JOHANNESBERG, Mar 10 – South African lender Absa Group reported a 12.25 percent increase in full year earnings, supported by lower credit impairments and stronger performance from its Corporate and Investment Banking (CIB) unit and operations across Africa.
The bank posted core earnings of 24.7 billion rand ($1.5 billion) for the year ended December 31. Pre provision profit rose 4 percent to 53.5 billion rand.
Revenue increased by 5 percent to 115.7 billion rand with the bank saying growth was largely driven by strong non interest income, while net interest income recorded more moderate gains amid limited retail loan expansion and some margin pressure.
Absa said its businesses outside South Africa delivered stronger earnings growth than the domestic market. The group operates in 11 other African countries, where units benefited from solid pre provision profit growth and continued customer expansion.
In South Africa, the lender reported improved credit quality across several loan portfolios. Overall credit impairments declined 6 percent to 13.4 billion rand.
The group’s credit loss ratio, which measures bad loans relative to total lending, improved to 88 basis points from 103 basis points a year earlier.
Absa also declared a final dividend of 850 cents per share
