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
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.
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
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)%
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)
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%)
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
https://www.absa.africa/absaafrica/investor-relations/financial-results/ 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
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)
J P Quinn (Interim Group Chief Executive), P E Modise (Interim Group Financial Director)
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
- 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
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
Absa Bank Limited (Corporate and Investment Bank)
Date: 16-08-2021 07:06:00
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