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ABSP/ BIABS - Short form: Audited summary consolidated results - FYE 31 Dec 2021 and Preference Share Dividend
Absa Bank Limited
Registration number: 1986/004794/06
Incorporated in the Republic of South Africa
JSE share code: ABSP
ISIN: ZAE000079810
Bond Issuer Code: BIABS
(“Absa Bank” or the “Company”)
Audited summary consolidated results for the reporting period ended 31 December 2021 and preference share dividend
declaration.
We are a Pan-African group, inspired by the people we serve and determined to be a globally respected organisation of which
Africa can be proud. As a financial services provider, we play an integral role in the economic life of individuals, businesses, and
nations. To this end, we offer a universal set of products and services across retail, business, corporate, investment and wealth
banking, as well as investment management and insurance solutions.
We are listed on the Johannesburg Stock Exchange and have representative offices in Namibia, Nigeria and the United States as
well as securities entities in the United Kingdom along with technology support in Czech Republic.
We help create, grow and protect wealth through partnerships in economic development, while playing a shaping role in Africa’s
growth and sustainability.
6 countries
616 outlets*
7 613 ATMS
25 908 employees
2.1m digitally active customers
104 877 point-of-sale devices
*Outlets include branches and sales centres.
We bring possibilities to life
Possibilities come to life when we meet every challenge with tenacity, ingenuity, positivity and creativity. We coined a new word
for our purpose, which is the driving force behind everything we do, a way of doing things that is unique to our continent.
We call it Africanacity
Normalised financial results as a consequence of Barclays PLC Separation
A normalised view of the 2021 annual results is provided which adjusts for the consequences of the separation from Barclays PLC.
This view better reflects the Bank’s underlying performance. International Financial Reporting Standards (IFRS) compliant financial
results will continue to be presented as required by the Companies Act and the JSE Limited (JSE) Listings Requirements and include
a reconciliation between the normalised and IFRS views.
Performance overview for the period ended 31 December 2021
Total income
2021 Increased 9.0% 2020 2021 Increased 9.4% 2020
R58 492m IFRS R53 687m R58 468m Normalised R53 464m
Headline earnings per ordinary share
2021 Increased >100% 2020 2021 Increased >100% 2020
2 392.6 cents IFRS 312.7 cents 2 532.9 cents Normalised 592.0 cents
Basic earnings per share
2021 Increased >100% 2020 2021 Increased >100% 2020
2 358.5 cents IFRS 262.3cents 2 507.0 cents Normalised 564.4 cents
Net asset value per ordinary share
2021 Increased 8.9% 2020 2021 Increased 11.3% 2020
20 100 cents IFRS 18 458 cents 19 191 cents Normalised 17 247 cents
Return on equity
2021 Increased 2020 2021 Increased 2020
12.5% IFRS 1.7% 13.9% Normalised 3.5%
Cost-to-income ratio
2021 Decreased 2020 2021 Decreased 2020
60.2% IFRS 61.8% 58.5% Normalised 59.0%
Net interest margin
2021 Increased 2020 2021 Increased 2020
3.60% IFRS 3.25% 3.60% Normalised 3.25%
Dividend per preference share
2021 Decreased 4.0% 2020
4 964.25 cents IFRS 5 170.89 cents
Loans and deposits growth
Gross loans and advances (Increased 6%)
R964.2 bn (2020: R911.2 bn)
Deposits Increased 9%
R974.1bn (2020: R890. 9bn)
Risk profile
Stage 3 loans ratio to gross loans and advances
5.14% (2020: 6.18%)
Liquidity Coverage Ratio:
124.5% (2020: 126.9%)
Sound capital
Common Equity Tier 1 ratio
12.4% (2020: 10.6%)
Short form statement
This short-form announcement is the responsibility of the directors of Absa Bank Limited. It is only a summary of the information
in the full announcement. Any investment decisions by stakeholders should be based on consideration of the full announcement
published on https://www.absa.africa/absaafrica/investor-relations/financial-results/ and on the following JSE link:
https://senspdf.jse.co.za/documents/2022/jse/issh/ABSH/AbsaFY2021.pdf
While this announcement is not audited, the consolidated annual financial statements from which the results
are derived were audited by Ernst & Young Inc. and KPMG Inc., who expressed an unmodified opinion thereon. The full audit
opinion, including any key audit matters, is available at the following link https://www.absa.africa/absaafrica/investor-
relations/annual-reports/ as part of the Bank's full annual financial statements which have been released on 14 March
2022. The annual financial statements and auditors’ report thereon are available for inspection at the Company’s registered
office. The full year end report is available on the Company’s website, copies of the full announcement may also be
requested at the Company’s registered office, at no charge, during office hours on normal business days, subject to COVID-
19 office protocols.
Registered office
7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001
Board of directors
Bank Independent non-executive directors
W E Lucas-Bull (Independent Chairman), S Moloko (Chairman designate), T Abdool-Samad, F Okomo-Okello(2) , A B Darko(1) (3), R A
Keanly, N S Mjoli-Mncube (Lead independent director), R van Wyk
Bank Executive directors
J P Quinn (Interim Group Chief Executive), P E Modise (Interim Group Financial Director)
(1) British
(2) Kenyan
(3) Ghanaian
Declaration of a final preference share dividend number 32
The Absa Bank preference shares have an effective coupon rate of 70% of Absa Bank’s prevailing prime overdraft lending rate
(prime rate). Absa Bank’s current prime rate is 7.5%.
Notice is hereby given that preference dividend number 32, equal to 70% of the average prime rate for 1 September 2021 to 28
February 2022. The dividend is payable on Monday, 25 April 2022, to shareholders of the Absa Bank preference shares recorded
in the Register of Members of the Company at the close of business on Friday, 22 April 2022.
The Board of Absa Bank confirm that the Bank will satisfy the solvency and liquidity test immediately after completion of the
dividend distribution.
Based on the average prime rate, the preference dividend payable for the period 1 September 2021 to 28 February 2022 would
be 2 494.10959 cents per Absa Bank preference share.
The dividend will be subject to dividends withholding tax at a rate of 20%. In accordance with paragraphs 11.17(a)(i) to (ix) and
11.17(c) of the JSE Listings Requirements, the following additional information is disclosed:
› The dividend has been declared out of income reserves.
› The local dividend tax rate is twenty per cent (20%).
› The gross local dividend amount is 2 494.10959 cents per preference share for shareholders exempt from the dividend
tax.
The net local dividend for shareholders subject to withholding tax at a rate of 20% amounts to 1 995.28767 cents per
preference share.
› Absa Bank currently has 4 944 839 preference shares in issue.
› Absa Bank’s income tax reference number is 9575117719.
In compliance with the requirements of Strate, the electronic settlement and custody system used by JSE, the following salient
dates for the payment of the dividend are applicable:
Last day to trade cum dividend Tuesday, 19 April 2022
Shares commence trading ex-dividend Wednesday, 20 April 2022
Record date Friday, 22 April 2022
Payment date Monday, 25 April 2022
Share certificates may not be dematerialised or rematerialised between Wednesday, 20 April 2022 and Friday, 22 April 2022, both
dates inclusive. On Monday, 25 April 2022, the dividend will be electronically transferred to the bank accounts of shareholders.
On behalf of the Board
N R Drutman
Company Secretary
Johannesburg
14 March 2022
Absa Bank Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West, 15 Troye Street,
Johannesburg, 2001.
Sponsors
Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited
Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)
Date: 14-03-2022 07:23:00
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