Revenues For Absa Group Ups 6% Amid Sluggish Growth In South Africa

Absa Group Ltd, the parent company of Absa Bank Kenya PLC, has 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 6 percent while headline earnings, the measure most analysts use to gauge profit, rose 1 percent as impairments increased.

“Our revenue growth is showing an improving trend, with strong deposit growth of 12 percent and customer loan growth of 9 percent 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 a 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 Absa Regional Operations 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.”

“The publication of our parent company, Absa Group’s results publishing comes just barely after the completion of our brand transition and we are excited about the journey ahead as Absa Bank Kenya. Collectively our values and journey are one of striving to be customer-obsessed, acknowledging the strength of our people and delivering results sustainably,” Absa Kenya Managing Director Jeremy Awori said.

Absa launched its growth strategy in March 2018 after Barclays PLC ceased to be the controlling shareholder in the Pan African banking group. Absa is on track to complete its separation program, one of the largest in the banking sector in terms of size and complexity, on time and within budget by the middle of 2020.

READ: Barclays Bank Kenya Paints Nairobi Red To Become ABSA Kenya