9 674        (13)
Non-controlling interest - ordinary shares                              53         226        (77)
Non-controlling interest - preference shares                           295         284           4
                                                                     8 741      10 184        (14)
Total comprehensive income attributable to:
Ordinary equity holders                                              9 812       9 791           0
Non-controlling interest - ordinary shares                              46         326        (86)
Non-controlling interest - preference shares                           295         284           4
                                                                    10 153      10 401         (2)
Earnings per share:
Basic earnings per share (cents)                                   1 169,6     1 349,6        (13)
Diluted earnings per share (cents)                                 1 167,0     1 343,8        (13)

Note
(1) Comparatives have been reclassified. Refer to note 21.


CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the reporting period ended 31 December
                                                                    	       2012
                                                                             (Audited)
							     Capital and
							        reserves         Non-          Non-
							    attributable  controlling   controlling
							     to ordinary    interest-     interest-
							          equity     ordinary    preference     Total
							         holders       shares        shares    equity
                                                                      Rm           Rm            Rm        Rm
Balance at the beginning of the reporting period                  62 308        1 453         4 644    68 405
Total comprehensive income for the reporting period                9 812           46           295    10 153
 Profit for the reporting period                                   8 393           53           295     8 741
 Other comprehensive income                                        1 419          (7)             -     1 412
Dividends paid during the reporting period                       (5 069)        (138)         (295)   (5 502)
Purchase of Group shares in respect of equity-settled 
share-based payment schemes                                        (211)           -              -     (211)
Elimination of the movement in treasury shares held by Group
entities                                                              30           -              -        30
Movement in share-based payment reserve                               13           -              -        13
 Transfer from share-based                                         (110)           -              -     (110)
 payment reserve 
 Transfer to share capital and                                       110           -              -       110
 share premium
 Value of employee services                                           13           -              -        13
Movement in foreign insurance subsidiary regulatory reserve (1)        -           -               -        -
 Transfer to foreign insurance subsidiary regulatory reserve          13           -               -       13
 Transfer from retained earnings                                    (13)           -               -     (13)
Movement in general credit risk reserve                                -           -               -        -
 Transfer to general credit risk                                      54           -               -       54
 Reserve
 Transfer from retained earnings                                    (54)           -               -     (54)
Movement in insurance contingency reserve (2)                          -           -               -       -
 Transfer from insurance                                           (324)           -               -    (324)
 contingency reserve
 Transfer to retained earnings                                       324           -               -      324
Share of post-tax results of associates and joint ventures'            -           -               -        -
 Transfer to associates and joint                                  
 ventures reserve                                                    249           -               -      249
 Transfer from retained earnings                                   (249)           -               -    (249)
Increase in the interest of non-controlling equity holders             -           35              -       35
Disposal of interest in subsidiary without loss of control             -        (129)              -    (129)
Balance at the end of the reporting period                        66 883        1 267          4 644   72 794


Notes
(1) The foreign insurance subsidiary regulatory reserve is calculated on the basis of
    the following minimum percentages of profits recorded in each reporting period for
    that subsidiary:
 - 20% until the value of reserves represents half of the minimum capital required
   under the foreign insurance subsidiary's legislation.
 - 10% from the time the amount specified in the preceding paragraph, has been
   attained.
(2) This reserve is no longer required due to a change in the Financial Services Board
    (FSB) regulations.
                                                                    		  2011
                                                                               (Audited)
							     Capital and
							        reserves         Non-          Non-
							    attributable  controlling   controlling
							     to ordinary    interest-     interest-
							          equity     ordinary    preference     Total
							         holders       shares        shares    equity
                                                                      Rm           Rm            Rm        Rm
Balance at the beginning of the reporting period                  56 290        1 215         4 644    62 149
Total comprehensive income for the reporting period                9 791          326           284    10 401
Profit for the reporting period                                    9 674          226           284    10 184
Other comprehensive income                                           117          100             -       217
Dividends paid during the reporting period                       (3 744)        (173)         (284)   (4 201)
Purchase of Group shares in respect of equity-settled 
share-based payment schemes                                        (281)            -            -      (281)
Elimination of the movement in treasury shares held by Group
entities                                                             194            -            -        194
Movement in share-based payment reserve                               58            -            -         58
 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 risk                                  (48)            -            -       (48)
 Reserve
 Transfer to retained earnings                                        48            -            -         48
Movement in insurance contingency reserve                              -            -            -          -
 Transfer to insurance contingency                                    19            -            -         19
 Reserve
 Transfer from retained earnings                                    (19)            -            -       (19)
Share of post-tax results of associates and joint ventures             -            -            -          -
 Transfer to associates and joint                                    40            -            -         40
 ventures reserve
 Transfer from retained earnings                                    (40)            -            -       (40)
Disposal of associates and joint ventures - release of reserves        -            -            -          -
 Transfer to associates' and joint                                    13            -            -         13
 ventures' reserve
 Transfer from retained earnings                                    (13)            -            -       (13)
Increase in the interest of non-controlling equity holders             -           21            -         21
Non-controlling interest arising from business combinations            -           64            -         64
Balance at the end of the reporting period                        62 308        1 453        4 644     68 405



CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
for the reporting period ended 31 December
                                                                    2012         2011
                                                               (Audited)    (Audited)      Change
                                                       Note           Rm           Rm          %
Net cash generated from operating activities                       5 577        8 305        (33)
Net cash utilised in investing activities                        (1 882)        (511)      >(100)
Net cash utilised in financing activities                        (2 045)      (4 143)          51
Net increase in cash and cash equivalents                          1 650        3 651        (55)
Cash and cash equivalents at the beginning of the 
reporting period					  1       10 068        6 417          57
Effect of exchange rate movements on cash and
cash equivalents					             (2)            0      >(100)
Cash and cash equivalents at the end of the 
reporting period					  2       11 716       10 068          16

NOTES
1. Cash and cash equivalents at the beginning of the
   reporting period
   Cash, cash balances and balances with central                   7 893        4 939          60
   Banks
   Loans and advances to banks                                     2 175        1 478          47
                                                                  10 068        6 417          57
2. Cash and cash equivalents at the end of the
   reporting period
   Cash, cash balances and balances with central                   8 816        7 893          12
   Banks
   Loans and advances to banks                                     2 900        2 175          33
                                                                  11 716       10 068          16
																  

CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL RESULTS
as at 31 December
1. NON-CURRENT ASSETS HELD FOR SALE
During the reporting period, the Group effected the following transfers to non-current
assets and non-current liabilities held for sale:

Through the RBB segment:
- the investment in Sekunjalo Investments Limited, with a carrying value of R20
  million. This investment was subsequently sold in January 2013;
- in the Commercial Property Finance Equity (CPF Equity) division, net assets in
  one of its subsidiaries, totalling R1 209 million, and one of its property
  equity investments with a carrying value of R10 million;

- in the CPF Equity division, investments in  Kilkishen Investments Proprietary 
  Limited and Stand 1135 Houghton Proprietary Limited with a carrying value of 
  R36 million from investments in associates and joint ventures; and
- in the CPF Equity division, property and equipment with a carrying value of R22
  million, and concluded a contract for the sale of The Pivot Office Park, with a
  carrying value of R66 million, previously classified as investment property.

Through the Financial Services segment:
- transferred investment in One Commercial Investment Holdings Cell Captive with a 
  carrying value of R10 million from investments in associates and joint ventures;
- net assets totalling R44 million in Absa Insurance Risk Management
  Services Limited, a subsidiary of Absa Insurance Company Limited (AIC). The
  disposal of the subsidiary is due to take place during 2013;
- transferred net assets totalling R245 million in the APEF. Management's intention
  is to dispose of further units in the APEF such that the Group no longer has
  control over the APEF; and
- transferred gross assets and liabilities totalling R1,7 billion and R700 million
  respectively in the General Fund. This transfer is as a result of the amalgamation
  of the General Fund with the Absa Select Equity Fund due to take place during 2013.

Through the Corporate Real Estate business segment:
- transferred several properties during the reporting period whose contracts for
  sale concluded in the previous reporting period.

2. LOANS AND ADVANCES TO CUSTOMERS
                                                 2012     2011 (1)                   2010 (1)
                                            (Audited)   (Audited)      Change       (Audited)
                                                   Rm          Rm           %              Rm
Cheque accounts                                33 809      33 398           1          32 005
Corporate overdrafts and specialised
finance loans                                   5 121      10 681        (52)           9 612
Credit cards (2)                               33 034      21 579          53          20 663
Foreign currency loans                         13 143       9 628          37           6 609
Instalment credit agreements                   60 489      57 385           5          56 967
Gross advances                                 73 124      68 540           7          67 517
Unearned finance charges                     (12 635)    (11 155)        (13)        (10 550)
Reverse repurchase agreements                   4 698       1 613        >100           3 063
Loans to associates and joint ventures         10 094       7 909          28           8 025
Microloans                                      2 002       1 922           4           2 069
Mortgages                                     282 778     292 463         (3)         307 054
Other loans and advances(3)                     3 226       4 619        (30)           3 766
Overnight finance                              18 862      12 320          53           7 647
Personal and term loans                        33 654      29 925          12          28 283
Preference shares                               6 342       6 958         (9)           6 622
Wholesale overdrafts                           34 951      26 656          31          31 115
Gross loans and advances to customers         542 203     517 056           5         523 500
Impairment losses on loans and advances 
(refer to note 3)                            (14 012)    (12 131)        (16)        (13 902)
                                              528 191     504 925           5         509 598

Notes
(1) Comparatives have been reclassified. Refer to note 21.
(2) Include the acquisition of the Edcon store card loan portfolio.
(3) Include customer liabilities under acceptances, working capital solutions and collateralised loans.


3. IMPAIRMENT LOSSES ON LOANS AND ADVANCES
                                                                  2012         2011
                                                             (Audited)    (Audited)      Change
                                                                    Rm           Rm           %
Balance at the beginning of the reporting period                12 131       13 902        (13)
Amounts written off during the reporting period                (6 355)      (6 493)           2
Foreign exchange differences                                       (4)            1      >(100)
Interest on impaired assets (refer to note 8.1)                (1 018)      (1 173)          13
                                                                 4 754        6 237        (24)
Impairments raised during the reporting period                   9 258        5 894          57
Balance at the end of the reporting period                      14 012       12 131          16

Comprising:
Identified impairments                                          13 040       11 306          15
  Performing loans (1)                                           1 386        1 429         (3)
  Non-performing loans (1)                                      11 654        9 877          18
Unidentified impairments                                           972          825          18
                                                                14 012       12 131          16

3.1 Statement of comprehensive income charge for
the reporting period ended 31 December
Impairments raised during the reporting period                   9 258        5 894          57
  Identified impairments                                         9 100        6 015          51
  Unidentified impairments                                         158        (121)        >100
Recoveries of loans and advances previously
written off                                                      (968)        (813)        (19)
                                                                 8 290        5 081          63

Note
(1) The breakdown of identified impairments between performing and non-performing loans is unaudited.



4. NON-PERFORMING LOANS
                                                               	    2012
                                                            	(Unaudited)
						       Expected
						     recoveries
				                       and fair 	           Total
					Outstanding    value of 	Net   identified    Coverage
					    balance  collateral    exposure   impairment       ratio
                                                 Rm          Rm          Rm           Rm           %
RBB                                          30 583      19 445      11 138       11 138        36,4
 Retail Markets                              24 040      15 498       8 541        8 541        35,5
  Cheque accounts                               166          61         105          105        63,3
  Credit cards                                1 842         608       1 234        1 234        67,0
  Instalment credit agreements                1 563         798         764          764        48,9
  Microloans                                    410         148         262          262        63,9
  Mortgages                                  18 798      13 445       5 353        5 353        28,5
  Personal loans                              1 261         438         823          823        65,3
 Business Markets                             6 543       3 947       2 597        2 597        39,7
  Cheque accounts                             1 120         716         404          404        36,1
  Commercial asset finance                      670         242         428          428        63,9
  Commercial property finance                 3 222       1 883       1 340        1 340        41,6
  Term loans                                  1 531       1 106         425          425        27,8
CIBW                                            880         384         496          496        56,4
Financial Services                               20          -           20           20       100,0
Non-performing loans                         31 483      19 829      11 654       11 654        37,0

Non-performing loans ratio (%)                  5,8




                                                               	      2011
                                                           	  (Unaudited)
						       Expected
						     recoveries
						       and fair 	   	           Total
					Outstanding    value of 	 Net   identified    Coverage
					    balance  collateral     exposure   impairment       ratio
                                                 Rm          Rm           Rm           Rm           %
RBB                                          34 692      25 254        9 438        9 438        27,2
 Retail Markets                              30 142      22 307        7 835        7 835        26,0
  Cheque accounts                               184          52          132          132        71,7
  Credit cards                                2 013         713        1 300        1 300        64,6
  Instalment credit agreements                2 645       1 370        1 275        1 275        48,2
  Microloans                                    348          76          272          272        78,2
  Mortgages                                  23 590      19 558        4 032        4 032        17,1
  Personal loans                              1 362         538          824          824        60,5
 Business Markets                             4 550       2 947        1 603        1 603        35,2
  Cheque accounts                               749         432          317          317        42,3
  Commercial asset finance                      932         395          537          537        57,6
  Commercial property finance                 1 894       1 354          540          540        28,5
  Term loans                                    975         766          209          209        21,4
CIBW                                            844         405          439          439        52,0
Non-performing loans                         35 536      25 659        9 877        9 877        27,8

Non-performing loans ratio (%)                  6,9


5. DEPOSITS DUE TO CUSTOMERS
                                                                    2012        2011
                                                               (Audited)   (Audited)      Change
                                                                      Rm          Rm           %
Call deposits                                                     56 667      55 783           2
Cheque account deposits                                          143 861     134 505           7
Credit card deposits                                               1 938       1 884           3
Fixed deposits                                                   125 800     125 273           0
Foreign currency deposits                                         12 253       8 947          37
Notice deposits                                                   55 728      28 500          96
Other deposits (1)                                                  1 707       2 771        (38)
Repurchase agreements with non-banks                               1 503       8 734        (83)
Savings and transmission deposits                                 77 970      74 563           5
                                                                 477 427     440 960           8

Note
(1) Include partnership contributions received, deposits due on structured deals, preference
    investments on behalf of customers and unclaimed deposits.


6. DEBT SECURITIES IN ISSUE
                                                                    2012        2011
                                                               (Audited)   (Audited)      Change
                                                                      Rm          Rm           %
Credit linked notes                                                9 800       8 976           9
Floating rate notes                                               53 903      69 553        (23)
Liabilities arising from securitised special purpose 
entities (SPEs)							   2 391       4 218        (43)
Negotiable certificates of deposit                                17 575      30 214        (42)
Other debt securities                                                  7          -          100
Promissory notes                                                   1 378       1 550        (11)
Structured notes and bonds                                         1 098       1 451        (24)
Senior notes                                                      21 892      14 300          53
                                                                 108 044     130 262        (17)


7. BORROWED FUNDS
Subordinated callable notes
The subordinated debt instruments listed below qualify as secondary capital in terms of the Banks Act.
Interest rate             Final maturity date
 8,75%                       1 September 2017                          -       1 500       (100)
 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           -
8,295%                       21 November 2023                      1 188           -         100
Three-month JIBAR + 2,10%          3 May 2022                                    400         400           -
Three-month JIBAR + 1,95%    21 November 2022                      1 805           -         100
Three-month JIBAR + 2,05%    21 November 2023                      2 007           -         100
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                                                   1 462       1 157          26
Fair value adjustment                                                334         283          18
                                                                  17 907      14 051          27


CONDENSED NOTES TO THE CONSOLIDATED FINANCIAL RESULTS
for the reporting period ended 31 December
8. NET INTEREST INCOME
8.1 Interest and similar income
                                                                    2012     2011(1)
                                                               (Audited)   (Audited)      Change
                                                                      Rm          Rm           %
Interest and similar income is earned from:
Cash, cash balances and balances with central banks                  166         159           4
Fair value adjustments on hedging instruments                      (185)       1 063      >(100)
Investment securities                                                202         390        (48)
Loans and advances to banks                                          865         989        (13)
 Other                                                               771         834         (8)
 Reverse repurchase agreements                                        94         155        (39)
Loans and advances to customers                                   43 589      43 818         (1)
 Cheque accounts                                                   3 034       2 947           3
 Corporate overdrafts and specialised finance loans                  484         664        (27)
 Credit cards                                                      3 593       2 991          20
 Foreign currency loans                                              288         177          63
 Instalment credit agreements                                      5 550       5 577         (0)
 Interest on impaired financial assets (refer to note 3)           1 018       1 173        (13)
 Loans to associates and joint ventures                              494         417          18
 Microloans                                                          505         544         (7)
 Mortgages                                                        20 986      22 062         (5)
 Other loans and advances(2)                                         299         378        (21)
 Overnight finance                                                   814         584          39
 Personal and term loans                                           3 661       3 649           0
 Preference shares                                                   485         619        (22)
 Wholesale overdrafts                                              2 378       2 036          17
Other interest income(3)                                             545         486          12
Statutory liquid asset portfolio                                   5 584       4 286          30
                                                                  50 766      51 191         (1)

Notes
(1) Comparatives have been reclassified. Refer to note 21.
(2) Include items such as interest on factored debtors' books.
(3) Includes items such as overnight interest on contracts for differences as well as inter-segment
    eliminations between 'Interest and similar income', 'Interest expense and similar charges', 
    'Gains and losses from banking and trading activities and 'Gains and losses from investment activities'.




8.2 Interest expense and similar charges
                                                                    2012                2011 (1)
                                                               (Audited)               (Audited)          Change
                                                                      Rm                      Rm               %
Interest expense and similar charges are paid on:
Borrowed funds                                                     1 352                   1 350               0
Debt securities in issue                                           8 485                   9 596            (12)
Deposits due to customers                                         17 999                  16 467               9
  Call deposits                                                    2 881                   3 082             (7)
  Cheque account deposits                                          3 130                   2 761              13
  Credit card deposits                                                 9                      10            (10)
  Fixed deposits                                                   6 992                   7 153             (2)
  Foreign currency deposits                                          114                     100              14
  Notice deposits                                                  2 471                     777            >100
  Other deposits                                                     228                     489            (53)
  Savings and transmission deposits                                2 174                   2 095               4
Deposits from banks                                                  577                     581             (1)
  Call deposits                                                      450                     480             (6)
  Fixed deposits                                                     103                      98               5
  Other deposits                                                      24                       3            >100
Fair value adjustments on hedging instruments                      (998)                   (472)          >(100)
Interest incurred on finance leases                                   51                      85            (40)
Other interest expense(2)                                          (811)                   (845)               4
                                                                  26 655                  26 762             (0)

Notes
(1) Comparatives have been reclassified. Refer to note 21.
(2) Includes items such as inter-segment eliminations between 'Interest and similar income', 'Interest expense 
    and similar charges', 'Gains and losses from banking and trading activities and 'Gains and losses from investment 
    activities'.



9. NON-INTEREST INCOME
9.1 Fee and commission income
                                                                    2012                2011 (1)
                                                               (Audited)               (Audited)          Change
                                                                      Rm                      Rm               %
Asset management and other related fees                              158                     129              22
Consulting and administration fees                                   566                     520               9
Credit-related fees and commissions                               12 404                  12 051               3
   Cheque accounts                                                 3 589                   3 334               8
   Credit cards (1) (2)                                              617                     473              30
   Electronic banking                                              4 068                   4 095             (1)
   Other credit-related fees and commissions (3)                   1 642                   1 762             (7)
   Savings accounts                                                2 488                   2 387               4
Insurance commission received                                      1 077                     901              20
Investment banking fees                                              252                     222              14
Merchant income (2)                                                2 013                   1 806              11
Other fee and commission income                                      224                     256            (13)
Pension fund payment services (4)                                    122                     484            (75)
Trust and other fiduciary services                                 1 120                   1 053               6
 Portfolio and other management fees                                 870                     801               9
 Trust and estate income                                             250                     252             (1)
                                                                  17 936                  17 422               3

9.2. Fee and commission expense
Cheque processing fees                                             (161)                   (171)               6
Insurance commission paid                                          (943)                   (877)             (8)
Other fee and commission expense                                   (913)                   (659)            (39)
Transaction-based legal fees                                       (313)                   (229)            (37)
Trust and other fiduciary service fees                             (44)                     (51)              14
Valuation fees                                                     (127)                   (142)              11
                                                                 (2 501)                 (2 129)            (17)

Net fee and commission income                                     15 435                  15 293               1

Notes
(1) Include acquiring and issuing fees.
(2) During the current reporting period, certain clearing fees were reclassified from 'Credit cards' to
    'Merchant income' to more accurately present Card non-interest income. This resulted in a
    reclassification of comparative information.
(3) Include service, credit-related fees and commissions on mortgage loans and foreign exchange transactions.
(4) During the current reporting period, net fee and commission income in AllPay
    reduced significantly due to the termination of the South African Social Security Agency contract.



9.3 Gains and losses from banking and trading activities
                                                                    2012            2011 (1)
                                                               (Audited)           (Audited)        Change
                                                                      Rm                  Rm             %
Net gains on investments (1) (2)                                      93                 437          (79)
   Debt instruments designated at fair value through                 179                 215          (17)
   profit or loss
   Equity instruments designated at fair value                      (76)                 242        >(100)
   through profit or loss
   Available-for-sale unwind from reserves                          (10)                (20)            50
Net trading result (2)                                             3 566               2 271            57
 Net trading income excluding the impact of hedge accounting       3 544               2 245            58
   Ineffective portion of hedges                                      22                  26          (15)
      Cash flow hedges                                                45                  33            36
      Fair value hedges                                             (23)                 (7)        >(100)
Other gains/(losses)                                                  11               (114)          >100
                                                                   3 670               2 594            41
Net trading income excluding the impact of hedge accounting        3 544               2 245            58
 Losses on financial instruments designated at                     (857)               (836)           (3)
 fair value through profit or loss
 Net gains on financial assets designated at fair                  1 129                 495          >100
 value through profit or loss
  Net losses on financial 
 liabilities designated                
  at fair value through profit or loss                           (1 986)             (1 331)          (49)
Gains on financial instruments held for trading                    4 401               3 081            43
Other gains/(losses)                                                  11               (114)          >100
 Losses on financial instruments designated at                      (52)                (78)            33
 fair value through profit or loss
 Gains/(losses) on financial instruments held for                     63                (36)          >100
 trading

Notes
(1) In order to provide improved disclosure, revaluations between debt and equity
    instruments have been reclassified.
(2) Due to structure changes, certain revenue
    streams have been reclassified from 'Markets' to 'Corporate'. This also
    resulted in a reclassification from 'Net trading result' to 'Net gains on
    investments'.



9.4 Gains and losses from investment activities
                                                                    2012        2011
                                                               (Audited)   (Audited)      Change
                                                                      Rm          Rm           %
Available-for-sale unwind from reserves                                2           1         100
Net gains on investments from insurance                              913         886           3
activities (1)
   Policyholder - insurance contracts                                329         173          90
   Policyholder - investment contracts                               313         511        (39)
   Shareholder funds                                                 271         202          34
Other gains (2)                                                       48          79        (39)
                                                                     963         966         (0)
Net gains on investments from insurance activities                   913         886           3
 Gains on financial instruments designated at fair                   913         880           4
 value through profit or loss
 Gains on financial instruments held for trading                       -           6       (100)

Notes
(1) Include treasury shares held by Group entities, which are eliminated on
    consolidation.
(2) Include gains and losses from instruments designated at fair value through
    profit and loss.



10. OPERATING EXPENDITURE
10.1 Operating expenses
                                                                    2012        2011
                                                               (Audited)   (Audited)      Change
                                                                      Rm          Rm           %
Amortisation of intangible assets                                    255         289        (12)
Auditors' remuneration                                               176         166           6
Cash transportation                                                  646         726        (11)
Depreciation                                                       1 303       1 261           3
Equipment costs                                                      287         224          28
Information technology (IT) (1)                                    2 134       2 241         (5)
Investment property charges - change in fair value                   408          41       >100
Marketing costs                                                    1 024       1 036         (1)
Operating lease expenses on properties                             1 058       1 018           4
Other property costs                                                 399         286          40
Printing and stationery                                              220         253        (13)
Professional fees (1)                                                862       1 076        (20)
Property costs                                                     1 270       1 120          13
Staff costs                                                       13 078      13 642         (4)
  Bonuses                                                            985       1 285        (23)
  Current service costs on post-retirement benefits                  640         772        (17)
  Other staff costs (2)                                              470         487         (3)
  Salaries                                                        10 308      10 379         (1)
  Share-based payments                                               463         467         (1)
  Training costs                                                     212         252        (16)
Telephone and postage                                                794         803         (1)
Other operating expenses (3)                                       1 960       1 276          54
                                                                  25 874      25 458           2
Notes
(1) 'Information technology expenses' and 'Professional fees' include research and development
     costs totalling R113 million (2011: R101 million).
(2) Include recruitment costs, membership fees to professional bodies, staff parking,
    redundancy fees, study assistance, staff relocation and refreshment costs.
(3) Include fraud losses, travel and entertainment costs and collection costs.


10.2 Other impairments
                                                                    2012     2011 (1)
                                                               (Audited)    (Audited)     Change
                                                                      Rm           Rm          %
Financial instruments                                                  6            5         20
  Amortised cost                                                       6            5         20
Other                                                                107           47       >100
  Computer software development costs                                 89            -        100
  Goodwill                                                            18           28       (36)
  Investments in associates and joint ventures                         -          (2)        100
  Repossessed properties                                               0           21     >(100)
                                                                     113           52       >100


11. HEADLINE EARNINGS
                                                                    2012                    2011
                                                               (Audited)               (Audited)               Net
                                                                   Gross         Net       Gross      Net   change
                                                                      Rm          Rm          Rm       Rm       %
Headline earnings (1) is determined as follows:
Profit attributable to ordinary equity  holders                               8 393                 9 674     (13)
Total headline earnings adjustment:                                             414                    45     >100
 IAS 36 - Goodwill impairment                                         18         18          28        28     (36)
 IAS 16 - Profit on disposal of property and equipment              (81)       (63)        (33)      (30)   >(100)
 IAS 28 and 31 - Headline earnings component of share of post-tax
 results of associates and joint ventures          	             (1)        (1)         (0)       (0)   >(100)
 IAS 28 and 31 - Impairment reversal of investments in 
 associates and joint ventures          			       -          -         (2)       (1)      100
 IAS 38 and 36 - Loss on disposal and impairment of 
 intangible assets				                      92         65           2         1     >100
 IAS 39 - Release of available-for-sale reserves                      10          7          20        14     (50)
 IAS 40 - Change in fair value of investment properties              408        388          39        33     >100
Headline earnings / diluted headline earnings                                 8 807                 9 719      (9)
Headline earnings per share (cents)                                         1 227,3               1 355,9      (9)
Diluted headline earnings per share (cents)                                 1 224,6               1 350,0      (9)

Note
(1) The net amount is reflected after taxation and non-controlling interest.



12. DIVIDENDS PER SHARE 
                                                                          2012          2011
                                                              	      (Audited)     (Audited)     Change
                                                                            Rm            Rm           %
Dividend paid to ordinary shareholders of Absa Group Limited (1)
Interim  dividend (27 July 2012: 315 cents)
(2 August 2011: 292 cents)				                 2 262         2 098           8
Dividends paid on treasury shares - interim dividend (2)                   (3)           (3)         (0)
Final dividend (12 February 2013: 369 cents)
(10 February 2012: 392 cents)    				         2 650         2 815         (6)
Dividends paid on treasury shares - final dividend (2)                       -           (5)         100
                                                                         4 909         4 905         (0)

Dividends paid to non-controlling preference shareholders
of Absa Bank Limited
Interim dividend (27 July 2012: 3 134,6575 cents)
(2 August 2011: 2 858,3014 cents)				           155           141          10
Final dividend (12 February 2013: 2 950,5479 cents)
(10 February 2012: 2 827,2329 cents)				           146           140           4
                                                                	   301           281           7

In 2007, the Minister of Finance announced a two-phased approach to Secondary Tax on Companies
(STC) reform, which included the reduction of the STC tax rate to 10% and the replacement of
STC with a new dividend withholding tax on shareholders (DWT). On 1 April 2012 dividend 
tax came into 
effect and ceased to be levied at a company level, and is now levied on the shareholders
who receive 
the dividends.

Unutilised STC credits at the end of December 2011 were utilised against the STC payable on
the final dividend declared in February 2012. Deferred tax assets relating to unutilised STC
credits up to 31 March 2012 have been utilised.

Notes
(1) Included in the statement of changes in equity is the interim dividend paid
    during the current reporting period of R2 259 million (2011: R2 095 million) and
    the final dividend paid during the previous reporting period of R2 810
    million (2010: R1 649 million). These amounts are net of the dividend paid on
    treasury shares.
(2) Dividends paid on treasury shares are calculated at the date of payment.


13. ACQUISITIONS AND DISPOSALS
The following interests were acquired/disposed of during the reporting period:
Acquisitions
Subsidiaries and business combinations
The following interests were acquired/disposed of during the current reporting period:
Absa Financial Services (AFS) obtained regulatory approval to start a new life insurance
business in Zambia through its subsidiary Absa Financial
Services Africa Holdings Proprietary Limited (AFSAH). AFSAH injected R15 million by
subscribing in the ordinary share capital during the reporting
period for the subsidiary, Barclays Life Zambia (Pty) Limited.
During the reporting period, the Group, through its wholly-owned subsidiary Absa Bank Limited,
(the Bank) acquired the remaining 50% shareholding in NewFunds Proprietary Limited (NewFunds) 
from Vunani Capital Proprietary Limited.
Following the acquisition, the Group owns
100% of the shares in NewFunds. At the acquisition date, the investment was recognised at
R2 million. No gain/(loss) was recognised in the
statement of comprehensive income. NewFunds is a collective investment scheme manager that
provides various management services to collective
investment schemes.
The following interests were acquired during the previous reporting period:
On 1 September 2011, AFSAH acquired 100% of the share capital of Global Alliance Seguros S.A. (GA)
for an initial purchase price of R156 million.
The purchase price was subject to a guaranteed net asset value (NAV) of R77 million and the
outcome of a due diligence investigation at the acquisition date which is customary for a transaction 
of this nature. The due diligence highlighted a shortfall in the actual NAV, which resulted in
AFSAH and the seller entering into negotiations to resolve the differences. The seller accepted the
outcome of the due diligence and the final
purchase price was settled at R129 million. The difference between the initial purchase price paid
of R156 million and the final purchase price of R129 million was kept in an escrow account and refunded 
to the Group at the end of May 2012.
The acquisition price of R129 million is represented by net assets of R54 million, goodwill of R24 million 
and other intangible assets, net of deferred tax of R51 million.

Other significant assets
The Group, through the Bank, acquired the store card portfolio of Edcon Proprietary Limited (Edcon).
This portfolio consists of approximately four million active store cards. A cash consideration equal to 
the net book value was paid on the acquisition date as at 1 November 2012. The Group is
responsible for credit management, fraud, risk, finance, legal, compliance and key back office operations, 
while Edcon manages the front office operations and primary customer interaction.
The net book value of the Edcon store card portfolio (Edcon portfolio), as at 1 November 2012, amounted to
approximately R8,7 billion. The Edcon portfolio is not considered to be a business combination in terms of IFRS 3, 
Business Combinations. As such, the acquisition was accounted for as an acquisition of a financial asset and 
therefore recorded in the credit cards disclosure line in the loans and advances to customers account.
The acquisition will result in an increase of R8 279 million in net loans and advances and R388 million
in intangible assets with no impact on the statement of comprehensive income at the acquisition date. This 
transaction relates to the acquisition of the South African Edcon portfolio. The transactions relating to the other 
jurisdictions are to be completed in 2013.
The significant ratios are impacted mainly by the increase in the Group's asset base as a result of increase in 
'Loans and advances to customers'. The statement of comprehensive income impact is R141 million in the current 
reporting period.

Associates and joint ventures
During the reporting period, the Group, through its Home Loans Division, entered into a joint venture
arrangement with other commercial banks in South Africa and created the Document Exchange Association (DEA), an unincorporated 
entity. The DEA's main purpose will be the facilitation and development of software to electronically exchange bank statements 
between local banks where these documents are used in the customer credit application process.

Disposals
Subsidiaries, business combinations and other
The Bank, through its Commercial Property Finance (CPF) division, sold all of its Class C units (effectively a holding of 64,08%) in 
the Absa Property Equity Fund (APEF) in the market on 28 June 2012. The transaction is a common control transaction since APEF and AFS 
are ultimately controlled by the same party both before and after the transaction. AFS acquired an equal amount of units in the
market on the same day to protect the APEF from market price volatility due to the large block of units sold by CPF. The Bank has 
recognised the disposal of APEF, while AFS has recognised the acquisition. There is no change in the accounting and presentation of 
the CPF division and no impact on the Group's reported profits. The transfer resulted in net assets of R340 million being transferred 
between Retail and Business Bank and Financial Services.
APEF operates as a special purpose entity (SPE) and was consolidated in terms of SIC-12, Consolidated - Special Purpose Entities, as 
the Group held the majority of the units in issue and was thereby exposed to the majority of the risks and rewards of the fund.
During July 2012, AFS disposed of some of the units it owned in the APEF to the extent that its effective holding decreased. Management's 
intention is to dispose of further units such that AFS will no longer have control over the APEF. As at the end of the reporting period, 
AFS remains committed to its sale plan involving loss of control. The investment in APEF has therefore been classified as a non-current 
asset held for sale.
No gain or loss was recognised on deconsolidation in the Group consolidated results due to the underlying assets being measured at fair 
value.

Associates and joint ventures
There were no entities disposed of during the current reporting period.


14. RELATED PARTIES
Barclays Bank PLC owns 55,5% (2011: 55,5%) of the ordinary shares in the Group. The remaining 44,5% (2011: 44,5%) of the shares are 
widely held on the Johannesburg Stock Exchange (JSE).
The following are defined as related parties of the Group:
- key management personnel (refer to note 14.1 and 14.2);
- the parent company (refer to note 14.3);
- fellow subsidiaries, associates and joint ventures of the parent company (refer to note 14.4);
- subsidiaries;
- associates, joint ventures and retirement benefit fund;
- 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.

14.1 Transactions with key management personnel
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 Executive Committee (Exco). Entities controlled by key management personnel are also considered to be related parties.
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 the end of the reporting period, and related expenses and income with related
parties for the reporting period are as follows:
                                                                   2012        2011
                                                              (Audited)   (Audited)      Change
                                                                     Rm          Rm           %
Balances
 Loans                                                              455         680        (33)
 Deposits                                                            15          34        (56)
 Guarantees issued by the Group                                     103          79          30
 Other investments                                                   40          81        (51)




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.
Loans to key management personnel of Rnil (2011: Rnil) were written off as irrecoverable. Loans to entities controlled by key management
personnel of R0 million (2011: Rnil) were written off as irrecoverable.

                                                                  2012        2011
                                                             (Audited)   (Audited)       Change
                                                                    Rm          Rm            %
Transactions
 Interest income                                                    45          56         (20)
 Interest expense                                                    1           1            0
 Insurance premiums paid                                          0,41        0,41            0
 Insurance claims received                                        0,08        0,17         (53)

14.2 Key management personnel compensation
Directors
 Post-employment benefit contributions                               1           1           0
 Salaries and other short-term benefits                             30          33         (9)
 Share-based payments                                               32          27          19
 Termination benefits                                               12           -         100
                                                                    75          61          23
Other key management personnel
 Post-employment benefit contributions                               2           2           0
 Salaries and other short-term benefits                             65          42          55
 Share-based payments                                               47          36          31
 Termination benefits                                                0           3       (100)
                                                                   114          83          37

14.3 Balances and transactions with the parent company (1)
Balances
 Loans and advances to banks                                    20 698      41 065        (50)
 Derivative assets                                              14 310      10 254          40
 Nominal value of derivative assets                          1 399 103     637 611        >100
 Other assets                                                      896         338        >100
 Investment securities                                             584         499          17
 Deposits from banks                                           (8 968)     (5 784)        (55)
 Derivative liabilities                                       (13 842)    (10 488)        (32)
 Nominal value of derivative liabilities                   (1 213 065)   (462 870)      >(100)
 Other liabilities                                                (59)     (1 167)        >100
Transactions
 Interest and similar income                                     (204)       (111)          84
 Interest and similar expense                                      106          67          58
 Net fee and commission income                                    (18)           -       (100)
 Gains and losses from banking and trading                       (158)       (136)        (16)
 activities
 Other operating income                                           (37)       (152)          76
 Operating expenditure/recovered expenses                         (12)       (115)      >(100)
 Dividends paid                                                  2 819       2 082          35

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 parent company. In exceptional cases,
it may be impractical or inefficient to settle balances monthly. In such cases, the unsettled balances 
must be explicitly agreed to on a monthly basis in writing and full settlement must be made at least 
quarterly.
There were no bad debt expenses and provisions for bad debts that related to balances and
transactions with the parent company.

Note
(1) Debit amounts are shown as positive, credit amounts are shown as negative.


14.4 Balances and transactions with fellow subsidiaries, associates and joint ventures of
the parent company (1) (2)

                                                                   2012        2011
                                                              (Audited)   (Audited)      Change
                                                                     Rm          Rm           %
Balances
 Loans and advances to banks                                        221         188          18
 Derivative assets                                                   37           0        >100
 Nominal value of a derivative assets                               947         608          56
 Other assets                                                        87           -         100
 Deposits from banks                                            (1 016)           -       (100)
 Derivative liabilities                                               5        (72)        >100
 Nominal value of derivative liabilities                          (521)     (1 441)        >100
 Other liabilities                                                 (61)        (52)          17
Transactions
 Interest and similar income                                         -          (2)         100
 Net fee and commission income                                      (7)        (12)          42
 Other operating income                                             (3)           -       (100)
 Operating expenditure/recovered expenses                           126         152      >(100)

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, associate or
joint venture 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 to on a monthly basis in writing, and full settlement must be made at least quarterly.
There were no bad debt expenses and provisions for bad debts that related to balances and
transactions with fellow subsidiaries, associates and joint ventures.

Notes
(1) Debit amounts are shown as positive, credit amounts are shown as negative.
(2) Fellow subsidiaries, associates and joint ventures are those entities of Barclays
    Bank PLC.


15. ASSETS UNDER MANAGEMENT AND ADMINISTRATION
as at 31 December
                                                                    2012        2011
                                                               (Audited)   (Audited)      Change
                                                                      Rm          Rm           %
Alternative asset management and exchange-traded funds            41 957      30 486          38
Deceased estates (1)                                               2 012       2 166         (7)
Other                                                             12 995      13 882         (6)
Participation bond schemes                                         2 184       2 544        (14)
Portfolio management                                              44 222      26 792          65
Private equity                                                       819         728          13
Trusts (1)                                                         3 783       3 343          13
Unit trusts                                                      138 978     133 245           4
                                                                 246 950     213 186          16

16. FINANCIAL GUARANTEE CONTRACTS
Financial guarantee contracts (2)                                    146         356        (59)

17. COMMITMENTS
Authorised capital expenditure
 Contracted but not provided for (3)                                 578         283        >100
Operating lease payments due (4)
 No later than one year                                              936       1 106        (15)
 Later than one year and no later than five years                  1 948       2 136         (9)
 Later than five years                                               365         585        (38)
                                                                   3 249       3 827        (15)
Sponsorship payments due (5)
No later than one year                                               289         209          38
Later than one year and no later than five years                     884         299        >100
                                                                   1 173         508        >100

18. CONTINGENCIES
Guarantees (6)                                                    16 217      13 226          23
Irrevocable debt facilities (7)                                   46 483      46 189           1
Irrevocable equity facilities (7)                                    543         494          10
Letters of credit                                                  6 670       5 190          29
Other                                                                  6          10        (40)
                                                                  69 919      65 109           7


Notes
(1) These balances are unaudited.
(2) Financial guarantee contracts represent contracts where the Group undertakes to make
    specified payments to a counterparty, should the counterparty suffer a loss as a result
    of a specified debtor failing to make payment when due in accordance with the terms of
    a debt instrument. This amount represents the maximum exposure, which is not necessarily 
    the measurement recognised in 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 property 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) The Group has sponsorship commitments in respect of sports, arts and culture. Certain sponsorship
    agreements expire in 2013 and are under review by management for renewal in the foreseeable future.
(6) Guarantees include performance and payment guarantee contracts.
(7) 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
for the reporting period ended 31 December
19.1 Condensed consolidated profit contribution by segment
                                                                   2012    2011 (1)
                                                              (Audited)   (Audited)      Change
                                                                     Rm          Rm           %
Banking operations
RBB                                                               4 346       6 106        (29)
Retail Markets                                                    3 436       4 243        (19)
  Home Loans                                                      (992)         516      >(100)
  Vehicle and Asset Finance                                         791         403          96
  Card (including Edcon)                                          2 088       1 757          19
  Personal Loans                                                    587         720        (18)
  Retail Bank                                                       947         647          46
  AllPay                                                             15         200        (93)
Business Markets                                                    910       1 863        (51)
CIBW                                                              2 810       2 230          26
Corporate Centre                                                    239        (37)        >100
Capital and funding centres                                         369         329          12
Non-controlling interest - preference shares (2)                  (295)       (284)         (4)
Total banking                                                     7 469       8 344        (10)
Financial Services                                                1 338       1 375         (3)
Headline earnings                                                 8 807       9 719         (9)

Notes
(1) Comparatives have been reclassified. Refer to note 21.
(2) Includes the elimination of non-controlling interest - preference shares.


19.2 Condensed consolidated total revenue (1) contribution by segment
                                                                   2012    2011 (2)
                                                              (Audited)   (Audited)      Change
                                                                     Rm          Rm           %
Banking operations
RBB                                                              33 853      33 514           1
Retail Markets                                                   24 855      24 334           2
  Home Loans                                                      4 202       4 129           2
  Vehicle and Asset Finance                                       2 236       2 171           3
  Card (including Edcon)                                          5 727       4 970          15
  Personal Loans                                                  1 971       2 108         (6)
  Retail Bank                                                    10 551      10 353           2
  AllPay                                                            168         603        (72)
Business Markets                                                  8 998       9 180         (2)
CIBW                                                              8 628       7 822          10
Corporate Centre                                                  (492)       (198)      >(100)
Capital and funding centres                                         847         679          25
Total banking                                                    42 836      41 817           2
Financial Services                                                4 016       4 015           0
Total revenue                                                    46 852      45 832           2

Notes
(1) Revenue includes net interest income and non-interest income.
(2) Comparatives have been reclassified. Refer to note 21.



19.3 Condensed consolidated total internal revenue (1) contribution by segment

                                                                   2012    2011 (2)
                                                              (Audited)   (Audited)      Change
                                                                     Rm          Rm           %
Banking operations
RBB                                                            (10 252)    (11 727)          13
Retail Markets                                                 (10 080)    (10 935)           8
  Home Loans                                                   (12 082)    (12 888)           6
  Vehicle and Asset Finance                                     (2 498)     (2 435)         (3)
  Card (including Edcon)                                          (745)       (633)        (18)
  Personal Loans                                                  (523)       (569)           8
  Retail Bank                                                     5 750       5 556           3
  AllPay                                                             18          34        (47)
Business Markets                                                  (172)       (792)          78
CIBW                                                             10 622      12 692        (16)
Corporate Centre                                                    253         606        (58)
Capital and funding centres                                       (185)     (1 170)          84
Total banking                                                       438         401           9
Financial Services                                                (438)       (401)         (9)
Total internal revenue                                                -           -           -

Notes
(1) Internal revenue includes net interest income and non-interest income.
(2) Comparatives have been reclassified. Refer to note 21.


19.4 Condensed consolidated total assets by segment
as at 31 December
                                                                   2012    2011 (1)
                                                              (Audited)   (Audited)      Change
                                                                     Rm          Rm           %
Banking operations
RBB                                                             614 999     582 184           6
Retail Markets                                                  501 461     471 476           6
  Home Loans                                                    227 138     239 566         (5)
  Vehicle and Asset Finance                                      51 942      46 511          12
  Card (including Edcon)                                         43 731      29 456          48
  Personal Loans                                                 13 318      13 494         (1)
  Retail Bank                                                   165 145     140 692          17
  AllPay                                                            187       1 757        (89)
Business Markets                                                113 538     110 708           3
CIBW                                                            473 955     466 840           2
Corporate Centre                                              (398 985)   (371 915)          11
Capital and funding centres                                      92 118      83 967          11
Total banking                                                   782 087     761 076           3
Financial Services                                               25 852      25 643           1
Total assets                                                    807 939     786 719           3

Note
(1) Comparatives have been reclassified. Refer to note 21.


20. FAIR VALUE HIERARCHY DISCLOSURES
for the reporting period ended 31 December
Significant transfers of financial instruments between levels
There have been no significant transfers of financial instruments between levels during the current 
reporting period.

                                                               		         2011
                                                            		       (Audited)
			                           Valuations with         Valuations         Valuations 
						      reference to 	     based on 	        based on
						        observable         observable       unobservable
						            prices  	       inputs 		  inputs
                                                           Level 1            Level 2            Level 3
                                                                Rm                 Rm                 Rm
Financial liabilities designated at fair value
through profit and loss
 Deposits due to customers                                       -                655              (655)


21. RECLASSIFICATIONS
as at 31 December
21.1  Some items within the statement of financial position as at 31 December 2011
      and 31 December 2010 were reclassified in the current reporting period. 
	  
Initial margin
During the current reporting period, the Group reclassified certain initial margins placed as collateral
which were previously disclosed as 'Other assets' to 'Loans and advances to banks' and 'Loans and
advances to customers' in order to reflect the true nature of these balances as collateralised loans.
This has resulted in comparatives being reclassified for 2011 and 2010 reporting periods as reflected
in the table that follows:

                                                               		              2011
                                                            		            (Audited)
                                                            As previously
                                                                 reported     Reclassification    Reclassified
                                                                       Rm          	    Rm              Rm
Loans and advances to banks                                        57 432          	    67          57 499
Other assets                                                       16 219     	       (1 489)          14 730
Loans and advances to customers                                   503 503      	         1 422         504 925

                                                               		               2010
                                                            As previously
                                                                 reported     Reclassification    Reclassified
                                                                       Rm                   Rm              Rm
Loans and advances to banks                                        27 495                   77          27 572
Other assets                                                       12 855                (895)          11 960
Loans and advances to customers                                   508 780                  818         509 598


21.2  Some items within the statement of comprehensive income for the reporting period ended 31 December 2011
      were reclassified in the current reporting period.

Elimination of funding interest
During the current reporting period, the Group refined the elimination of funding interest between 'Interest and 
similar income' and 'Interest expense and similar charges'. This has resulted in comparatives being reclassified 
for 2011 reporting period as reflected in the table that follows:
                                                               		              2011
                                                            		            (Audited)
                                                            As previously
                                                                 reported     Reclassification    Reclassified
                                                                       Rm              	    Rm              Rm
Interest and similar income                                        51 221                 (30)          51 191
Interest expense and similar charges                             (26 792)                   30        (26 762)

21.3  Segment reclassifications
The following segment reclassifications have taken place during the current reporting period
- As part of the 'One Absa' strategy, the segments of Retail Markets (previously known as Retail Banking) and Business 
  Markets (previously known as Absa Corporate and Business Bank) were merged into the RBB segment.
- Absa Cash Solutions Group Processing Centre and Integrated Processing Services were moved from Corporate Centre to RBB.
- Absa Development Company Holding Proprietary Limited, a subsidiary of the Group, was segmented into Retail Markets and 
  Business Markets. Its results were previously reported in Retail Markets.
- The Group's corporate customers and products were transferred from Business Markets to CIBW following an initiative to 
  optimise product delivery to its corporate customers.
- Support Services was renamed to Enterprise Core Services, which consists of a significant division namely the Corporate Centre.
- Foreign Exchange Operations and Group Payments were moved from Corporate Centre to CIBW.


Profit and dividend announcement

Salient features
- Diluted headline earnings per share (HEPS) declined 9% to 1224.6 cents.
- Pre-provision profit increased 3% to R21.0 billion.
- Maintained dividend per share (DPS) of 684 cents.
- Revenue grew 2% to R46.9 billion.
- Net-interest margin on average interest-bearing assets narrowed to 3.87% from 4.11%.
- Non-interest income increased 6% to R22.7 billion and accounted for 48.5% of total 
  revenue.
- With operating expenses growth contained to 2%, Absa's cost-to-income ratio improved 
  to 55.2% (2011: 55.5%).
- Loans and advances to customers grew 5% to R528.2 billion.
- Credit impairments increased 63% to R8.3 billion, resulting in a 1.59% credit loss 
  ratio (2011: 1.01%).
- Return on average equity (RoE) decreased to 13.6% (2011: 16.4%).
- Return on average risk-weighted assets (RoRWA) declined to 2.07% and return on average 
  assets to 1.09% (2011: 2.35% and 1.32% respectively).
- Net asset value (NAV) per share grew 7% to 9319 cents.
- Absa Group's Core Tier 1 capital adequacy ratio remained 13.0%, well above regulatory 
  requirements and Board targets.

Overview of results
Absa Group's headline earnings decreased 9% to R8 807 million (2011: R9 719 million).
Diluted HEPS also declined 9% to 1224.6 cents (2011: 1350.0 cents). Our RoE decreased to
13.6% (2011: 16.4%), marginally above our internal cost of equity. We maintained a total
DPS of 684 cents, after considering regulatory changes, our strong capital position,
strategy, growth plans, and near-term business objectives. 

Higher credit impairments, particularly in retail mortgages and commercial property
finance, were the principal reason for lower earnings. Pre-provision profit increased 3%
to R21.0 billion, largely due to continued focus on sustainable operating model changes. 

Retail and Business Banking's (RBB) headline earnings fell 29%, due to substantial
credit impairments and large commercial property equity investment write downs.
Corporate, Investment Banking and Wealth's (CIBW) headline earnings increased 26%,
given strong Markets growth, while Financial Services' decreased 3%.

Operating environment
Global growth remained subdued in 2012. Central banks in advanced economies injected
liquidity into the financial system, helping to improve market sentiment and investor
risk appetite. South Africa's growth slowed sharply in the third quarter to 1.2% from
3.4% the previous quarter, the lowest growth rate since emerging from recession in 2009.
Household consumption expenditure continued to slow, reflecting subdued consumer
confidence, moderating real wage growth, a lacklustre job market and higher inflation.
While private sector credit extension gained traction in 2012, it was mostly in non-
asset backed categories. Inflation moderated in the early part of the year to a low of
4.9%, but has since started to rise steadily, driven by food and petrol prices.


Group performance
Statement of financial position
Total group assets increased 3% to R807.9 billion on 31 December 2012, largely due to 5%
growth in loans and advances to customers and 10% higher statutory liquid assets. Loans
and advances to banks decreased 22%. 

Loans and advances to customers
Gross loans and advances to customers increased 5% to R542.2 billion, almost all in the
second half of 2012, in part due to acquiring Edcon's book, which saw credit cards
increase 54% to R32.8 billion. Retail Markets' gross loans increased 3%, despite 2% 
lower mortgages, given this growth in credit cards and 9% higher vehicle finance. 
New retail volumes improved materially in the second half. Gross Business Markets loans 
declined 2%, after 9% lower commercial property finance. Gross CIBW loans grew 17%, as 
overnight finance and foreign currency loans increased 65% and 36% respectively.

Deposits due to customers
We maintained our strong liquidity position, growing customer deposits 8% or by R36.5 
billion to R477.4 billion. Our funding tenor also remained robust with an average long-
term funding ratio of 26.2% for 2012 from 26.8% in 2011. The weighted average life of 
wholesale funding at 31 December 2012 was 17.6 months from 15.3 months the previous year.  
Deposits due to customers contributed 76.8% of total funding from 72.3% in 2011, 
while the proportion of debt securities in issue dropped to 17% from 21%. Retail 
Markets' deposits increased 4% to R131.7 billion to maintain its leading market share. 
Business Markets' deposits rose 4%, due to 9% growth in cheque accounts. CIBW's deposits 
increased 12%, mainly due to a significant R27.3 billion rise in notice deposits.
Our loans-to-deposits ratio increased to 90% from 88%.

Net asset value
The Group's NAV increased 7% to R66.9 billion, as we generated retained earnings of R3.1 
billion. Absa's NAV per share grew 7% to 9319 cents.

Capital to risk-weighted assets
After implementing Basel II.5 and the AIRB approach on our wholesale book, and growing 
loans and advances to customers 5% in 2012, the Group's risk-weighted assets increased 
3% to R438.2 billion (2011: R424.5 billion). We maintained our strong capital levels, 
which remain above board targets and regulatory requirements. At 31 December 2012, 
Absa Group's Core Tier 1 and Tier 1 capital adequacy ratios were steady at 13.0% and 14.0% 
respectively (2011: 13.0% and 14.1%). The Group's total capital ratio improved to 17.4% 
(2011: 16.7%). Maintaining our 684 cent total DPS is well considered, based on our strong 
capital position, internal capital generation, strategy and growth plans. With strong free 
cash flow generation, our leverage remains low at 12.5 times.

Statement of comprehensive income
Net interest income
Net interest income decreased 1% to R24 111 million (2011: R24 429 million), despite 5% 
higher average interest earning assets. Our net interest margin declined to 3.87% from 4.11%, 
largely because of a lower margin in CIBW. Higher average foreign currency loans and reverse 
repos with banks, which have narrow margins, was the main cause for this decline, although 
it was offset by related foreign currency hedging gains in non-interest income. Our deposit 
margins decreased and liquidity costs increased. These outweighed our improved margin from 
loan mix and better Home Loan pricing. 

Credit losses
Credit impairments rose 63% to R8 290 million (2011: R5 081 million), resulting in a credit 
loss ratio of 1.59% from 1.01%. Retail Market's charge grew 53% to R6.1 billion, increasing 
its credit loss ratio to 1.89% from 1.23%. 

Our Home Loans credit impairments rose to R4.5 billion from R2.2 billion following a thorough 
review of our mortgage provisioning. Higher provisioning for our legal book, particularly 
insolvencies, increased our Home Loans non-performing loan (NPL) coverage to 28.5% from 
17.1% in December 2011 and 22.6% last June. We moved more mortgages into legal during the 
second half, necessitating a higher charge due to lower expected recoveries. Our mortgage 
collections processes were strengthened, which reduced the age of our legal portfolio in the 
second half. We also provided an additional R145 million for performing mortgages given a 
more conservative approach to restructured accounts.     

Vehicle and Asset Finance's credit loss ratio improved to 0.64% from 1.88%, reflecting improved 
collections, while Personal Loans increased, in line with expectations, to 4.68% from 3.87%. 
Early arrears continue to improve across most portfolios. 

Business Markets' R2.1 billion charge increased its credit loss ratio to 2.28% from 0.93%, 
including commercial property finance which rose to R979 million (2011: R219 million) due 
to one large exposure and lower expected collateral realisation values.    

Our total NPLs declined 11% or by R4.1 billion to R31.5 billion. Retail Markets' NPLs fell 
by 20% to R24.0 billion. Group NPLs coverage improved to 37.0% from 27.8%, given the significant 
rise in our mortgage cover. NPLs as a percentage of customer loans and advances improved to 
5.8% from 6.9% in December 2011 and 6.4% last June, despite a large increase in Business Markets' 
NPLs. 

Non-interest income
Non-interest income increased 6% to R22 741 million (2011: R21 403 million). Net fee and 
commission income rose 1%, as 17% higher fee and commission expenses offset 8% growth in 
cheque accounts fees and an 11% increase in merchant income.

Retail Markets' non-interest income was flat at R10.8 billion, largely due to R0.4 billion 
lower AllPay revenue after it lost a government tender. Excluding AllPay, its non-interest 
income grew 4%, with 11% growth in Card and 24% in Vehicle and Asset Finance. Net retail fee 
and commission income declined 1% to R10.4 billion, reflecting increased competition and 
changing customer transactional behaviour. 

Business Markets' net fee and commission income increased 11%, due to enhanced transactional 
capabilities, introducing new products and reducing revenue leakage. Its equities revaluations 
were negative R318 million. Financial Services' net revenue grew marginally to R4.0 billion, 
driven by 8% growth in net insurance premium income, despite higher claims. CIBW's non-interest 
income increased 31%, mainly due to a 64% increase in net trading.  

Operating expenses
Operating expenses increased 2% to R25 874 million (2011: R25 458 million). Excluding higher 
investment property charges it was flat. Staff costs decreased 4% to R13.1 billion, reflecting 
23% lower bonuses and continued focus on operational efficiencies. Non-staff expenses grew 8%, 
due to 13% higher property costs and a 49% rise in other operating expenses. The latter included 
R150 million in costs for our proposed Barclays Africa transaction and higher costs for frauds 
and losses. Professional fees declined 20%. Total IT-related spend, which declined 7% to R5.1 
billion, accounted for 20% of Group costs. Amortisation of intangible assets decreased 12% to R255 
million. 
Retail Markets' operating expenses declined 1% and Financial Services' were flat, while CIBW grew 2%. 
Business Markets' costs rose 13% due to a large negative change in fair value of investment property. 
Absa's cost-to-income ratio improved to 55.2% from 55.5%. Our burden (non-interest income over costs) 
improved to 88% from 84%. 

Taxation
Our taxation decreased 16% to R3 377 million, as our effective tax rate declined to 27.9% from 
28.3%. The lower rate was mainly due to replacing secondary tax on companies with dividend 
withholding tax. 

Segment performance
Retail Markets
Headline earnings fell 19% to R3 436 million (2011: R4 243 million), due to 53% higher credit 
impairments of R6.1 billion. However, pre-provision profits grew 6% to R11.4 billion, as 2% revenue 
growth exceeded 1% lower expenses. Retail Markets' cost-to-income ratio improved to 54.0% from 55.6%. 
Excluding AllPay's lower contribution, non-interest income grew 4%. A R4.5 billion credit impairment 
produced a R992 million loss in Home Loans, despite 7% lower costs and an improved margin. Vehicle and 
Asset Finance earnings grew 96%, due to far lower credit impairments and 24% higher non-interest revenue. 
Card earnings increased 19% to R2.1 billion and represent 24% of Group headline earnings, with Edcon 
contributing R141 million. Personal Loans earnings declined 18%, reflecting lower revenue. Lower costs 
helped Retail Bank's earnings increase 47% to R0.9 billion. Retail Markets' return on regulatory capital 
(RoRC) decreased to 20.1% from 27.5%. We maintained our leading share of retail deposits, customers, branches 
and ATMs.

Business Markets
Headline earnings dropped 51% to R910 million (2011: R1 863 million). The decline reflects a R1 152 million 
pre-tax loss on our equity investment portfolio, lower commercial property finance advances and significantly 
higher credit impairments in commercial property and the rest of Africa. Customer loans and advances declined 3%, 
largely due to lower commercial property finance. 
New business volumes improved during the period, however. Net fees and commissions increased 11% and deposits 4%, 
in line with our strategy. Although underlying local costs rose only 2%, Business Markets' cost-to-income ratio 
increased to 67.9% from 58.8%. RoRC declined to 8.2% from 15.6%.

CIBW
Headline earnings grew 26% to R2 810 million (2011: R2 230 million), as 9% higher net revenue was well above 
expenses growth. Markets revenue increased 19% to R3 843 million largely due to growth in Fixed Income and Credit 
and Africa desk of 35% and 36% respectively. Corporate net revenue decreased 2%, as increased impairments in trade 
and working capital solutions offset growth in cash management, payments and liquidity revenue. Investment Banking's 
net revenue increased 8% to R1 365 million. Private Equity and Infrastructure revenue grew 25% to R397 million, given 
revaluations on improved underlying company performance. Wealth's net revenue increased 9% mainly on improved 
investment management and advisory activities. Containing operating expenses growth to 2% improved CIBW's cost-to-income 
ratio to 54.1% from 58.8%. CIBW's RoRC increased to 20.1% from 18.0%.

Financial Services
Headline earnings decreased 3% to R1 338 million (2011: R1 375 million), due mainly to lower life and short-term insurance 
earnings. Net operating income declined 7% to R1 564 million.  Life premiums grew 12%, but due to a strengthening of the 
policyholder reserves, profits declined 7% to R676 million. Net short-term insurance premiums grew 5% and short term insurance 
profit for the period decreased 16% to R254 million. However, our South African operations'underwriting margin of 4.3% is 
satisfactory in a year where the industry was impacted by significant claims from weather and fire-related events. Absa Investments' 
assets under management grew 14% and its profit for the period increased 6% to R331 million. Net premium income from the rest of 
Africa increased more than 100% to R369 million and net operating income was R27 million. 
Financial Services' RoE declined to 28.2% from 32.0%.

Prospects
Fiscal austerity measures across most advanced economies are the main drag facing the global economy in 2013. Emerging markets 
are expected to perform better, supported by fiscal stimulus and monetary easing. Global growth is expected to remain subdued 
at 3.3% in 2013 from around 3.0% last year. We expect Sub-Saharan Africa to grow 5.7% this year. 

South Africa's strong links with advanced economies are a headwind to growth in 2013, even as trade with the rest of Africa and 
other emerging markets grow robustly. Growth in household consumption (albeit muted) and a rebound in mining production following 
labour unrest late last year, should boost growth. We expect 2.8% growth in 2013 from last year's estimated 2.5%. Given the 
moderate growth in household consumption expenditure, we expect limited demand pressures on inflation in 2013. Our base case for 
the next upward move in rates is in early 2014.

Against this backdrop, we expect mid-single digit loan growth this year. Improved momentum in our revenue growth and continued focus 
on efficiency should reduce our cost to income ratio again. 
Our credit loss ratio is expected to improve materially from last year's elevated levels. Together with capital management initiatives, 
these drivers should increase our RoE. We are excited by our proposed Barclays Africa transaction and the opportunity it offers to 
increase our exposure to higher growth economies in the rest of Africa. 

Basis of presentation
The Group's condensed consolidated financial results have been prepared in accordance with the recognition and measurement requirements 
of International Financial Reporting Standards (IFRS), Interpretations issued by the IFRS Interpretations Committee and AC 500 standards 
as issued by the South African Accounting Practices Board or its successor. The presentation and disclosure complies 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 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, 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.

Accounting policies
The accounting policies applied in preparing the financial results during the reporting period are the same as the accounting policies in 
place for the year ended 31 December 2011. Amendments and changes to IFRS that are mandatory for 31 December 2012 financial year are 
specified in the most recent audited annual consolidated financial statements. These amendments resulted in additional disclosures being 
presented but had a minimal impact on the financial results during the reporting period.

Change in accounting estimate - Policyholder liabilities under insurance contracts

Policyholder liabilities under insurance contracts are valued using Standard of Actuarial Practices (SAP) 104, issued by the Actuarial 
Society of South Africa. SAP104 allows for additional margins if the Statutory Actuary believes that the compulsory margins are 
insufficient for prudent provisioning and/or to defer the release of profits in line with policy design and Company practice. 
These margins are incorporated into the liability calculations.

It is the Company's policy that profit margins contained in the premium basis, which are expected to be released in future as the 
business runs off, should not be capitalised and recognised pre-maturely. Such margins should only be released to profits once 
premiums have been received and the risk cover has been provided.

Management considered it appropriate to provide for these margins as a result of not having sufficiently large volumes of business 
and accompanying data. As a result there were random fluctuations in the policyholder liabilities and the discretionary margins 
provided to some extent a buffer against these fluctuations. However the volumes of business have shown positive growth over the past 
reporting periods and a more credible volume of data has emerged. 
Management have set the margins to 0% (2011: 0%). The only remaining discretionary margin is to hold a liability equal to the 
surrender value of a policy and the elimination of all negative liabilities. This margin mainly represents a mass lapse scenario to 
ensure that solvency is maintained if all in-force policies are cancelled.

Reclassifications
During the current reporting period, the Group reclassified certain initial margins placed as collateral which were previously disclosed 
as 'Other assets' to 'Loans and advances to banks' and 'Loans and advances to customers' in order to better reflect the true nature 
of these balances as collateralised loans. This has resulted in comparatives being reclassified for 31 December 2011 (loans and advances 
to banks R67 million, other assets (R1 489 million) and loans and advances to customers R1 422 million) and 31 December 2010 (loans and 
advances to banks R77 million, other assets (R895 million) and loans and advances to customers R818 million).

During the current reporting period, the Group refined the elimination of funding interest between 'Interest and similar income' and 
'Interest expense and similar charges'. This has resulted in comparatives being reclassified for the 2011 reporting 
period (interest and similar income R30 million, and interest expense and similar charges (R30 million)).

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 management prepared the condensed consolidated financial results. 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 2012, 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 not indicated as audited. The audit report of the consolidated 
annual financial statements is available for inspection at Absa Group Limited's registered office. 

Events after the reporting period
The directors are not aware of any events occurring between the reporting date of 31 December 2012 and the date of authorisation of 
these condensed consolidated financial results as defined in IAS 10.

On behalf of the board

G Griffin 						M Ramos
Group Chairman 						Group Chief Executive
Johannesburg
12 February 2013

 
Declaration of final ordinary dividend number 53
Shareholders are advised that a final ordinary dividend of 369 cents per ordinary share was declared today, 12 February 2013, for 
the year ended 31 December 2012. This brings the total dividend for the year ended 31 December 2012 to 684 cents per share. The 
ordinary dividend is payable to shareholders recorded in the register of members of the Company at the close of business on 
5 April 2013. The directors of Absa Group confirm that the Group will satisfy the solvency and liquidity test immediately after 
completion of the dividend distribution.

The dividend will be subject to the dividend tax that was introduced with effect from 1 April 2012. In accordance with paragraphs 
11.17 (a) (i) to (x) 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 fifteen per centum (15%).
- The gross local dividend amount is 369 cents per ordinary share for shareholders 
  exempt from the dividend tax.
- The net local dividend amount is 313,65000 cents per ordinary share for shareholders 
  liable to pay for the dividend tax.
- Absa Group currently has 718 210 043 ordinary shares in issue (includes 547 750 
  treasury shares).
- Absa Group's income tax reference number is 9150116714.

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                          Wednesday, 27 March 2013
Shares commence trading ex dividend                     Thursday, 28 March 2013
Record date                                             Friday, 5 April 2013
Payment date                                            Monday, 8 April 2013
Share certificates may not be dematerialised or rematerialised between Thursday, 28 March 2013 and Friday, 5 April 2013, both dates 
inclusive.

On Monday, 8 April 2013, the dividend will be electronically transferred to the bank accounts of certificated shareholders who use 
this facility. In respect of those who do not, cheques dated 8 April 2013 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, 
8 April 2013.

On behalf of the board
NR Drutman
Company Secretary
Johannesburg
12 February 2013

Absa
Group Limited is a company domiciled in South Africa. Its registered office is the 7th Floor, Absa Towers West, 15 Troye Street, 
Johannesburg, 2001. 


Administration and contact details
These audited condensed 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 consolidated financial statements will be available from 31 March 2013, either on www.absa.co.za or, 
on request at the registered address of the Group.


Absa Group Limited is a company domiciled in South Africa.


Absa Group Limited
Registered office
7th Floor, Absa Towers West
15 Troye Street
Johannesburg, 2001
PO Box 7735
Johannesburg, 2000
Telephone: (+27 11) 350 4000
E-mail: groupsec@absa.co.za


Board of directors
Group independent non-executive directors
C Beggs, YZ Cuba,
SA Fakie, G Griffin (Group Chairman),
MJ Husain, PB Matlare,
TM Mokgosi-Mwantembe,EC Mondlane Jr1, 
TS Munday, SG Pretorius,BJ Willemse 

Group non-executive directors
AP Jenkins2, R Le Blanc2, 
IR Ritossa3,4 ,LL von Zeuner5

Group executive directors
DWP Hodnett (Group Financial Director), 
M Ramos (Group Chief Executive)

Notes
1 Mozambican
2 British
3 Australian
4 Resigned 31 December 2012
5 Became a non-executive, effective 1 January 2013


Transfer secretary
South Africa
Computershare Investor Services
Proprietary Limited
70 Marshall Street
Johannesburg, 2001
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


Auditors
PricewaterhouseCoopers Inc.
Ernst & Young Inc.


Lead Independent Sponsor
J P Morgan Equities South Africa Proprietary Limited,
No 1 Fricker Road, Cnr. Hurlingham Road,
Illovo, Johannesburg, 2196
Private Bag X9936
Sandton, 2146
Telephone: (+27 11) 507 0300
Telefax: (+27 11) 507 0503


Joint Sponsor
Absa Corporate and Investment Banking,
a division of Absa Bank Limited,
15 Alice Lane
Sandton, 2196
Private Bag X10056
Sandton, 2146
Telephone: (+27 11) 506 7951/(+27 11) 895 6821
Telefax: (+27 11) 895 7809


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 2598
E-mail: investorrelations@absa.co.za


Company Secretary
NR Drutman
Telephone: (+27 11) 350 5347
E-mail: groupsec@absa.co.za


Other contacts
Group Media Relations
M Pirikisi (General Manager: Media Relations)
Telephone: (+27 11) 350 4787
E-mail: maxwellp@absa.co.za


Head office switchboard
Telephone: (+27 11) 350 4000


Group Finance
R Stromsoe (Head: Group Finance)
Telephone: (+27 11) 895 6365


Website address
www.absa.co.za
Date: 12/02/2013 07:30:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
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