South Africa lender absa Records Marginal Rise in Annual Profit

Absa Group, one of South Africa’s top private lenders, reported a marginal increase in annual profit despite facing higher credit impairments, according to its latest financial statement released on Monday.

The bank, known for its well-capitalized balance sheets and conservative lending practices, experienced challenges due to inflationary pressures, high interest rates, power blackouts, and logistical bottlenecks affecting retail and small business customers.

For the year ended Dec. 31, Absa Group posted headline earnings of 20.9 billion rand ($1.11 billion), representing a modest 1% increase compared to the previous year. Revenue also saw an 8% climb to 104.5 billion rand, while pre-provision profit rose by 6% to 50.1 billion rand.

However, the bank faced a 13% increase in credit impairments, reaching 15.5 billion rand, with significant impairments observed in secured lending businesses, particularly in South Africa, Absa’s largest market by revenue.