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ABSA BANK LIMITED - Summary consolidated results for the reporting period ended 31 December 2023

Release Date: 11/03/2024 07:35
Wrap Text
Summary consolidated results for the reporting period ended 31 December 2023

Absa Bank Limited
Registration number: 1986/004794/06
Incorporated in the Republic of South Africa 
JSE share code: ABSP 
Bond Issuer Code: BIABS 
ETN Issuer Code: ABSN1
Hybrid Issuer Code: ABSH
("Absa Bank" or the "Company" or "Group")

Summary consolidated results
for the reporting period ended 31 December 2023 and preference share dividend declaration

Empowering Africa's tomorrow, together story at a time

We are an African financial services provider, united in a clear purpose. We live our purpose 
through our operations in our presence countries. We believe in Africa's potential and are 
invested in creating, nurturing and protecting wealth and growth on our continent. We play an 
integral role in the economic lives of individuals, businesses and nations, while leading the 
way to a sustainable future.

We are listed on the Johannesburg Stock Exchange and have representative offices in Namibia, 
Nigeria, and the United States, along with technology support in the Czech Republic.

- 5 countries
- 618 outlets*
- 5 250 ATMs
- 27 085 employees
- 3 million digitally active customers
- 9.8 million active customers
  * Outlets include branches and sales centres.

Normalised financial results as a consequence of Barclays PLC Separation

A normalised view of the 2023 annual results is provided which adjusts for the consequences of 
the separation from Barclays PLC. This view better reflects the Group's underlying performance. 
IFRS Accounting Standards (referred to as IFRS throughout this document) compliant financial 
results are presented as required by the Companies Act and the JSE Listings Requirements.

The normalised results are considered to be pro forma financial information in terms of the 
JSE Listings Requirements. The normalised results have been prepared for illustrative purposes 
only and, because of their nature, may not fairly present Absa Bank's financial position and 
results of operations.

Performance overview for the period ended 31 December

                                           Total income
2023             Increased 2.3%       2022             2023             Increased 2.2%    2022
R65 535m         IFRS                 R64 074m         R65 408m         Normalised        R64 016m
Normalised total income has been adjusted by R127m (2022: R58m), mainly consisting of a net interest 
income of R127m (2022: R58m) 

                                Headline earnings per ordinary share
2023             Decreased 36.4%    2022              2023             Decreased 34.0%   2022
1 652.0 cents    IFRS               2 598.7 cents     1 805.7 cents    Normalised        2 737.9 cents

                                Basic earnings per ordinary share
2023             Decreased 37.3%    2022              2023             Decreased 34.1%   2022
1 583.1 cents    IFRS               2 523.8 cents     1 754.6 cents    Normalised        2 662.9 cents

                                Net asset value per ordinary share
2023             Increased 1.6%     2022              2023             Increased 2.7%    2022
20 611.8 cents   IFRS               20 279.2 cents    20 085.9 cents   Normalised        19 552.1 cents

                                        Return on equity
2023                                2022               2023                              2022
8.2%             IFRS               13.0%              9.2%            Normalised        14.2%

Performance overview for the period ended 31 December

                                      Cost-to-income ratio
2023                                2022               2023                              2022
61.7%            IFRS               57.9%              60.3%           Normalised        56.6%

                                      Net interest margin
2023                                2022               2023                              2022
3.57%            IFRS               3.67%              3.56%           Normalised        3.67%

                                Dividend per preference share
2023                                Increased 16.9%                                      2022
4 101.23286 cents                   IFRS                                                 3 509.58904 cents

Loans and deposits growth
- Gross loans and advances (Increased 4.7%) R1 116.6bn (2022: R1 066.0bn)
- Deposits (Increased 7.3%) R1 089.5bn (2022: R1 015.6bn)

Risk profile
- Stage 3 loans ratio to gross loans and advances 5.83% (2022: 4.92%)

Liquidity coverage ratio
- 127.5% (2022: 129.0%)

Sound capital
- Common Equity Tier 1 ratio 11.9% (2022: 12.5%)

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 annual consolidated financial statements. 
Any investment decisions by shareholders should be based on consideration of the annual consolidated 
financial statements published on 
and on the following JSE cloud links: 

While this announcement is not audited, the annual consolidated financial statements from which 
the results are derived, were audited by PwC and KPMG, who expressed an unmodified opinion thereon. 
The full audit opinion is available at the following link as part of the Group's annual 
consolidated financial statements.

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
Independent non-executive directors
S Moloko (Chairman), T Abdool-Samad, R Keanly, N Mjoli-Mncube (Lead Independent Director), R van Wyk

Executive directors
A Rautenbach (Chief Executive Officer)
C Snyman (Interim Financial Director)

Declaration of a final preference share dividend number 36

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 11.75%.

Notice is hereby given that preference dividend number 36, equal to 70% of the average prime rate 
for 1 September 2023 to 29 February 2024, has been declared on 11 March 2024.

The dividend is payable on Monday, 22 April 2024, to shareholders of the Absa Bank preference shares 
recorded in the register of members of the Company at the close of business on Friday, 19 April 2024.

The directors of Absa Bank Limited confirm that the Company will satisfy the solvency and liquidity 
test immediately after completion of the dividend distribution and for the next 12 months.

Based on the average prime rate, the preference dividend payable for the period 1 September 2023 
to 29 February 2024 would indicatively be 4 101.23286 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 4 101.23286 cents per preference share for shareholders exempt 
  from the dividend tax.
- The net local dividend for shareholders subject to withholding tax at a rate of 20% amounts to 
  3 280.98629 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 the JSE Limited, the following salient dates for the payment of the dividend are applicable:

Last day to trade cum dividend                  Tuesday, 16 April 2024
Shares commence trading ex-dividend           Wednesday, 17 April 2024
Record date                                      Friday, 19 April 2024
Payment date                                     Monday, 22 April 2024

Share certificates may not be dematerialised or rematerialised between Wednesday, 17 April 2024 and 
Friday, 19 April 2024, both dates inclusive. On Monday, 22 April 2024, the dividend will be 
electronically transferred to the bank accounts of 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, 22 April 2024.

On behalf of the Board

N R Drutman
Company Secretary

11 March 2024

Absa Bank 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 (Corporate and Investment Bank)

Date: 11-03-2024 07:35:00
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