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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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