JOHANNESBURG (Reuters) -South African lender Absa Group reported a 10% jump in its annual profit on Tuesday, with a significant improvement in performance during the second half, driven by a reduction in retail credit impairments in its home market.
The lender, with a presence across 16 countries including Ghana, Kenya, Zambia, the UK and the United States, posted headline earnings per share of 26.62 rand for the year ended on December 31.
Revenue climbed 5% to 109.9 billion rand ($6 billion), as net interest income – the difference between the amount banks earn from loans and pay on deposits – rose 4% to 71 billion rand, supported by loan growth of 7% and deposit growth of 12%.
Non-interest income increased by 6%.
Credit impairment charges fell 8% to 14.3 billion rand, as customers in its retail business in South Africa benefited from rate cuts and collection initiatives.
Absa also declared a final dividend of 775 cents per share.
($1 = 18.3176 rand)
(Reporting by Nqobile Dludla; Editing by Tom Hogue and Sherry Jacob-Phillips)
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