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Summary consolidated results for period ended 31 December 2022 and preference share dividend declaration
Absa Bank Limited
Registration number: 1986/004794/06
Incorporated in the Republic of South Africa
JSE share code: ABSP
ISIN: ZAE000079810
Bond Issuer Code: BIABS
ETN Issuer Code: ABSN1
Hybrid Issuer Code: ABSH
("Absa Bank" or the "Company" or "Bank")
Summary consolidated results
for the reporting period ended 31 December 2022 and preference share dividend declaration
We are an African bank...
We are inspired by the people we serve and determined to be a globally respected organisation of which Africa
can be proud. As a financial services provider, we play an integral role in the economic life of individuals,
businesses, and nations. To this end, we offer a universal set of products and services across retail, business,
wealth as well as corporate and investment banking.
We are listed on the Johannesburg Stock Exchange (JSE) and have representative offices in Namibia, Nigeria
and the United States, as well as securities entities in the United Kingdom, along with technology support
in the Czech Republic.
We help create, grow and protect wealth through partnerships in economic development, while playing a shaping
role in Africa's growth and sustainability.
...with material scale
- 4 countries
- 621 outlets*
- 5 364 ATMs
- 25 870 employees
- 2.3 million digitally active customers
- 92 026 point-of-sale devices
* Outlets include branches and sales centres.
Empowering Africa's tomorrow, together
...one story at a time
At Absa, we want our Purpose to be at the heart of everything we do - guiding our strategy, brand, culture and
behaviour. Over the past year, we have been on an immersive and inclusive journey to define our purpose statement,
grounded in what the world needs, what we have to offer, and what will make us proud as an organisation.
In 2023, we will embed it in everything we do.
Normalised financial results as a consequence of Barclays PLC Separation
A normalised view of the 2022 annual results is provided which adjusts for the consequences of the separation from
Barclays PLC. This view better reflects the Bank's underlying performance. International Financial Reporting Standards (IFRS)
compliant financial results will continue to be presented as required by the Companies Act and the JSE Limited (JSE)
Listings Requirements and include a reconciliation between the normalised and IFRS views.
Performance overview for the period ended 31 December 2022
Total income
2022 Increased 9.5% 2021 2022 Increased 9.5% 2021
R64 074m IFRS R58 492m R64 016m Normalised R58 468m
Headline earnings per ordinary share
2022 Increased 8.6% 2021 2022 Increased 8.1% 2021
2 598.7 cents IFRS 2 392.6 cents 2 737.9 cents Normalised 2 532.9 cents
Basic earnings per share
2022 Increased 7% 2021 2022 Increased 6.2% 2021
2 523.8 cents IFRS 2 358.5 cents 2 662.9 cents Normalised 2 507 cents
Net asset value per ordinary share
2022 Increased 1% 2021 2022 Increased 1.7% 2021
20 300 cents IFRS 20 100 cents 19 526 cents Normalised 19 191 cents
Return on equity
2022 Increased 9.6% 2021 2022 Decreased 7.2% 2021
13.7% IFRS 12.5% 14.9% Normalised 13.9%
Cost-to-income ratio
2022 Decreased 3.8% 2021 2022 Decreased 3.2% 2021
57.9% IFRS 60.2% 56.6% Normalised 58.5%
Net interest margin
2022 Increased 2.2% 2021 2022 Increased 1.9% 2021
3.68% IFRS 3.60% 3.67% Normalised 3.60%
Dividend per preference share
2022 Increased 40.7% 2021
3 509.58904 cents IFRS 2 494.10959 cents
Loans and deposits growth
- Gross loans and advances (Increased 10.6%) R1 066bn (2021: R964.2bn)
- Deposits (Increased 4.3%) R1 016bn (2021: R974.1bn)
Risk profile
- Stage 3 loans ratio to gross loans and advances 4.92% (2021: 5.14%)
Liquidity coverage ratio
- 129% (2021: 124.5%)
Sound capital
- Common Equity Tier 1 ratio 12.5% (2021: 12.4%)
Short-form statement
This short-form announcement is the responsibility of the directors of Absa Bank Limited. It is only a summary
of the information in the full announcement. Any investment decisions by stakeholders should be based on consideration
of the full announcement published on https://www.absa.africa/absaafrica/investor-relations/financial-results/and
on the following JSE links: https://senspdf.jse.co.za/documents/2023/jse/issh/ABSH/Bank-FYE22.pdf and
https://senspdf.jse.co.za/documents/2023/jse/issb/BIABS/Bank-FYE22.pdf
While this announcement is not audited, the consolidated annual financial statements from which the results are
derived, were audited by PwC and KPMG, who expressed an unmodified opinion thereon. The full audit opinion,
including any key audit matters, is available at the following link
https://www.absa.africa/absaafrica/investor-relations/annual-reports/ as part of the Bank's full annual financial
statements which have been released on 13 March 2023. The annual financial statements and auditors' report thereon
are available for inspection at the Company's registered office. The full year end report is available on the Company's
website, copies of the full announcement may also be requested at the Company's registered office and the offices
of the lead independent sponsor, at no charge, during office hours on normal business days.
Registered office
7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001
Board of directors
Bank independent non-executive directors
S Moloko (Chairman), N Mjoli-Mncube (Lead Independent Director), A Darko(1), (3), F Okomo-Okello(2), R Keanly,
R van Wyk, T Abdool-Samad
Bank executive directors
A Rautenbach (Chief Executive Officer)
J Quinn (Financial Director)
(1) British (2) Kenyan (3) Ghanaian
Declaration of a final preference share dividend number 34
The Absa Bank preference shares have an effective coupon rate of 70% of Absa Bank's prevailing prime overdraft lending
rate (prime rate). Absa Bank's current prime rate is 10.75%.
Notice is hereby given that preference dividend number 34, equal to 70% of the average prime rate for 1 September 2022
to 28 February 2023.The dividend is payable on Monday, 24 April 2023, to shareholders of the Absa Bank preference
shares recorded in the register of members of the Company at the close of business on Friday, 21 April 2023.
The Board of Absa Bank confirm that the Bank will satisfy the solvency and liquidity test immediately after completion
of the dividend distribution and for the next 12 months.
Based on the average prime rate, the preference dividend payable for the period 1 September 2022 to 28 February 2023
would indicatively be 3 509.58904 cents per Absa Bank preference share.
The dividend will be subject to dividends withholding tax at a rate of 20%. In accordance with paragraphs 11.17(a)(i)
to (ix) and 11.17(c) of the JSE Listings Requirements, the following additional information is disclosed:
- The dividend has been declared out of income reserves.
- The local dividend tax rate is twenty per cent (20%).
- The gross local dividend amount is 3 509.58904 cents per preference share for shareholders exempt from the dividend
tax.
- The net local dividend for shareholders subject to withholding tax at a rate of 20% amounts to 2 807.67123 cents per
preference share.
- Absa Bank currently has 4 944 839 preference shares in issue.
- Absa Bank's income tax reference number is 9575117719.
In compliance with the requirements of Strate, the electronic settlement and custody system used by the JSE Limited,
the following salient dates for the payment of the dividend are applicable:
Last day to trade cum dividend Tuesday, 18 April 2023
Shares commence trading ex-dividend Wednesday, 19 April 2023
Record date Friday, 21 April 2023
Payment date Monday, 24 April 2023
Share certificates may not be dematerialised or rematerialised between Wednesday, 19 April 2023
and Friday, 21 April 2023, both dates inclusive. On Monday, 24 April 2023, the dividend will be
electronically transferred to the bank accounts of shareholders.
On behalf of the Board
N Drutman
Company Secretary
Johannesburg
13 March 2023
Absa Bank is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West,
15 Troye Street, Johannesburg, 2001.
Sponsors
Lead independent sponsor
J. P. Morgan Equities South Africa Proprietary Limited
Joint sponsor
Absa Bank (Corporate and Investment Bank)
Date: 13-03-2023 09:13:00
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