To view the PDF file, sign up for a MySharenet subscription.

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

Release Date: 16/08/2021 07:06
Wrap Text
Unaudited condensed consolidated interim financial results for the reporting period ended 30 June 2021.

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”)

Unaudited condensed consolidated interim financial results for the reporting period ended 30 June 2021 and preference
share dividend declaration.

We are an African bank, inspired by the people we serve and determined to be a bank 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 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 the 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 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. 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 12%       30 June 2020        30 June 2021     Increased 13%      30 June 2020
 R28 797m            IFRS                R25 702m            R28 774m         Normalised         R25 423m

                                       Headline earnings per ordinary share
 30 June 2021        Increased >100%     30 June 2020        30 June 2021    Increased >100%    30 June 2020
 1 163.7 cents       IFRS                (359.6) cents       1 243.8 cents   Normalised         (256.5) cents

                                             Basic earnings per share
 30 June 2021        Increased >100%     30 June 2020        30 June 2021     Increased >100%    30 June 2020
 1 158.1 cents       IFRS                (373.9) cents       1 238.9 cents    Normalised         (258.1) cents

                                        Net asset value per ordinary share
 30 June 2021        Increased 6%        30 June 2020       30 June 2021     Increased 16%      30 June 2020
 19 100 cents        IFRS                17 952 cents       18 133 cents     Normalised         15 648 cents

                                                    Return on equity
 30 June 2021        Increased           30 June 2020       30 June 2021     Increased          30 June 2020
 12.5%               IFRS                (4.0)%             14.2%            Normalised         (3.1)%

                                                  Cost-to-income ratio
 30 June 2021        Decreased           30 June 2020       30 June 2021     Decreased          30 June 2020
 58.4%               IFRS                59.9%              56.5%            Normalised         57.5%

                                                  Net interest margin
 30 June 2021        Increased           30 June 2021       2021             Increased          30 June 2020
 3.62%               IFRS                3.24%              3.62%            Normalised         3.23%

                                          Dividend per preference share
 30 June 2021                            Decreased 10%                       30 June 2020
 2 470.13699 cents                       IFRS                                2 741.0274 cents

Loans and deposits growth
Gross loans and advances to customers
R869bn (30 June 2020: R828bn)

Deposits due to customers
R852bn (30 June 2020: R745bn)
Risk profile
Stage 3 loans ratio to gross loans and advances
5.45% (30 June 2020: 5.47%)

Liquidity coverage ratio
131.1% (30 June 2020: 132.8%)

Sound capital
Common Equity Tier 1 ratio
11.8% (30 June 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 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
Independent non-executive directors
W E Lucas-Bull (Independent Chairman), S M Pityana (Lead Independent Director), T Abdool-Samad,
M S Merson(1), F Okomo-Okello(2)

Executive directors
J P Quinn (Interim Group Chief Executive), P E Modise (Interim Group Financial Director)

(1) British
(2) Kenyan
Declaration of final preference share dividend number 31
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%.

Notice is hereby given that preference dividend number 31, equal to 70% of the average prime rate for 1 March 2021 to 31
August 2021, on the assumption that there will be no further changes in the prime rate between declaration date and 31
August 2021. The dividend is payable on Monday, 20 September 2021, to shareholders of the Absa Bank preference shares
recorded in the Register of Members of the Company at the close of business on Friday, 17 September 2021.

The directors 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 March 2021 to 31 August 2021 will be
2 470.13699 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 2 470.13699 cents per preference share for shareholders exempt from the dividend
- The net local dividend for shareholders subject to withholding tax at a rate of 20% amounts to 1 976.10959 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, 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 shareholders.

On behalf of the Board

N R Drutman
Company Secretary

16 August 2021

Absa Bank Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West, 15 Troye
Street, Johannesburg, 2001.
Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited

Joint sponsor
Absa Bank Limited (Corporate and Investment Bank)

Date: 16-08-2021 07:06:00
Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited ('JSE'). 
The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of
 the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, 
indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on,
 information disseminated through SENS.

Share This Story