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Financial results for the reporting period ended 31 December 2019 and final ordinary 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
Audited summary consolidated financial results for the reporting period ended 31 December 2019 and final ordinary
dividend declaration.
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.
2020 priorities
To accelerate our business momentum and transform our strategic trajectory, we have selected seven key priorities for the
year ahead with regard to the unfolding macro-economic environment.
1. Grow customer and client primacy ahead of the market across our business portfolio.
2. Advance the digital maturity of our business to be competitive.
3. Create new revenue streams by building a market leading payments capability.
4. Complete the Separation successfully.
5. Accelerate our journey of becoming a thriving, entrepreneurial organisation supported by an enabling organisational
architecture.
6. Leverage strategic partnerships.
7. Drive operational efficiencies.
Normalised financial results as a consequence of Barclays PLC separation
A normalised view of the 2019 results is provided which adjusts for the consequences of the separation from
Barclays PLC (Separation). This view better reflects Absa 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.
Non-IFRS measures such as normalised results are considered pro forma financial information as per JSE Listing
Requirements. The pro forma financial information, is the responsibility of the Group’s Board of directors and is presented
for illustrative purpose only and because of its nature may not fairly present the Group’s financial position, changes in
equity, and results in operations or cash flows. The pro forma financial information contained in this announcement has
been reviewed by Absa Group’s external auditors and their unmodified limited assurance report prepared in terms of ISAE
3420 is available for inspection at the Company’s registered office on weekdays from 09:00 to 16:00.
Absa Group Limited Summary consolidated financial results for the reporting period 31 December 2019 1
Performance overview for the period ended 31 December
Total income
2019 Increased 5% 2018 2019 Increased 6% 2018
R80 120m IFRS R76 515m R79 961m Normalised R75 660m
Headline earnings per ordinary share
2019 Increased 3% 2018 2019 Increased 1% 2018
1 750.1 cents IFRS 1703.7 cents 1926.0 cents Normalised 1913.4 cents
Basic earnings per share
2019 Increased 2% 2018 2019 Increased 0.44% 2018
1717.6 cents IFRS 1676.5 cents 1895.0 cents Normalised 1886.7 cents
Net asset value per ordinary share
2019 Increased 3% 2018 2019 Increased 5% 2018
13 669 cents IFRS 13 233 cents 12 605 cents Normalised 11 985 cents
Return on equity
2019 Decreased 2018 2019 Decreased 2018
13.1% IFRS 13.4% 15.8% Normalised 16.8%
Cost-to-income ratio
2019 Decreased 2018 2019 Increased 2018
60.9% IFRS 61.2% 58.0% Normalised 57.7%
Net interest margin
2019 Decreased 2018 2019 Decreased 2018
4.50% IFRS 4.65% 4.50% Normalised 4.64%
Dividend per ordinary share
2019 Increased 1% 2018
1 125 cents IFRS 1 110 cents
Strong loans and deposits growth
Loans and advances to customers
R917bn (2018: R842bn)
Deposits due to customers
R826bn (2018: R736bn)
Well managed risk profile
Stage 3 loans ratio to gross loans and advances
4.67% (2018: 5.10%)
Absa Group Limited Summary consolidated financial results for the reporting period 31 December 2019 2
Credit loss ratio
0.80% (2018: 0.73%)
Sound capital
Common Equity Tier 1 ratio
12.1% (2018: 12.8%)
Short form statement
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
https://www.absa.africa/absaafrica/investor-relations/financial-results/ and on the following JSE link:
https://senspdf.jse.co.za/documents/2020/jse/isse/ABGE/Final19.pdf
This announcement has not been audited. The annual financial statements were audited by Ernst & Young Inc., who
expressed an unmodified opinion thereon. The full audit opinion, including any key audit matters, will be available at
https://www.absa.africa/absaafrica/investor-relations/financial-results/ when Absa Group's full annual financial statements
are released on or about 31 March 2020. 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
Group independent directors
T Abdool-Samad, C Beggs, A B Darko, M J Husain (Lead Independent Director), R A Keanly, W E Lucas-Bull (Independent
Chairman), M S Merson, S J Munyantwali, D Naidoo, F Okomo-Okello, S M Pityana, I Rensburg
Group non-executive director
D J Hodge
Group executive directors
P B Matlare (Deputy Chief Executive and Chief Executive: Absa Regional Operations), D Mminele (Group Chief Executive),
J P Quinn (Financial Director)
Declaration of ordinary dividend number 67
Shareholders are advised that an ordinary dividend of 620 cents per ordinary share was declared on 11 March 2020, for
the period ended 31 December 2019. The ordinary dividend is payable to shareholders recorded in the register of
members of the Company at the close of business on Friday, 17 April 2020. The directors of Absa Group Limited confirm
that Absa 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 620 cents per ordinary share for shareholders exempt from the dividend tax.
- The net local dividend amount is 496 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 19 122 853(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 Limited, the
following salient dates for the payment of the dividend are applicable:
Last day to trade cum dividend Tuesday, 14 April 2020
Shares commence trading ex-dividend Wednesday, 15 April 2020
Record date Friday, 17 April 2020
Payment date Monday, 20 April 2020
Share certificates may not be dematerialised or rematerialised between Wednesday, 15 April 2020 and Friday, 17 April
2020, both dates inclusive. On Monday, 20 April 2020, 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, 20 April 2020.
On behalf of the Board
N R Drutman
Group Company Secretary
Johannesburg
11 March 2020
Absa Group Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West, 15 Troye
Street, Johannesburg, 2001.
(1)
Includes shares to be utilised when establishing a BBBEE structure.
Absa Group Limited Summary consolidated financial results for the reporting period 31 December 2019 4
Sponsors
Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited
Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)
Absa Group Limited Summary consolidated financial results for the reporting period 31 December 2019 5
Date: 11-03-2020 07:46:00
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