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ABSA GROUP LIMITED - ABG - Unaudited interim results for the reporting period ended 30 June 2019 and interim dividend declaration

Release Date: 13/08/2019 07:09
Code(s): ABG     PDF:  
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ABG - Unaudited interim results for the reporting period ended 30 June 2019 and interim dividend declaration

Absa Group Limited
Registration number: 1986/003934/06
Incorporated in the Republic of South Africa
JSE share code: ABG
ISIN: ZAE000255915
Bond Issuer Code: ABGI

Unaudited interim results for the reporting period ended 30 June 2019 and interim dividend

We are an African group, inspired by the people we serve and determined to be a group that is globally
respected and that Africa can be proud of.
We are committed to finding local solutions to uniquely local challenges and everything we do focuses
on adding value.

2019 priorities

To achieve sustained above-market growth, our immediate and highest priorities are to:
1. Gain market share in Retail and Business Banking South Africa (RBB SA) and better serve customers
across their life stages to retain them.
2. Deliver the Separation from Barclays PLC successfully in Corporate and Investment Bank (CIB)
through the right prioritisation of the 2019 change project portfolio.
3. Deepen our core Corporate and Investment Bank capabilities and expand our coverage model and
integrated transaction banking solutions.
4. Enhance digital customer enablement (full end-to-end self-service).
5. Drive an integrated bank assurance delivery model within our business, leveraging the capabilities
and resources of the Bank to deliver efficiencies.

Normalised financial results as a consequence of Barclays PLC separation

A normalised view of the 2019 interim results is provided which adjusts for the consequences of the
separation from Barclays PLC. This view better reflects the Group’s underlying performance.
International Financial Reporting Standards (IFRS) compliant financial statements 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. Normalised results will be presented
for future periods to the extent that the financial impact of the Separation is considered material.

Performance overview for the period ended 30 June

Total income
 2019                             Increased 5%      2018
 R39 152m                         IFRS              R37 316m

 2019                             Increased 6%      2018
 R39 071m                         Normalised        R36 728m

Headline earnings per ordinary share
 2019                             Increased 5%      2018
 920.0 cents                      IFRS              880.3 cents

 2019                             Increased 3%      2018
 977.5 cents                      Normalised        952.2 cents

Basic earnings per share
 2019                             Increased 5%      2018
 918.9 cents                      IFRS              871.9 cents

 2019                             Increased 3%      2018
 976.5 cents                      Normalised        943.8 cents

Net asset value per ordinary share
 2019                              Increased 5%     2018
 13 534 cents                      IFRS             12 915 cents

 2019                             Increased 7%      2018
 12 335 cents                     Normalised        11 526 cents

Return on equity
 2019                             Decreased         2018
 14.0%                            IFRS              14.1%

 2019                             Increased         2018
 16.4%                            Normalised        17.1%
Cost-to-income ratio
 2019                              Decreased      2018
 58.7%                             IFRS           59.5%

 2019                              Increased      2018
 56.7%                             Normalised     56.7%

Net interest margin
 2019                              Decreased      2018
 4.52%                             IFRS           4.69%

 2019                              Decreased      2018
 4.52%                             Normalised     4.69%

Dividend per ordinary share
 2019                              Increased 3%   2018
 505 cents                         IFRS           490 cents

Strong loans and deposits
Loans and advances to customers
(30 June 2018: R781bn)
Deposits due to customers
(30 June 2018: R714bn)
Well managed Risk profile
Stage 3 loans ratio to gross loans and advances
(30 June 2018: 5.31%)
Credit loss ratio
(30 June 2018: 0.75%)
Sound capital
Common equity tier 1 ratio
(30 June 2018: 13.3%)

Administrative information
This short-form announcement is the responsibility of the directors of Absa Group 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
and on the following JSE link:

Copies of the full announcement may be requested from Absa Group Limited Investor Relations at

Registered office
7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001

Board of directors
Group independent non-executive directors
T Abdool-Samad, C Beggs, A B Darko(1), M J Husain (Lead Independent Director), W E Lucas-Bull (Group
Chairman), M S Merson(2), D Naidoo, F Okomo-Okello(3), S M Pityana

Group non-executive director
D J Hodge (2)

Group executive directors
P B Matlare (Deputy Chief Executive Officer), J P Quinn (Financial Director), R van Wyk (Chief Executive
(1) Ghanaian
(2) British
(3) Kenyan

Declaration of interim ordinary dividend number 66

Shareholders are advised that an interim ordinary dividend of 505 cents per ordinary share was
declared on 13 August 2019, for the period ended 30 June 2019. The interim ordinary dividend is
payable to shareholders recorded in the register of members of the Company at the close of business
on 13 September 2019. The directors of Absa Group Limited confirm that the Group will satisfy the
solvency and liquidity test immediately after completion of the dividend distribution.

The dividend will be subject to local 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 505 cents per ordinary share for shareholders exempt from the
dividend tax.
*The net local dividend amount is 404 cents per ordinary share for shareholders liable to pay the
dividend tax.
*Absa Group Limited currently has 847 750 679 ordinary shares in issue (includes 16 545 370 (1)
treasury shares).
*Absa Group Limited’s income tax reference number is 9150116714.

In compliance with the requirements of Strate, the electronic settlement and custody system used by
the JSE, the following salient dates for the payment of the dividend are applicable:
 Last day to trade cum dividend                            Tuesday, 10 September 2019
 Shares commence trading ex-dividend                       Wednesday, 11 September 2019
 Record date                                               Friday, 13 September 2019
 Payment date                                              Monday, 16 September 2019

(1)Includes 14 470 659 Group shares to be used in the furtherance of the Group’s objective of
establishing a BBBEE structure.

Share certificates may not be dematerialised or rematerialised between Wednesday, 11 September
2019 and Friday, 13 September 2019, both dates inclusive. On Monday, 16 September 2019, the
dividend will be electronically transferred to the bank accounts of certificated 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, 16 September 2019.

On behalf of the Board
N R Drutman
Group Company Secretary

13 August 2019

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

Independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited

Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)

Date: 13/08/2019 07:09:00
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