{"id":598162,"date":"2019-03-11T21:19:44","date_gmt":"2019-03-11T21:19:44","guid":{"rendered":"
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Absa Group Limited\u00a0reported an increase in revenue and earnings for 2018, a year of almost unprecedented corporate activity as the group repositioned itself for delivery against a new growth strategy as an independent African bank. <\/span><\/span><\/p>\n

Normalised headline earnings increased 3% to R16.1 billion compared with 2017 and revenue increased 4% to R75.7 billion. <\/span><\/span><\/p>\n

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Shareholders will receive a final dividend of R11.10 per share, a 4% increase from the final 2017 dividend. Normalised earnings are considered the best measure of underlying group performance as it strips out the distorting effect of items related to the separation from Barclays Plc.\u00a0\u00a0 <\/span><\/span><\/p>\n

Absa Group Financial Director, Jason Quinn said, \u201cDespite a challenging backdrop, we are particularly pleased with our improved momentum as we embark on our new growth strategy. This was evident in our gross loans to customers which increased by 13%.\u201d <\/span><\/span><\/p>\n

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In its largest business, retail in South Africa, lending momentum outpaced the market showing good new business growth across home loans, vehicle and asset finance and personal loans. <\/span><\/span><\/p>\n

Absa also gained market share in deposits which grew by 11% with strong growth in fixed and notice deposits. <\/span><\/span><\/p>\n

\u00a0Business Review\u00a0 <\/b><\/span><\/span><\/p>\n

Absa Group CEO Ren\u00e9 van Wyk, said \u201cLast year was a year of almost unprecedented activity for Absa Group as the business was re-set as an independent bank after Barclays Plc reduced its shareholding to a minority stake in 2017.\u201d\u00a0 <\/span><\/span><\/p>\n

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Absa Group announced a new strategy in March<\/b> as it repositioned itself as an independent African banking group focused on growth.\u00a0 <\/span><\/span><\/p>\n

In April, <\/b>a new operating model was implemented to structure the business for delivery against the new strategy.\u00a0 <\/span><\/span><\/p>\n

In June<\/b>, Absa Group achieved regulatory deconsolidation from Barclays PLC, which meant that regulators no longer regarded the two businesses as a consolidated entity.\u00a0 <\/span><\/span><\/p>\n

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In July<\/b>, the group started trading as Absa Group and launched refreshed brand in South Africa.\u00a0 <\/span><\/span><\/p>\n

Absa opened an office in London in September<\/b>, strengthening its ability to serve European and global corporates.\u00a0 <\/span><\/span><\/p>\n

In 2018, the group also stepped up its digital customer offerings:\u00a0 <\/span><\/span><\/p>\n

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\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 ChatBanking on WhatsApp was launched, enabling customers to conduct basic banking on one of the world\u2019s most-used chat platforms, a world first\u00a0 <\/span><\/p>\n

\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 A mobile app called Timiza was launched in Kenya, allowing customers to save and borrow money without having to visit a branch <\/span><\/p>\n

\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Absa was first in South Africa to launch Samsung Pay <\/span><\/p>\n

\u201cWith major changes bedded down in 2018, the framework for the business has been re-set,\u201d said Van Wyk. \u201cThe strong leadership team and structure that was put in place over the past year can now deepen the efforts within their business units to deliver against our ambitious growth strategy.\u201d <\/span><\/span><\/p>\n

Commenting on the Group results, Absa Regional Operations Chief Executive, Peter Matlare said; \u201cWe are pleased with the contribution of our African operations to Absa Group\u2019s overall performance and we remain focused on contributing to the Group\u2019s ambition of growing revenue market share on the continent over the coming years.\u201d <\/span><\/span><\/p>\n

He added: \u201cAs Absa Group, we are optimistic about the outlook for the continent and we stand ready to partner with stakeholders across the continent to develop strong, digitally led financial systems while supporting the growth of economies for the long term.\u201d<\/span><\/span><\/p>\n

Barclays Bank Ghana\u2019s Managing Director, Mrs Abena Osei-Poku, said; \u201cAs we join in reflecting on our parent company\u2019s full year results for 2018, we are excited about our own future as we make progress on our journey to the new Absa brand in Ghana. Our transition to a new brand in the near future presents us with a unique and exciting opportunity to leverage our rich African heritage and deep understanding of the local market to drive relevant initiatives that can unlock Ghana\u2019s potential and support its growth.\u201d<\/span><\/span><\/p>\n

Social Promise\u00a0 <\/span><\/b><\/span><\/p>\n

In recognition of the increasingly important role that corporates play in shaping society, Absa made a significant contribution to the communities in which it operates.\u00a0 <\/span><\/span><\/p>\n

In 2018, Absa Group: <\/span><\/span><\/b><\/p>\n

\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Invested R266 million in education disbursements, of which R181 million was invested in scholarships for 4 142 students across over 100 universities in African countries where we have a presence. <\/span><\/p>\n

\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Trained 2 107 school governing body members from 656 schools in financial management and governance.\u00a0 <\/span><\/p>\n

\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Facilitated consumer financial education for 100 746 South African beneficiaries\u00a0 <\/span><\/p>\n

\u00b7<\/span>\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Supported 9 298 young people in South Africa and 4 233 in Absa regional markets to gain work exposure, internships or placement opportunities through ReadytoWork partnership programmes. <\/span><\/p>\n

About Absa Group<\/b><\/p>\n

Absa Group Limited (\u2018Absa Group\u2019) is listed on the Johannesburg Stock Exchange and is one of Africa\u2019s largest diversified financial services groups.\u00a0 <\/span><\/span><\/span><\/p>\n

Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance. <\/span><\/span><\/span><\/p>\n

Absa Group has a presence in 12 countries in Africa, with approximately 42 000 employees. <\/span><\/span><\/span><\/p>\n<\/div>\n