Daniel Mminele
ABSA GROUP Ltd., Absa Bank Ghana parent company, today, reported improving revenue growth for the 2019 financial year, with headline earnings growing slightly.
“We delivered a resilient performance against a challenging macroeconomic backdrop. We maintained balance sheet momentum, and growth was broad-based across most businesses,” said Daniel Mminele, Absa Group Chief Executive Officer.
Absa Group revenue increased six per cent while headline earnings, the measure most analysts used to gauge profit, went up a per cent as impairments increased.
“Our revenue growth is showing an improving trend, with strong deposit growth of 12% and customer loan growth of nine per cent for the group,” said Absa Group Financial Director, Jason Quinn.
Overall, Absa’s balance sheet, revenue and earnings growth were in line with peers after lagging for a number of years.
The Absa Regional Operations (ARO) business, comprising Absa Group’s African operations excluding South Africa, delivered strong financial performance in 2019 with earnings growth of 16% (12% in constant currency), enhancing the overall Group’s position.
“We are pleased with the results of our ARO and their contribution to Absa Group’s overall performance, having maintained double-digit growth and growing our headline earnings. We look forward to continuing to grow our revenue market share on the continent over the coming years,” said Peter Matlare, Chief Executive Absa Regional Operations.
He adds, “As Absa Group, we are optimistic about the future and the opportunities that lie ahead united under ‘one Absa’ across our African markets. Our objective is to develop strong, digital first financial systems in a sustainable manner and to contribute positively to the development of our communities in which we operate.”
On ARO, revenue grew by 14% (11% in constant currency); pre-provision profits increased by 17% (14% in constant currency); cost-to-income ratio improved to 57.8%; while separating, ARO had grown its retail primary customer base in 2019 to 1.5 million customers
Concerning its outlook, the bank said South Africa’s macro environment had consistently disappointed for the past five years. Together with our ARO, the outlook remained muted, compounded by the recent outbreak of coronavirus which would have an impact on the global macro outlook and which would also have implications for the economic prospects in our other operating regions.
“We will continue to drive the execution of our strategic objectives with agility and take advantage of emerging opportunities, while managing risks more effectively in response to changes in the operating environment,” said Mminele.