ABSH – Unaudited condensed consolidated results
for the period ended June 30, 2022 and preferred stock dividend
Absa Bank Limited
Registration number: 1986/004794/06
Incorporated in the Republic of South Africa
JSE share code: ABSH
(“Absa Bank” or the “Company”)
Unaudited summary consolidated results
for the reporting period ended June 30, 2022 and declaration of preferred stock dividend
We are an African bank, inspired by the people we serve and committed to being a globally respected organization
of which Africa can be proud. As a financial services provider, we play an essential role in the economic life of
individuals, businesses and nations. To this end, we offer a universal set of products and services in retail,
business, corporate, investment and wealth banking.
– 4 countries(1)
– 619 points of sale(2)
– 6,297 ATMs
– 25,758 employees
– 2.2 million digitally active customers
– 105,375 point-of-sale devices
(1) Excluding security entities in the United Kingdom and the United States.
(2) Includes branches and sales centers.
We bring possibilities to life
Possibilities come alive when we meet every challenge with tenacity, ingenuity, positivity and creativity.
We invented a new word for our purpose, which is the driving force behind everything we do, a way of doing things
which is unique to our continent.
We call it Africanacity
– The Absa Bank group is certified Top Employer 2022 in Africa by the Top Employer Institute.
– Absa is targeting 100 billion rand in sustainable finance by 2025.
– Absa was awarded Best Digital Bank in South Africa at the Global Banking and Finance Awards 2022.
– Top Honors for CIB at the EMEA Finance Achievement Awards 2021 Best Equity House in Africa and Best Syndicated
Lending house in southern Africa.
– First place overall in an inaugural survey of how investment professionals rate local companies in investor relations.
– Launch of the Absa Small Business Friday campaign as a commitment to support small and medium-sized businesses by
build strong relationships with them and create innovative solutions that meet their unique needs.
Normalized financial results following the separation of Barclays PLC
A normalized view of the 2022 interim results is provided, which takes into account the consequences of the separation
of Barclays PLC. This view better reflects the Bank’s underlying performance. International financial information
Financial results in accordance with IFRS will continue to be presented as required by the Companies Act and
JSE Limited (JSE) listing requirements and include a reconciliation between the standardized views and IFRS.
Normalized results will be presented for future periods to the extent that the financial impact of the
The separation is considered material.
Performance overview for the period ended June 30, 2022
2022 8.7% increase 2021 2022 8.7% increase 2021
R31 300m IFRS R28 797m R31 278m Normalized R28 774m
Nominal earnings per ordinary share
2022 17.8% increase 2021 2022 15% increase 2021
1,371.4 cents IFRS 1,163.7 cents 1,430.1 cents Normalized 1,243.8 cents
Basic earnings per share
2022 15.5% increase 2021 2022 12.7% increase 2021
1,337.9 cents IFRS 1,158.1 cents 1,396.8 cents Normalized 1,238.9 cents
Net asset value per ordinary share
2022 5.2% increase 2021 2022 6.6% increase 2021
20,100 cents IFRS 19,100 cents 19,336 cents Normalized 18,133 cents
Return on equity
2022 Increase 2021 2022 Increase 2021
13.7% IFRS 12.5% 14.9% Normalized 14.2%
2022 Reduced 2021 2022 Reduced 2021
55.8% IFRS 58.4% 54.6% Normalized 56.5%
Net interest margin
2022 Increase 2021 2022 Increase 2021
3.70% IFRS 3.62% 3.70% Normalized 3.62%
Dividend per preferred share
2022 16.7% increase 2021
2,883.42466 cents IFRS 2,470.13699 cents
Growth in loans and deposits
– Gross loans and advances (11% increase) R1 031.6 billion (2021: R930 billion)
– Deposits (8% increase) R1,009.9bn (2021: R939bn)
– Stage 3 loans/gross loans and advances ratio 4.95% (2021: 5.45%)
Liquidity coverage ratio
– 122.6% (2021: 131.1%)
– Common Equity Tier 1 ratio 13.1% (2021: 11.8%)
This abbreviated announcement is the responsibility of the directors of Absa Bank Limited. It’s only one
summary of information in the full announcement.
Any investment decision made by stakeholders should be based on review of the full announcement available
on the Company’s website at https://www.absa.africa/absaafrica/investor-relations/financial-results/ and
on the following JSE link: https://senspdf.jse.co.za/documents/2022/jse/issh/ABSH/Interim22.pdf
The full interim report is available on the Company’s website, copies of the full announcement may also
be requested from the registered office of the Company, free of charge, during office hours on normal working days,
subject to COVID-19 office protocols. The full interim report is also available at the sponsor’s office.
7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001
board of directors
Independent non-executive directors
MS Moloko (Independent Chairman), NS Mjoli-Mncube (Lead Director), T Abdool-Samad, F Okomo-Okello(2),
AB Darko(1) (3), RA Keanly, R van Wyk
A Rautenbach (Group CEO), JP Quinn (Group CFO)
(1) British (2) Kenyan (3) Ghanaian
Preferred Share Interim Dividend Statement Number 33
Absa Bank Preferred Shares have an effective coupon rate of 70% of Absa Bank Preferred Overdraft in effect
loan rate (prime rate). Absa Bank’s current prime rate is 9%.
Notice is given of preferential dividend number 33, equal to 70% of the average prime rate on March 1, 2022
as of August 31, 2022 per Absa Bank preference share has been declared, for the period from March 1, 2022 to August 31, 2022.
The dividend is payable on Monday, September 19, 2022 to shareholders of registered Absa Bank preferred shares
in the register of partners of the company at the close of business on Friday, September 16, 2022.
Absa Bank Board of Directors confirms that the bank will pass the solvency and liquidity test immediately after
finalization of the dividend distribution.
Based on the average prime rate, the preferential dividend payable for the period from March 1, 2022 to August 31, 2022
would be indicatively 2,883.42466 cents per Absa Bank preferred share, assuming there is no
subsequent changes to the prime rate between the reporting date and August 31, 2022.
The dividend will be subject to dividend withholding tax at the rate of 20%. In accordance with paragraphs 11.17
(a)(i) through (ix) and 11.17(c) of the JSE Limited Listing Requirements, the following additional information is disclosed:
– The dividend was declared on the income reserves.
– The local tax rate on dividends is twenty percent (20%).
– The amount of the gross local dividend is 2,883.42466 cents per preferred share for shareholders exempt from
– The net local dividend for shareholders subject to withholding tax at the rate of 20% amounts to 2,306.73973 centimes
per preferred share.
– Absa Bank currently has 4,944,839 preference shares outstanding.
– Absa Bank’s income tax reference number is 9575117719.
In accordance with the requirements of Strate, the electronic settlement and custody system used by JSE Limited,
the following important dates for the payment of the dividend apply:
Last day to trade with dividend Tuesday, September 13, 2022
Shares begin ex-dividend trading Wednesday, September 14, 2022
Record date Friday, September 16, 2022
Payment date Monday, September 19, 2022
Share certificates cannot be dematerialized or rematerialized between Wednesday, September 14, 2022
and Friday, September 16, 2022, both dates inclusive. On Monday, September 19, 2022, the dividend will be
electronically transferred to shareholders’ bank accounts.
On behalf of the Council
NR Drutman Johannesburg
Secretary General August 15, 2022
Absa Bank Limited is a company domiciled in South Africa. Its head office is located on the 7th floor, Absa Towers West,
15 Troye Street, Johannesburg, 2001.
Lead Independent Sponsor
JP Morgan Equities South Africa Proprietary Limited
Absa Bank Limited (corporate and investment banking)
Date: 2022-08-15 07:24:00
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