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ABSA GROUP LIMITED - Unaudited condensed consolidated interim results for the reporting period ended 30 June 2021

Release Date: 16/08/2021 07:05
Wrap Text
Unaudited condensed consolidated interim results for the reporting period ended 30 June 2021

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
(“Absa Group”, “Group” or “Company”)

Unaudited condensed consolidated interim results for the reporting period ended 30 June 2021 and ordinary share 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.

2021 Achievements
We started 2021 better than we expected, and we are gaining momentum, especially in our new business production. Our
success lies in collaboration and digital innovation.
    - Absa Group raised $500m (R7bn) in a landmark offshore Additional Tier 1 (‘AT1’) hybrid capital bond issuance.
    - Secured South Africa’s first certified green loan ($150m) to strengthen our position as a renewable finance leader in
        South Africa, support economic recovery and provide support to the country’s power sector.
    - Introduced a highly advanced and secure facial recognition capability that enables convenient, safe and secure
        transacting on the Absa Banking App.
    - At the recent International Digital Customer Experience Awards 2021, the Absa Virtual Assistant clinched the award
        for Outstanding Chatbot Customer Experience.
    - One of the first banks to launch Apple Pay. Absa customers can now use their Apple devices to tap and pay at till
        points or purchase online using Apple Pay wallet.
    - Global Finance Best M&A Bank in Africa 2021.
    - CIB was awarded Best Banking for Financing in Africa in the Euromoney Awards for Excellence in 2021.

Normalised financial results as a consequence of Barclays PLC Separation

A normalised view of the 2021 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 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. Normalised results will be
presented for future periods to the extent that the financial impact of the Separation is considered material. The condensed
consolidated interim financial results have not been audited or independently reviewed by the Group’s external auditors.
Performance overview for the period ended 30 June 2021

                                                      Total income
 30 June 2021      Increased 2%          30 June 2020     30 June 2021    Increased 3%      30 June 2020
 R41 230m          IFRS                  R40 355m         R41 210m        Normalised        R40 078m

                                     Headline earnings per ordinary share
 30 June 2021      Increased >100%       30 June 2020     30 June 2021    Increased >100%   30 June 2020
 986.2 cents       IFRS                  67.7 cents       1 019.7 cents   Normalised        173.6 cents

                                              Basic earnings per share
 30 June 2021      Increased >100%       30 June 2020     30 June 2021    Increased >100%   30 June 2020
 983.3 cents       IFRS                  58.8 cents       1 017.3 cents   Normalised        171.7 cents

                                      Net asset value per ordinary share
 30 June 2021      Increased 2%          30 June 2020     2021            Increased 6 %     30 June 2020
 14 350 cents      IFRS                  14 045 cents     13 859 cents    Normalised        13 080 cents

                                                 Return on equity
 30 June 2021      Increased             30 June 2020     2021            Increased         30 June 2020
 13.9%             IFRS                  1.0%             15.3%           Normalised        2.6%

                                               Cost-to-income ratio
 30 June 2021      Decreased             30 June 2020     2021            Increased         30 June 2020
 56.4%             IFRS                  57.1%            54.9%           Normalised        53.9%

                                                Net interest margin
 30 June 2021      Increased             30 June 2020     2021            Increased         30 June 2020
 4.41%             IFRS                  4.23%            4.41%           Normalised        4.23%

                                         Dividend per ordinary share
 30 June 2021                          Increased 100%                     30 June 2020
 310 cents                             IFRS                               0 cents

Loans and deposits growth
Gross loans and advances to customers
R 999 bn (30 June 2020: R 975bn)

Deposits due to customers
R1 010bn (30 June 2020: R 920bn)

Risk profile
Stage 3 loans ratio to gross loans and advances:
5.64% (30 June 2020: 5.65%)
Liquidity coverage ratio
124.0% (30 June 2020: 126.6%)

Common Equity Tier 1 ratio
12.4% (30 June 2020: 11.0 %)

Declaration of dividends

Shareholders are advised that an interim ordinary dividend of 310 cents per ordinary share was declared on 16 August
2021, for the period ended 30 June 2021. The interim ordinary dividend is payable to shareholders recorded in the register
of members of the Company at the close of business on 17 September 2021. The directors of Absa Group 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 paragraph 11.17 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 310 cents per ordinary share for shareholders exempt from the dividend tax.
    -   The net local dividend amount is 248 cents per ordinary share for shareholders liable to pay the dividend tax.
    -   Absa Group currently has 847 750 679 ordinary shares in issue (includes 17 771 580 treasury shares).
    -   Absa Group’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 September 2021
Shares commence trading ex-dividend               Wednesday, 15 September 2021
Record date                                       Friday, 17 September 2021
Payment date                                      Monday, 20 September 2021

Share certificates may not be dematerialised or rematerialised between Wednesday, 15 September 2021 and Friday, 17
September 2021, both dates inclusive. On Monday, 20 September 2021, 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 20 September 2021.

On behalf of the board

N R Drutman
Company Secretary

16 August 2021

Absa Group Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West, 15 Troye
Street, Johannesburg, 2001.
Short form statement
This short-form announcement is the responsibility of the directors of Absa Group. 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:
The full interim 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

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

Board of directors
Group independent non-executive directors
W E Lucas-Bull (Independent Chairman), S M Pityana (Lead Independent Director), T Abdool-Samad, A B Darko(1)(4), R A
Keanly, M S Merson(4), S J Munyantwali (3)(4), D Naidoo, F Okomo-Okello(2), I Rensburg, N S Mjoli-Ncube, R van Wyk

Group non-executive directors
F Tonelli

Group executive directors
J P Quinn (Interim Group Chief Executive), P E Modise (Interim Group Financial Director)
(1) Ghanaian
(2) Kenyan
(3) Ugandan
(4) British

Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited

Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)

Date: 16-08-2021 07:05:00
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