Awards for Excellence 2019
Across the continent, the banking sector feared the consequences of the withdrawal of Barclays.
But Absa, the bank it left behind, is seemingly enjoying its independence.
Absa has become a truly African bank. It is now trading on the Johannesburg Stock Exchange under its new name and ticker – ABG, not BGA, as it once was.
But it is not the bank’s rebranding exercise that makes it Africa’s best bank for transformation this year but the strength of its financials, despite the disruption surrounding Barclays’ withdrawal.
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René van Wyk |
The group’s headline earnings grew 3% to R16.1 billion ($8.1 billion) from R15.6 billion in 2017 and return on equity was 16.8%, up slightly from 16.5% the year before.
The bank even managed to grow its loan book and deposits. Gross loans and advances to customers grew 13% to R872 billion in 2018 and deposits rose 7% to R736 billion.
In a bid to recover some of the global links that Absa may have lost, the bank signed a memorandum of understanding with Société Générale in January.