South African lender Absa Group saw a 10% increase in its annual profit for the year ending December 31, driven by a substantial reduction in credit impairments in its retail business in South Africa. The bank posted headline earnings per share of 26.62 rand, reflecting a solid performance, particularly in the second half of the year.
The group’s revenue grew by 5% to 109.9 billion rand ($6 billion), bolstered by a 4% rise in net interest income, which reached 71 billion rand. This growth was fueled by a 7% increase in loan volumes and a 12% jump in deposits. Additionally, non-interest income rose by 6%, further contributing to the bank’s overall performance.
A key highlight for Absa was the 8% drop in credit impairment charges, which fell to 14.3 billion rand. This decline was largely attributed to rate cuts and improved collection strategies, which benefited retail customers in South Africa. With a presence in 16 countries, including Ghana, Kenya, Zambia, the UK, and the U.S., Absa’s diverse market reach continues to support its growth.
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