Absa Group Archives – Page 2 of 2

Absa Group Reports Increased Earnings on Broad-based Recovery; Resumes Dividend Payments

by CEO ReporterCompany News News & AnalysisAugust 16, 2021August 16, 2021

Absa Group Ltd., one of Africa’s largest financial services providers, reported an increase in interim earnings and resumed dividend payments as the economic effects of the pandemic eased in the first half of 2021 compared with the same period a year earlier.Group headline earnings grew five-fold to R8.6 billion (UGX2 trillion), which is higher than pre-pandemic levels, supported by resilient pre-provision profit growth and a significant decline in impairments. While earnings increased strongly, the improvement is off a low base a year earlier. Absa generates most of its income from its operations in South Africa.“These results are testimony to the decisions that we took during the crisis around supporting our customers and taking a cautious approach to preserving capital and liquidity,” said Jason Quinn, Absa Interim Group Chief Executive.The Group further strengthened its capital reserves during the period and maintained a strong liquidity position in the first half.“Pleasingly, our headline earnings exceeded pre-COVID levels and our common equity tier 1 capital ratio strengthened further to the top end of our target range,” said Punki Modise, Absa Group Interim Financial Director. “The Group’s balance sheet remains resilient and returns are now above cost of equity.”ABSA – Interim Financial Director Punki ModiseThe recovery was broad-based as all business units reported strong growth from a low base in the prior year.Retail and Business Banking (RBB), which generates most of the Group’s income, grew headline earnings eight-fold to R4.2 billion (UGX1 trillion). The benefit of a lower impairment charge was partially eroded by a 15% decline in pre-provision profit, given high claims and reserving in the life insurance business and customer-centric fee reductions. RBB has invested heavily in digital and has made considerable progress in this area, including launching Apple Pay recently.Corporate and Investment Banking (CIB)’s headline earnings more than doubled to R4 billion,…

Uganda’s longer term economic outlook brightens driven by oil and gas industry developments

by CEO ReporterThe Big StoryJuly 22, 2021July 25, 2021

Recent progress in the Uganda’s long-delayed oil development has brightened Uganda’s longer-term economic prospects following the agreements signed by Uganda and Tanzania on the construction of the US$4bn cross-border oil pipeline between the Lake Albert region in Uganda and the port of Tanga in Tanzania, a research report released by Absa Group on the performance of economies in Sub-Saharan Africa has revealed.“Recent developments in oil and gas industry will transform the economy in the coming years, boosting investment into related sectors and pushing economic growth higher. Total aims to commence oil exports by 2025, with a total of 230,000 barrels per day expected to pass through the East African Crude Oil Pipeline.” .The report further states that Uganda’s economy contracted 1.1% in 2020 because of the COVID-19 pandemic and related containment measures. Nonetheless, the economy expanded 1.6% year-over-year in the Fourth quarter of 2020, one of the few countries in the region to experience growth in the quarter (on a year-over-year basis) and expanded an impressive 6.2% in First quarter of 2021. Strong growth in Q1 was driven by the industry sector (+11.6% year-over-year), where construction was an important contributor to the sector’s recovery. The services sector also expanded a robust 6.6%, helped by strong growth in the information & telecommunications and public administration sectors.Despite the reintroduction of virus containment measures as Uganda is faced with the second wave of the pandemic, economic recovery is forecasted to be driven by developments in the oil and gas sector, ongoing monetary and fiscal policy support, favourable agriculture conditions, improving global backdrop and ongoing infrastructure investment. “COVID-19 infections remained under control in the first quarter of the year, allowing for an improvement in economic activity as life slowly returned to normal with only limited containment measures still in place at the time. However, the…

Absa Group Earnings Decline; 7% Pre-provision Profit Growth Indicates Positive Underlying Performance

by CEO ReporterCompany NewsMarch 17, 2021March 17, 2021

Absa Group Ltd., one of Africa’s largest financial services providers, has reported a 51% decline in normalised headline earnings to R8 billion after impairments nearly trebled to R20.6 billion amid the economic downturn that was precipitated by the COVID-19 pandemic.Earnings and returns improved materially in the second half of the year as lockdown restrictions eased, particularly in South Africa, which accounts for more than 80% of the group’s earnings. Group headline earnings fell 82% in the first half of 2020 compared with the first half of 2019. Headline earnings in the second half of last year were 19% lower than in the second half of 2019.As COVID-19 lockdown restrictions were implemented across countries last year, Absa moved swiftly to adopt remote-working, implement payment relief measures for clients, and to launch initiatives to support the communities we serve, while ensuring operational and financial resilience.“Absa responded decisively to the COVID-19 pandemic and the resulting economic downturn. We supported our staff, customers and communities through a difficult period and produced a resilient financial performance in a very challenging operating environment,” said Daniel Mminele, Absa Group Chief Executive. “We also successfully completed our separation from Barclays and reviewed our strategy to ensure that it continues to be relevant in the context of rapid changes in the operating environment.”COVID-19 pandemic responseColleague safety and well being was the immediate priority, following which substantial customer and community support initiatives were implemented.“We believe we offered the most comprehensive relief programme in the South African banking sector, providing approximately R9.8 billion in cash-flow relief to 613 000 retail and business banking customers,” said Mminele. In addition, Absa waived various transaction fees and provided insurance premium relief, while temporarily extending credit cover to include a wider definition of ‘loss of income’ events.Absa subsidiaries in countries outside of South Africa extended…

Absa Group Completes Renaming of 12 African Subsidiaries; nears complete separation from Barclays

by Muhereza KyamuteteraCompany News Finance The Big StoryFebruary 12, 2020February 13, 2020

Absa Group Limited’s Barclays-branded subsidiaries in seven African countries – Botswana, Ghana, Kenya, Mauritius, Seychelles, Tanzania and Zambia – were renamed as ‘Absa’ today, February 12th 2019, completing the name change across the continent. Absa Group’s subsidiaries in Uganda and Mozambique were renamed in November. The renaming of the remaining subsidiaries today marks another substantial milestone in Absa’s separation from Barclays PLC, a three-year process scheduled for completion by mid-2020. “More than a name change, this is a milestone that brings us closer to realising our ambition as a leading African bank to support growth and development on the continent and beyond,” said Absa Group Chief Executive Daniel Mminele. “We are now united under a single brand in 12 countries in Africa.” Absa also has representative offices in London and New York. The group-wide rebranding programme, one of the largest corporate rebranding projects in Africa currently, started with the launch of a refreshed visual identity in South Africa in July 2018 to reflect the group’s new identity as a standalone African bank. The name and brand change programme has seen the Absa logo replacing Barclays branding on thousands of asset types, including branches, offices, ATMs, uniforms, cards, stationary, forms, apps, websites and more. “Today, we as the Absa Group, re-affirm our commitment to contributing to growth and economic development in Africa. We have a long-established and respected legacy in all our African markets, which will serve us well for the future,” said Peter Matlare, Absa Group Deputy CEO and Chief Executive of Absa Regional Operations. “By adopting the Absa name, we are leveraging our rich African heritage in order to drive relevant initiatives that will further unlock our continent’s potential, deepen regional integration and support accelerated growth,” he said. The renaming of the subsidiaries is being celebrated with an array…

Barclays officially becomes Absa Bank Uganda; BoU recognises name change with license

by theceomaCompany NewsNovember 11, 2019November 11, 2019

Absa Bank Uganda, a subsidiary of Absa Group Limited has today received the license to operateand trade under its new name from Bank of Uganda. Formerly known as Barclays Bank Uganda, the name change marks the start of a new era for the bank’s operations, one that sees the realisation of an ambition to become an independent African bank.The license was officially handed over to the bank’s Managing Director, Nazim Mahmood by Prof. Emmanuel Mutebile, Governor, Bank of Uganda at the Central Bank head office.“Today we begin a new chapter as Absa Bank Uganda Limited, adopting our parent company’s name and brand while retaining our indelible commitment to Uganda and its people. Our new brand is a commitment to Uganda and to the wider continent: Absa is a truly African bank, with global scalability and reach,” said Nazim Mahmood, Managing Director of Absa Bank Uganda Limited. (L-R) Dr. Louis Kasekende, Deputy Governor of Bank of Uganda and Nazim Mahmood, Managing Director of Absa Bank Uganda following the handover of the license, marking the official name change from Barclays to Absa Bank Uganda Limited.The company, which has been operating in Uganda for close 92 years, reiterated its commitment to the country’s growth and economic development under the Absa brand.“We have invested in crucial sectors of development of the national economy, including trade, agriculture, SMEs, infrastructure and investments. We will continue to play a critical role by investing in these sectors without neglecting the ordinary citizen who seeks quality financial services and safe investments for their hard-earned money,” said Mahmood.The Governor commended Absa Bank Uganda for contributing to the growth of the banking sector in the past and urged them to continue to deliver quality and affordable financial services. Nazim Mahmood, Managing Director of Absa Bank Uganda (left) and Swithin Munywantwali, Board…

Subtotal	UShs0
Shipping	UShs0
Tax	UShs0
Total	UShs0