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Summary consolidated results for the reporting period ended 31 December 2023 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
ETN Issuer Code: ABSN1
Hybrid Issuer Code: ABSH
("Absa Bank" or the "Company" or "Group")
Summary consolidated results
for the reporting period ended 31 December 2023 and preference share dividend declaration
Empowering Africa's tomorrow, together
...one story at a time
We are an African financial services provider, united in a clear purpose. We live our purpose
through our operations in our presence countries. We believe in Africa's potential and are
invested in creating, nurturing and protecting wealth and growth on our continent. We play an
integral role in the economic lives of individuals, businesses and nations, while leading the
way to a sustainable future.
We are listed on the Johannesburg Stock Exchange and have representative offices in Namibia,
Nigeria, and the United States, along with technology support in the Czech Republic.
- 5 countries
- 618 outlets*
- 5 250 ATMs
- 27 085 employees
- 3 million digitally active customers
- 9.8 million active customers
* Outlets include branches and sales centres.
Normalised financial results as a consequence of Barclays PLC Separation
A normalised view of the 2023 annual results is provided which adjusts for the consequences of
the separation from Barclays PLC. This view better reflects the Group's underlying performance.
IFRS Accounting Standards (referred to as IFRS throughout this document) compliant financial
results are presented as required by the Companies Act and the JSE Listings Requirements.
The normalised results are considered to be pro forma financial information in terms of the
JSE Listings Requirements. The normalised results have been prepared for illustrative purposes
only and, because of their nature, may not fairly present Absa Bank's financial position and
results of operations.
Performance overview for the period ended 31 December
Total income
2023 Increased 2.3% 2022 2023 Increased 2.2% 2022
R65 535m IFRS R64 074m R65 408m Normalised R64 016m
Normalised total income has been adjusted by R127m (2022: R58m), mainly consisting of a net interest
income of R127m (2022: R58m)
Headline earnings per ordinary share
2023 Decreased 36.4% 2022 2023 Decreased 34.0% 2022
1 652.0 cents IFRS 2 598.7 cents 1 805.7 cents Normalised 2 737.9 cents
Basic earnings per ordinary share
2023 Decreased 37.3% 2022 2023 Decreased 34.1% 2022
1 583.1 cents IFRS 2 523.8 cents 1 754.6 cents Normalised 2 662.9 cents
Net asset value per ordinary share
2023 Increased 1.6% 2022 2023 Increased 2.7% 2022
20 611.8 cents IFRS 20 279.2 cents 20 085.9 cents Normalised 19 552.1 cents
Return on equity
2023 2022 2023 2022
8.2% IFRS 13.0% 9.2% Normalised 14.2%
Performance overview for the period ended 31 December
Cost-to-income ratio
2023 2022 2023 2022
61.7% IFRS 57.9% 60.3% Normalised 56.6%
Net interest margin
2023 2022 2023 2022
3.57% IFRS 3.67% 3.56% Normalised 3.67%
Dividend per preference share
2023 Increased 16.9% 2022
4 101.23286 cents IFRS 3 509.58904 cents
Loans and deposits growth
- Gross loans and advances (Increased 4.7%) R1 116.6bn (2022: R1 066.0bn)
- Deposits (Increased 7.3%) R1 089.5bn (2022: R1 015.6bn)
Risk profile
- Stage 3 loans ratio to gross loans and advances 5.83% (2022: 4.92%)
Liquidity coverage ratio
- 127.5% (2022: 129.0%)
Sound capital
- Common Equity Tier 1 ratio 11.9% (2022: 12.5%)
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 annual consolidated financial statements.
Any investment decisions by shareholders should be based on consideration of the annual consolidated
financial statements published on https://www.absa.africa/absaafrica/investor-relations/annual-reports/
and on the following JSE cloud links: https://senspdf.jse.co.za/documents/2024/jse/issh/ABSH/Bank-FYE23.pdf
and https://senspdf.jse.co.za/documents/2024/jse/issb/BIABS/Bank-FYE23.pdf
While this announcement is not audited, the annual consolidated financial statements from which
the results are derived, were audited by PwC and KPMG, who expressed an unmodified opinion thereon.
The full audit opinion is available at the following link
https://www.absa.africa/absaafrica/investor-relations/annual-reports/ as part of the Group's annual
consolidated financial statements.
The annual financial statements and auditors' report thereon are available for inspection at the
Company's registered office.
Registered office
7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001
Board of directors
Independent non-executive directors
S Moloko (Chairman), T Abdool-Samad, R Keanly, N Mjoli-Mncube (Lead Independent Director), R van Wyk
Executive directors
A Rautenbach (Chief Executive Officer)
C Snyman (Interim Financial Director)
Declaration of a final preference share dividend number 36
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 11.75%.
Notice is hereby given that preference dividend number 36, equal to 70% of the average prime rate
for 1 September 2023 to 29 February 2024, has been declared on 11 March 2024.
The dividend is payable on Monday, 22 April 2024, to shareholders of the Absa Bank preference shares
recorded in the register of members of the Company at the close of business on Friday, 19 April 2024.
The directors of Absa Bank Limited confirm that the Company will satisfy the solvency and liquidity
test immediately after completion of the dividend distribution and for the next 12 months.
Based on the average prime rate, the preference dividend payable for the period 1 September 2023
to 29 February 2024 would indicatively be 4 101.23286 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 4 101.23286 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
3 280.98629 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 the JSE Limited, the following salient dates for the payment of the dividend are applicable:
Last day to trade cum dividend Tuesday, 16 April 2024
Shares commence trading ex-dividend Wednesday, 17 April 2024
Record date Friday, 19 April 2024
Payment date Monday, 22 April 2024
Share certificates may not be dematerialised or rematerialised between Wednesday, 17 April 2024 and
Friday, 19 April 2024, both dates inclusive. On Monday, 22 April 2024, the dividend will be
electronically transferred to the bank accounts of shareholders. The accounts of those shareholders
who have dematerialised their shares (which are held at their participant or broker) will also be
credited on Monday, 22 April 2024.
On behalf of the Board
N R Drutman
Company Secretary
Johannesburg
11 March 2024
Absa Bank 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 (Corporate and Investment Bank)
www.absa.africa/absaafrica/investor-relations/financial-results/
Date: 11-03-2024 07:35:00
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