<\/p>\n
Jason Quinn<\/strong><\/p>\n ABSA GROUP\u2019S headline earnings more than doubled to R18.6 billion in 2021 (R8 billion in 2020), well in excess of 2019 earnings, as pre-provision profit increased and as the impairments charge reduced substantially.<\/p>\n The improvement, in part, reflects a stronger than expected economic recovery in South Africa, where Absa generates most of its income.<\/p>\n \u201cThis is a strong set of results which reflect the benefit of, not only the improved operating environment in 2021, but also the deliberate actions that we have taken to ensure that Absa remains resilient and poised to resume our growth plans in a favourable environment,\u201d said Jason Quinn, Absa Interim Group Chief Executive. \u201cOur purpose-led approach to supporting our clients and communities defined our success in a tough environment while also creating value for shareholders,\u201d he said.<\/p>\n Revenue growth remained resilient at 6%, or 8% in constant currency, supported by strong growth in net interest income (up 9%). Non-interest income was in line with 2020 levels, as the negative impact of Covid-19-related claims in the insurance business eroded the benefit of strong income increases in areas including Global Markets.<\/p>\n Solid revenue growth and cost management helped to deliver positive pre-provision profit growth over the past two years.<\/p>\n Customer deposits grew 12%, supported by strong performance in the retail and business banking and corporate deposit portfolios and the closure of the Absa Money Market Fund, with a significant portion of those customers electing to migrate to Absa deposit products. Growth in gross customer advances at 7% was supported by strong growth in secured assets in South Africa, where home loans increased 9% and vehicle asset finance rose 10% as Absa continued to gain market share in these areas.<\/p>\n Based on these assumptions, and excluding further major unforeseen political, macroeconomic or regulatory developments, Absa expects high single-digit revenue growth in 2022 and return on equity at similar levels to 2021.<\/p>\n \u201cWhile the outlook for the global economy in 2022 is particularly uncertain, we feel positive about the strong base that we have built in the past few years and how this has positioned us to deliver on our strategic objectives,\u201d said Quinn adding \u201cWe will pursue growth opportunities appropriate to the environment and shore up buffers as needed to ensure that the bank remains resilient.\u201d<\/p>\n A business desk report<\/strong><\/p>\n \u00a0<\/p>\n \n\t<\/div>\n","protected":false},"excerpt":{"rendered":" Jason Quinn ABSA GROUP\u2019S headline earnings more than doubled to R18.6 billion in 2021 (R8 billion in 2020), well in excess of 2019 earnings, as pre-provision profit increased and as the impairments charge reduced substantially. The improvement, in part, reflects a stronger than expected economic recovery in South Africa, where Absa generates most of its […]<\/p>\n","protected":false},"author":1,"featured_media":1023181,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[72],"tags":[6113,4558,516,445],"class_list":["post-1023180","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business","tag-absa","tag-earnings","tag-group","tag-increase"],"_links":{"self":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1023180","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/comments?post=1023180"}],"version-history":[{"count":0,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/posts\/1023180\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/media?parent=1023180"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/categories?post=1023180"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.ghanamma.com\/2022\/wp-json\/wp\/v2\/tags?post=1023180"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}