Monday 06, August 2018 by Bloomberg

Absa records a slight profit improvement as costs ease

 

The lender reported first-half adjusted earnings per share that rose three per cent to ZAR 9.50.

  

Absa Group forecast that its return on equity, will improve slightly this year, helped by the South African lender’s operations in the rest of the continent.

In a statement, the Johannesburg-based bank said that while costs will improve by the end of the year, expenses are still likely to grow faster than income.

Additionally, loan and deposit growth will improve, with its rest-of-Africa business outperforming its home market, while the company’s net interest margin is likely to decline slightly this year.

Last month, Absa Group rebranded from Barclays Africa Group after its former parent reduced its controlling stake and the lender is now focusing on winning back market share in South Africa and doubling its share of revenue from its 12 other operations on the continent.

  

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