Wrap Text
ABKI - Release of the unaudited Interim Financial Results for African Bank Limited and related Group Information
AFRICAN BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registered Bank)
(Registration No. 2014/176899/06)
Company code: ABKI
(“the Bank” or “African Bank”)
RELEASE OF THE UNAUDITED INTERIM FINANCIAL RESULTS FOR AFRICAN BANK LIMITED
AND RELATED GROUP INFORMATION FOR THE SIX MONTHS ENDED 31 MARCH 2019
African Bank is pleased to announce the release of the unaudited interim financial
statements for the six months ended 31 March 2019 (“results”).
These results represent the sixth set of financial results reported by the Bank and its holding
company African Bank Holdings Limited (“ABH” or “ABH Group”) which presented the
consolidated ABH Group results for the same six-month period ended 31 March 2019.
African Bank has had another successful six-month period as shown in these results, during
a period in which the Bank has invested in new initiatives, allowing it to diversify its
business. The Bank launched its transactional banking proposition, MyWORLD, which signals
a new phase in the Bank’s growth. Retail deposit customers continue to show trust in the
Bank, as evidenced by the significant increase in savings and investments deposits. The cost
of credit risk continues to decrease, while new credit disbursements have increased against
a backdrop of stricter credit underwriting criteria. This is also testament to the increased
efficiencies between the Bank’s distribution network and the alignment of its marketing
campaigns. The ABH Group has been able to achieve all of this whilst maintaining robust
capital levels and surplus liquidity, and believes that the combination of these factors
present African Bank as an attractive and investable proposition.
Key aspects of the African Bank results include the following, in comparison to the African
Bank unaudited interim financial statements for the six months ended 31 March 2018:
• Retail customer deposits: R1 489 million (2018: R680 million)
• Credit impairment charge: R970 million (2018: R1 713 million)
• Net customer advances balances: R19 182 million (2018: R18 969 million)
• Profit for the period: R69 million (2018: R77 million)
• Cash deposits, including surplus liquid assets: R5 990 million (2018: R8 668 million)
• Core Equity Tier 1 capital adequacy ratio: 30.1% (2018: 32.0%)
ABH Group information
African Bank is a 100% subsidiary of ABH. ABH is an unlisted, registered bank controlling
company under the Banks Act, Act No. 94 of 1990. The shares in ABH are privately held by
the South African Reserve Bank, the Government Employees Pension Fund, Absa Group
Limited, Capitec Bank Limited, FirstRand Bank Limited, Investec Bank Limited, Nedbank
Limited and The Standard Bank of South Africa Limited.
The ABH Group has material insurance operations that are housed in African Insurance Group
Limited (“AIG”), a separate 100% held subsidiary of ABH, which in turn holds a cell captive
investment in Guardrisk Limited (“cell captive investment”). The cell captive investment,
owned 100% by AIG, is not consolidated by the ABH Group according to International
Financial Reporting Standards (“IFRS”), although the financial performance of this entity is
dealt with in the unaudited consolidated interim financial statements of the ABH Group, by
means of a re-measurement of the investment in insurance contracts.
ABH has today also released its unaudited consolidated interim financial statements for the
six months ended 31 March 2019 (“ABH consolidated results”).
Key aspects of the ABH consolidated results include the following, in comparison to the ABH
unaudited consolidated interim financial statements for the six months ended 31 March
2018:
• Profit for the period: R533 million (2018: R448 million)
• Profit before tax and foreign exchange losses with insurance profits grossed up for tax
purposes: R740 million (2018: R715 million)
• Earnings from Insurance operations: R613 million (2018: R516 million)
Shareholder-backed liquidity support arrangement
The Bank continues to work closely with the ABH Group shareholders in respect of a planned
shareholder-backed liquidity support arrangement.
Results publication material
The following published results in respect of the six months ended 31 March 2019 can be
accessed on African Bank’s website www.africanbank.co.za under the “Investors” –
“Corporate Information” – “Financial Information” path on such website:
1. African Bank Holdings Limited Investor Presentation and Interim Results Booklet
2. African Bank Holdings Limited unaudited Group Consolidated Condensed Interim
Financial Statements
3. African Bank Limited unaudited Condensed Interim Financial Statements
4. African Bank Limited and African Bank Holdings Limited Basel Pillar III Disclosure
Documents
5. African Bank Holdings Limited IFRS 9 – Financial Instruments Transition Report
Conference call details, presentation material and playback facility
Interested parties are invited to register for a conference call during which Basani Maluleke
and Gustav Raubenheimer, ABH Group CFO, will take participants through the ABH Group
results. Details of the conference call are:
Date Tuesday, 28 May 2019
Time 10h00 SAST/CAT
Web pre-registration Interested parties are requested to pre-register for this
conference call at www.diamondpass.net/8167232 and
follow the instructions provided
28 May 2019
Debt Sponsor
RAND MERCHANT BANK
(A division of FirstRand Bank Limited)
Think Precinct, 1 Merchant Place
Cnr Fredman Drive & Rivonia Road
Sandton 2196, South Africa
P O Box 786273, Sandton, 2146, South Africa
Date: 28/05/2019 08:00:00 Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE').
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
Sharenet Sites 
