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Regulatory approvals secured for Absa to acquire the domestic Wealth and Personal Banking and Business Banking business of HSBC Mauritius.

Regulatory approvals secured for Absa to acquire the domestic Wealth and Personal Banking and Business Banking business of HSBC Mauritius.

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Absa Group is pleased to announce that it has obtained regulatory approval from key regulatory authorities to acquire the domestic Wealth and Personal Banking and Business Banking businesses of the Hongkong and Shanghai Banking Corporation Limited (HSBC), Mauritius branch. The transaction includes the assets and liabilities of approximately 38,000 retail customers and about 400 small and medium enterprises from Business Banking, along with relevant employees.

This transaction is aligned to Absa’s strategy to be a diversified franchise and its ambition to being a leading Pan African bank.

With a strong emphasis on transparency and diligence, respective project teams from HSBC Mauritius and Absa Mauritius are working in close collaboration to ensure a seamless onboarding for the new customers and colleagues alike. The official transition is planned to begin in the next few weeks.

Ravin Dajee

Commenting on this new milestone, Ravin Dajee, Managing Director of Absa Mauritius states: “Now that the regulatory approvals have been obtained, this transaction enters a new stage. We will continue collaborate with HSBC to ensure a seamless transition. Regular communication has been planned throughout the journey to provide timely information and support the transition. We look forward to onboarding both the new customers and colleagues.”

This transaction is in line with Absa’s growth ambition and reinforces its commitment to expand and continue to be an influential player in the banking sector in Africa. The transaction provides Absa the opportunity to further expand its Retail and Business Banking division in Mauritius, leveraging on existing resources, expertise and infrastructure such as its innovative digital solutions.

HSBC will continue to support large and mid-market domestic corporates and international subsidiaries of corporates headquartered outside of Mauritius, with a focus on cross-border trade and/or international business. Markets and Securities Services, multi-currency corporate lending, foreign exchange, trade finance, global custody and sustainable finance will continue to be offered to clients.

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Absa partners with the Karkloof Country Club in a new three-year agreement to support the community

Absa partners with the Karkloof Country Club in a new three-year agreement to support the community

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Following the conclusion of a new three-year agreement with Absa, the Karkloof Country Club will now be known as the Absa Karkloof Country Club.

“Prior to formalising our partnership agreement, Absa has proudly leveraged the outstanding amenities and trails of Karkloof Country Club since 2022, serving as the Team Absa Training Camp for the annual Absa Cape Epic mountain-bike race”, says Daniel Munslow, Managing Executive of Group Communications at Absa. “This partnership has been growing from strength to strength and the new three-year agreement affords us the opportunity to further uplift the communities in which we operate. Our cycling events, such as the Team Absa Training Camp, are more than sporting calendar days. It’s an opportunity to support the local community, business owners and farmers in the region.”

The Absa Karkloof Country Club, situated in the KZN Midlands, offers over 300 kilometres of mountain-bike trails that have, in recent years, twice been voted among the best trails in South Africa by Tread Magazine. The trail network offers something special for everybody – from scenic, flowing single tracks and highly technical trails, to a quiet, level trail where visitors can walk to the magnificent Karkloof Falls.

Absa has also committed its support to surrounding communities. “During the 2024 training camp activities, Absa provided upgrades and refurbishments at Yarrow Intermediate School,” adds Munslow. “This is the same school where Absa donated a stationary Absa Bus, now transformed into a library capable of simultaneously accommodating up to 60 children from Grade R to Grade 7. We pride ourselves on empowering Africa’s tomorrow, together … one story at a time by contributing to the success of our country's literacy rate.”

Andrew Nicholson, Chairman of the Absa Karkloof Country Club, says, “We are extremely excited about the new partnership, which will allow us to continue to expand the incredible work we already do in the community. The club now employs 18 local full-time staff members, as well as two teachers at the Early Childhood Development Centre and a local school. Our schools programme has expanded to provide additional support to the Yarrow School, in support of Absa’s efforts. Several development plans are on the cards for this year at the club and this process has been significantly enhanced by Absa’s partnership.”

The Absa Karkloof Country Club will again host the Sappi Karkloof Classic on 25 and 26 May 2024, marking the 30th anniversary of the event. For the fourth time in 10 years, the event will host Cycling SA Marathon champions, showing ongoing commitment to the region and the trails it offers. Members of the Absa Karkloof Country Club will enjoy free entry to the Sappi Karkloof Classic.

“We look forward to the next three years, as our new partnership with Absa is going to change people’s lives in our community,” concludes Nicholson.

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Absa Group’s eKhaya Colleague Share Scheme scoops Top Champion for Women Award

Absa Group’s eKhaya Colleague Share Scheme scoops Top Champion for Women Award

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Absa Group is delighted to announce that the eKhaya Colleague Share Scheme has once again been celebrated, with the Group winning the Top Champion for Women Award at the inaugural Worker Share Ownership Conference.

Hosted by the Department of Trade, Industry and Competition last week, the conference focused on promoting economic inclusion through Employee Share Ownership Programmes (ESOPs). It brought together ESOP trustees, employee representatives, business representatives, labour leaders, government officials, legal experts, and finance specialists to share insights and best practice.

The award ceremony sought to honour those employers that have notably empowered their employees through innovative and effective ESOP structures. Absa Group was recognised for empowering the highest percentage of women, with 63.1% of the 26 400 staff beneficiaries being female.

Absa’s eKhaya scheme, implemented in September last year, allocated shares to the value of R11.2 billion at the time, including a 4% evergreen Corporate Social Investment Trust and a 3% vesting staff element.

“We are proud to have been honoured once again for our eKhaya Colleague Share Scheme. This transaction demonstrates our commitment to fostering financial inclusion in our communities in keeping with our purpose of empowering Africa’s tomorrow, together... one story at a time,” said Absa Group CEO Arrie Rautenbach.

Rautenbach said women make up the majority of Absa’s employee component and through this transaction and other transformation programmes, the Group has recognises its role as an active force for good, contributing meaningfully to their families, communities and the economy as a whole. “This exemplifies our role as a driver for positive change and sustainable development,” he concluded.

 

Image supplied by Department of Trade, Industry and Competition

Absa Group representatives with President Cyril Ramaphosa, Minister in the Presidency for Women, Youth and People with Disabilities of South Africa Dr Nkosazana Dlamini-Zuma and Minister of Trade, Industry and Competition Ebrahim Patel at the Worker Share Ownership Conference Awards. Absa Group won the Top Champion for Women Award, with the accolade being accepted on behalf of the Group by Absa leaders CEO of Relationship Banking Faisal Mkhize (back row, third from left), Group Chief Human Capital Officer Jeanett Modise (front row, fifth from left) and Group Head of Liquidity Management Palesa Mkhize (front row, seventh from left).

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Absa Group Limited Announces Changes to its Executive Committee

Absa Group Limited Announces Changes to its Executive Committee

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As part of a strategic plan to drive growth and reinforce our position in the market, Absa Group Limited (AGL) today announced changes to the group’s Executive Committee, as outlined below.

The changes are aimed at accelerating the execution of the Group’s strategy to create superior commercial performance and enhance market competitiveness. They are also in line with Absa’s transformation, diversity and inclusion agenda.

GROUP

Group Financial Director

Deon Raju (currently Group Chief Risk Officer and former Group Treasurer) will be appointed the new Group Financial Director with immediate effect. Deon will also join the Absa Group Limited and Absa Bank Limited Boards as an executive director. He is a chartered accountant (CA)SA and Chartered Financial Analyst (CFA) and brings with him over 20 years of experience and expertise from both the finance and risk functions at Absa.

We extend our gratitude to Chris Snyman, who played a key transitional role as Interim Finance Director over the last few months.

Interim Group Chief Risk Officer

Rajal Vaidya (currently Chief Risk Officer at Absa Corporate and Investment Banking) will be appointed as Interim Group Chief Risk Officer.

Everyday Banking Business Unit

Christine Wu will replace Cowyk Fox as Chief Executive: Everyday Banking, also with immediate effect. Christine joined Absa in 2019 as an Executive at Absa Retail and Business Banking. In 2022, she transitioned to Everyday Banking as a Managing Executive: Consumer Product, where she has been responsible for the consumer banking segment. She had end-to-end accountability for core product performance and the transformation of Absa into a digital and data first business.

We would like to thank Cowyk Fox for his immense contribution to our Group. After many years of dedicated service as an integral leader in our business, he has decided to explore new horizons outside the organisation.

“We congratulate our colleagues on their appointments and welcome the new Exco members. It is pleasing to note that the appointments announced today are internal colleagues who have proven track records of delivering results in their respective fields and will contribute further to driving growth and empowering Africa’s tomorrow,” said Absa Group CEO, Arrie Rautenbach.

Deon Raju

Group Financial Director

Rajal Vaidya

Interim Group Chief Risk Officer

Christine Wu

Chief Executive: Everyday Banking

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Absa demonstrates its commitment to diversity and inclusion as it joins the Sunshine Ladies Tour

Absa demonstrates its commitment to diversity and inclusion as it joins the Sunshine Ladies Tour

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Banking giant puts its weight behind the Sunshine Ladies Tour schedule with new R1.2 million tournament

The Sunshine Ladies Tour has announced another major sponsor as Absa joins the 2024 schedule. The new Absa Ladies Invitational will be hosted at Serengeti Estates in Gauteng from 4 to 6 April.

The announcement follows hot on the heels of the Pan-African banking giant unveiling its fresh brand positioning with the tagline, Your story matters. With this sponsorship, Absa is writing an exciting new chapter, underscoring its commitment to diversity and inclusion, not only in the boardroom, but also in the world of sport and within the communities it serves.

With the 2024 Sunshine Ladies Tour (SLT) already keeping golf enthusiasts on the edge of their seats, the Absa Ladies Invitational with prize money of R1.2 million forms part of a strong schedule of eight tournaments, two of which are co-sanctioned with the Ladies European Tour (LET).

“As part of our efforts to be an active force for good in everything we do, we are proud to be part of the Sunshine Ladies Tour and to be fostering diversity and inclusivity in the world of golf,” said Sanah Gumede, Managing Executive for Strategy and Customer Value Management at Absa Relationship Banking. “Although the journey to narrow the gender pay gap is ongoing, Absa Relationship Banking takes pride in actively fostering greater equity through this sponsorship, while also creating more playing opportunities.”

Absa’s sponsorship will also encompass a golf development programme targeted at young women and will include both professional and amateur players.

“As the proud sponsor of the Absa Ladies Invitational, we also look forward to playing our part in bringing clients and communities together as we recognize and celebrate the talent, dedication and skill of women golfers, and contribute to a more balanced and equitable landscape within the sport,” added Gumede.

The Absa Ladies Invitational has already attracted high profile entries, including 15-time winner Lee-Anne Pace, six-time winner Stacy Bregman and three-time winner Casandra Alexander. Previous winners Nadia van der Westhuizen and Anne-Lise Caudal have also confirmed their participation. The 2024 Sunshine Ladies Tour will see the country’s elite women’s professional golfers competing for total prize money of almost R20 million and with live coverage on SuperSport in what is another significant statement regarding the growth of women’s sport in South Africa.

“Absa is immensely proud to be supporting the Sunshine Ladies Tour. Breaking barriers and empowering women in society, sports and the workplace are ingrained in the Absa DNA – and there is great congruence with this, and the work we have already undertaken to promote women’s participation in the renowned Absa Cape Epic through the enduring #SheUntamed initiative. As Absa moves towards a more human-centered approach to banking, initiatives like this are the ultimate embodiment of our commitment to making a meaningful contribution,” says Sydney Nhlanhla Mbhele, Absa’s Group Chief Marketing and Corporate Affairs Officer.

Thomas Abt, Commissioner of the Sunshine Tour and speaking on behalf of the Sunshine Ladies Tour, said: “Together with the Absa Group we now have an extremely competitive Sunshine Ladies Tour that will showcase not only the growing strength of Southern African women’s golf, but also the growing value some of the biggest brands see in women’s golf.”

2024 Sunshine Ladies Tour Schedule

  • 16-18 February: Dimension Data Ladies Pro-Am – Fancourt.
  • 21-23 February: SuperSport Ladies Challenge presented by Sun International – Lost City Golf Course.
  • 6-8 March: Fidelity ADT Ladies Challenge – Blue Valley Golf Estate.
  • 13-15 March: Cape Town Ladies Open – Royal Cape Golf Club.
  • 4-6 April: Absa Ladies Invitational – Serengeti Golf and Wildlife Estate.
  • 10-12 April: Jabra Ladies Classic – Glendower Golf Club.
  • 18-21 April: Joburg Ladies Open – Modderfontein Golf Club (co-sanctioned with the Ladies European Tour)         .
  • 25-28 April: Investec South African Women’s Open – Erinvale Golf Estate (co-sanctioned with the Ladies European Tour).
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Absa group elevates South Africa’s premier golf and lifestyle event as new co-title sponsor of the SuperSport Shootout

Absa group elevates South Africa’s premier golf and lifestyle event as new co-title sponsor of the SuperSport Shootout

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Absa Group is proud to announce its partnership with SuperSport as the new co-title sponsor of South Africa’s premier golf and lifestyle event, the Absa SuperSport Shootout. This sought-after tournament, renowned for its blend of competitive golf and philanthropy, will take place from 31 May to 2 June at the breath-taking Zimbali Estate in Durban.

The SuperSport Shootout has firmly established itself as a highlight on South Africa’s sporting and charitable calendars. Now, with Absa Group’s support, the event is poised to reach new heights of excellence and impact.

Sydney Mbhele, Group Chief Marketing and Corporate Affairs Officer at Absa says, “We are thrilled to be the new co-title sponsor of South Africa’s premier golfing and lifestyle event. Beyond showcasing fantastic golf, the tournament embodies our commitment to making a meaningful difference in communities. Through our “Possibilities Unearthed” initiative, we’ve already begun creating sustainable vegetable gardens at schools in the areas we serve. Our involvement in the SuperSport Shootout allows us to expand this impactful work, leaving a lasting legacy of positive change. We are also a sponsor of the 2024 Sunshine Ladies Tour, a premier professional golf tour for women in South Africa. This ground-breaking partnership underscores Absa’s commitment to fostering the development of women in sport and marks a significant milestone as the company delves into the realm of professional golf.”

“SuperSport Chief Executive Officer, Rendani Ramovha, said, “The tournament is one of those golfing and lifestyle events that bring people from all manner of industries together, whether serious pros or keen amateurs. The Shootout is about partnerships, finding commonality and building camaraderie on the golf course.”

“SuperSport has been a proud partner of the Shootout since its founding – a tournament that has grown to become one of the most eagerly anticipated golf events on Your World of Champions.”

“Now, we are thrilled to welcome Absa, one of the biggest banks and brands in Africa, as a partner to form the Absa SuperSport Shootout.

Ramovha adds, “The event also brings leaders from different fields together in a fun, exciting and interactive golfing spectacle. It is unique in that avid golfers can spend time with likeminded people as well as share the course with pioneers from other respects. There is truly no event like it in South Africa.”

The Absa SuperSport Shootout isn’t just about golf; it’s a platform for giving back. With a long-standing tradition of supporting charitable causes, the event brings together captains of industry, government representatives, sporting icons and corporate sponsors to raise funds for worthy initiatives. During the involvement with the tournament, Absa Group spearheaded the establishment of three sustainable vegetable gardens in Durban, Franschhoek and George. Building on this success, Absa commits to further expanding its community initiatives in 2024.

Since its establishment in 2003, the SuperSport Shootout has raised over R31 million with over R1.6 million donated to various charities, including LIV Village and The Gift of the Givers in 2023.

The 21st edition of the Absa SuperSport Shootout promises an exciting line-up of participants, including some of South Africa’s most illustrious sporting figures. Cricket fans can look forward to seeing Temba Bavuma, South Africa’s cricket captain, in action alongside rugby legends Schalk Brits and Bryan Habana. Adding to the star-studded roster is former Bafana Bafana star Shaun Bartlett. Additionally, government officials and corporate sponsors will join the fray, ensuring a dynamic blend of competition and camaraderie.

While the event is not open for public viewing, fans can catch all the action from the comfort of their homes through televised coverage. Stay tuned for updates and highlights as South Africa’s premier golfing event unfolds.

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Absa Celebrates 22 Years of Supporting Arts and Culture at KKNK

Absa Celebrates 22 Years of Supporting Arts and Culture at KKNK

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The renowned KKNK festival has returned to Oudtshoorn until 31 March, transforming the town into a vibrant hub of visual and performing arts during the Easter season. Sponsored by Absa, a staunch supporter of arts and culture, the festival offers a rich, vibrant program to engage both customers and attendees.

Absa’s involvement this year will be reflective of the bank’s move towards a more human-centred approach to banking, as evidenced through our reimagined brand and the ‘Your story matters’ ethos.

“Our partnership with the KKNK represents a natural extension and continuation of the substantial work that Absa has embarked upon to celebrate arts, culture and our various communities. Initiatives like the KKNK Festival are the ultimate embodiment of our commitment to making a meaningful contribution, and we look forward to a fantastic festival this year,” says Daniel Munslow, Managing Executive: Group Communications at Absa Group.

Absa’s involvement will see the ‘Your story matters’ ethos take centre-stage. As an extension from this, attendees can experience the Absa Kuierkamer on the Feesmark festival grounds, a relaxing space amidst the festival buzz. Visitors can also enjoy daily shows and activities, such as the intimate My Story afternoon concerts showcasing talented musicians and their personal narratives. Dive into the Absa Rooibanksessies to interact with well-known personalities. By night, the Absa Kuierkamer turns into a venue for unplugged music and exclusive dining experiences.

Beyond the festivities, Absa will also be holding practical, information sessions with the youth of Oudtshoorn. In multiple sessions planned over two-days, more than 500 young people will have access to speakers from Absa, the industry and the community at large, where valuable insights and inspirational stories will be shared. Ultimately, it’s about inspiring and arming young community members with practical insights for the future.

In addition to this, visitors can explore Malebogo Molokoane's solo exhibition at the Prince Vintcent building, winner of the 2022 Absa L'Atelier Gerard Sekoto prize. “We call on people to be part of the Absa Maakit Mooi project by showing their creative side and painting a brick that will form part of a functional artwork, adding a creative touch to Oudtshoorn,” adds Munslow.

From stage productions to stand-up comedy, dance performances, children's entertainment, visual arts, talks, and more, the KKNK festival promises diverse experiences for the entire family. Discover the richness of Oudtshoorn as every story finds its rightful stage.

Secure your tickets through Webtickets and explore the full event schedule on the KKNK website. Join Absa for an unforgettable celebration of arts and culture at the KKNK Festival 2024!

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Join Absa at the KKNK Festival 2024: A Celebration of Arts and Culture

Join Absa at the KKNK Festival 2024: A Celebration of Arts and Culture

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The renowned KKNK festival returns to Oudtshoorn from 23rd to 31st March, transforming the town into a vibrant hub of visual and performing arts during the Easter season. Sponsored by Absa, a loyal supporter of arts and culture, the festival offers a rich, vibrant programme.

Experience the Absa Kuierkamer on the Feesmark festival grounds, a relaxing space amidst the festival buzz. Enjoy daily shows and activities, such as the intimate My Story afternoon concerts showcasing talented musicians and their personal narratives. Dive into the Absa Rooibanksessies to interact with well-known personalities. By night, the Absa Kuierkamer turns into a venue for unplugged music and exclusive dining experiences.

In addition to the festival, explore Malebogo Molokoane's solo exhibition at the Prince Vintcent building, winner of the 2022 Absa L'Atelier Gerard Sekoto prize. Be part of the Absa Maakit Mooi project by showing your creative side and painting a brick that will form part of a functional artwork, adding a creative touch to Oudtshoorn.

From stage productions to stand-up comedy, dance performances, children's entertainment, visual arts, talks, and more, the KKNK festival promises diverse experiences for the entire family. Discover the richness of Oudtshoorn as every story finds its rightful stage.

Secure your tickets through Webtickets and explore the full event schedule on the KKNK website. Join Absa for an unforgettable celebration of arts and culture at the KKNK Festival 2024!

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Breaking the trail for the 20th anniversary of the Absa Cape Epic!

Breaking the trail for the 20th anniversary of the Absa Cape Epic!

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The Absa Cape Epic, Africa’s untamed mountain-biking (MTB) race, is the premier mountain-bike stage race in the world. The 20th edition of the Absa Cape Epic, taking place from 17 to 24 March 2024, will include 613 gruelling kilometres with 16 850 metres of climbing throughout eight days of racing.

To celebrate 20 years of the Absa Cape Epic, Absa committed to 20 all-women in teams within Team Absa (20/60 teams will be women) and for a third year, the first session of The Epic Trippers will be dedicated to 40 Absa #SheUntamed women riders with an impressive line-up that acts as the stomping ground for those who want to test their limits but are not ready for the full eight days, as well as for captains of industry who are superfans of the event but are still working towards this bucket list item.

The 2024 host towns are:

  • Somerset West, Cape Town (Lourensford Wine Estate)
  • Tulbagh (Saronsberg Wine Estate)
  • Wellington (Cape Peninsula University of Technology/CPUT)
  • Stellenbosch (Stellenbosch University)

Absa has been the Title and Exclusive Naming Rights Sponsor of the event since 2006. In September 2023, Absa announced our three-year extension as title sponsor of the event until 2027.

2024 marks the 20th anniversary of the iconic Absa Cape Epic, and in celebration of this milestone, Absa is taking the #SheUntamed initiative to new heights. The bank is setting a bold goal to assemble 20 all-women teams as part of Team Absa #SheUntamed 20for20. This commitment will ensure that 50% of the team comprises women of colour, constituting just over a third of the Team Absa peloton. This commitment extends to the Epic Trippers programme with an ongoing all-women Session 1.

Tina Venter, Absa Executive for Marketing Operations, says, "Absa is dedicated to championing the empowerment of women in cycling and reminding them that their Story Matters. This commitment goes beyond mere inclusivity, positioning Absa as an intentional driver of change. Our goal is to empower women not only to be prepared at the start of the event, but also to revel in the accomplishment of completing the challenging eight-day journey of the Absa Cape Epic – the Untamed African mountain bike stage race that tests all limits. Through this initiative, we aim to create a foundation for all women and girls to forge their unique paths, ultimately leaving a lasting legacy."

The Absa Cape Epic, a true test of endurance, demands up to 20 hours of weekly training to ensure that participants start the race in peak physical condition.

Every year, the selected #SheUntamed group of female mountain bikers are provided with substantial support before and during the event to take on the Absa Cape Epic. For those still preparing, the dedicated #SheUntamed Absa Cape Epic sampling experience offers a two-day adventure within the Epic Trippers programme. The community comprises women from diverse backgrounds, including both novice and seasoned riders, fostering knowledge-sharing and mentorship.

While these 40 women collectively tackle the formidable challenge of starting and finishing the 20th edition of the Absa Cape Epic, each one will embark on a unique journey. Their inspiring stories will undoubtedly encourage other women to set and achieve their own mountain biking goals. Whether aspiring to complete an Absa Cape Epic or simply become a capable mountain biker, every woman has the potential to define and achieve her own path.

We wish our 20 all-women teams all the best at the 2024 Absa Cape Epic scheduled to take place from 16-24 March in Stellenbosch.

About #SheUntamed:

Launched in 2019, the award-winning #SheUntamed initiative aims to promote women participation in the race that measures all, the Absa Cape Epic. #SheUntamed embodies Absa's commitment to empowering women, fostering inclusivity and breaking down barriers within the cycling realm. Since its inception, #SheUntamed has helped with the remarkable surge in female participation in the race. The number has increased from 36 in its inaugural year to an impressive 146 in 2023. This achievement is largely attributed to Absa's purposeful initiatives, in collaboration with Cape Epic, which includes increased participation of women in the Team Absa line-up.

In a heart-warming effort to drive a force for good, Absa partnered with the official charity partner of the Absa Cape Epic, "ILoveBoobies." Together, they committed to over 1000 free breast examinations to South African women during the course of the Absa race calendar.

For more information, please contact

Daniel Munslow

Absa Group Managing Executive: Group Communications

PRmedia@absa.africa

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Absa Group Reports Resilient Earnings in Tough Environment; Underlying Business Strong and Growing

Absa Group Reports Resilient Earnings in Tough Environment; Underlying Business Strong and Growing

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*Salient points

Revenue increased 8% to R104.5 billion
Operating costs increased 10% to R54.5 billion
Cost-to-income ratio increased to 52.1% (from 51%)
Pre-provision profit increased 6% to R50.1 billion
Impairments increased 13% to R15.5 billion
Headline earnings increased 1% to R20.9 billion
Return on equity declined to 15.3% (from 16.4%)
Group CET 1 ratio declined to 12.5% (from 12.8%)
Dividend per share increased 5% to R13.70 per share
*Note: Normalised values are shown (stripping out the effect of the separation from Barclays PLC).

Absa Group reported a resilient set of results for 2023, delivered in an operating environment that was weaker than expected, particularly in South Africa where continued electricity supply disruptions, supply chain logistic issues and sticky inflation along with a higher interest rate environment weighed on growth prospects for customers and clients alike. However, Africa regions reported very strong growth, well ahead of South Africa.

Within this context, normalised headline earnings increased 1% as pre-provision growth of 6% reflected continued momentum in the business, offset by higher credit impairments, particularly in South Africa, Absa’s largest market by revenue. Strong revenue growth of 8% to R104.5 billion meant that the Group crossed the R100 billion revenue threshold for the first time, with stronger growth being generated within Africa Regions.

Arrie Rautenbach
Arrie Rautenbach

“Despite a challenging climate, Absa remains resilient and the underlying franchise is strong and growing,” said Arrie Rautenbach, Absa Group Chief Executive Officer. “We are seeing the benefits of the strategic choices we made in 2018, as is evident from our diversified business, growing customer franchise and engaged workforce,” he said.

The Group’s customer base expanded 4% to 12.2 million in 2023 from 11.7 million a year earlier and customer experience scoreswhich measure the quality of service experienced by customers, increased across all business units.

Absa is driving organisational health gains through a journey that commenced with a strengthened leadership team and a reorganised business model in 2022. In 2023, the Group rallied behind a co-created corporate purpose and a refreshed set of values as it drives a culture shift in order to promote sustainable outcomes.

Employee net promoter score, which indicates the likelihood of employees recommending Absa as a bank of choice, increased materially, signaling enhanced organisational health.

The Group’s broad-based black economic empowerment transaction, which placed 7% of Group shareholding (equivalent to R11.2 billion at the time) in the hands of employees and communities, is anticipated to further support this culture shift.

In addition to its investment in the B-BBEE transaction, Absa invested in other areas for future growth, recruiting additional frontline staff, acquiring new technology and refreshing its brand. These were among costs that contributed to a 10% increase in operating expenses. Absa expanded its employee base and at the same time invested more in new digital capabilities to enhance customer experience both in branches and online. The number of digitally active customers increased from 3.4 million to 3.8 million.

Absa also invested in updating its brand identity and positioning during 2023, culminating in the launch in February 2024 of its repositioned brand, signaling a shift to being a more deliberately customer-centric business with the new brand promise of ‘Your Story Matters’. The new brand promise commits Absa to demonstrating empathy and offering seamless customer experience.

“We have made significant strides in the last five years in strengthening our business,” said Chris Snyman, Absa Group interim Financial Director. “We have strengthened our balance sheet, enhanced diversification and we continued to grow, while focusing on efficiency," he said. The Group achieved 7% compound growth in revenues since 2018, while cost-to-income ratio improved to 52% from 58% in 2018.

Absa’s results showed the benefit of diversification and Africa regions grew to 29% of total Group pre-provision profit, compared with 20% in 2018. The Group’s Corporate and Investment Banking arm now contributes a third of Group pre-provision profit, compared with 28% in 2018.

Absa acquired HSBC Mauritius’ Wealth, and Personal Banking and Business Banking businesses, pending regulatory approvals, during the year. Further afield, the Group has established an office in Beijing as it looks to be a facilitator of trade flows into Africa through a strategic presence in the North, West and East of the globe.

“This expansion is testament to our ambition to grow in strategic markets, as we look to further diversify our operations,” said Rautenbach.

Business unit performance

Product Solutions Cluster (PSC)

(SA home loans, vehicle financing, insurance, investment, advisory services)

Headline earnings decreased by 24%, weighed down by higher impairments in the secured lending businesses offsetting solid growth in Insurance SA.

Absa maintained its share of home loans at 23.8% in a subdued market, which saw application volumes decrease by 17% across the industry.

Vehicle asset financing production increased and Absa increased its market share slightly to 24.7%

Life Insurance experienced new business volume growth of 5%, as customer journeys were further integrated and value propositions enhanced across channels.

Non-life insurance partnered with the vehicle asset finance division, enabling growth in value added products and digital motor product of 14% and 94%, respectively, year on year.

Everyday Banking (EB)

The business is driving customer-centricity, reflected in the business unit’s Customer Experience Index, which has improved every year since 2019. An additional R500 million in value was extended to customers through a multitude of value-added initiatives, including making Absa Rewards free. A total of R1 billion in cumulative pricing relief has been extended to Everyday Banking customers since 2020.

The active customer base grew by 2%, with notable growth in the young adult and retail affluent segments. New-to-bank customers grew by 21%, underpinned by acquisitions across transactional products and credit cards.

The business retained its position as the least complained about financial institution of the big five banks in South Africa, according to the Banking Ombudsman.

To promote financial inclusion, Absa was one of the first banks to implement PayShap, a ground-breaking low-cost payment system deployed in the first half of 2023.

Headline earnings declined by 17% as significantly higher credit impairments offset strong pre-provision profit growth.

Relationship Banking (RB)

(Wealth and private clients and SMEs in South Africa)

Headline earnings declined marginally by 1% as investments were made in digital and frontline staff.

Key priorities included increasing the scale of the SME segment, providing tailored customer value propositions and improving ease of doing business.

Production momentum in the lending products was strong, with double digit growth in commercial asset finance, in both the commercial and corporate customer areas. Clients’ relationship as a primary partner were deepened, reflective in the 4% growth in active customer numbers. Customer experience scores also improved significantly.

Corporate and Investment Banking (CIB) 

(Corporate and investment banking)

CIB recorded strong results driven by a Pan-African strategy, built around meeting client needs across the continent, that was implemented several years ago. Headline earnings increased by 23% as pre-provision profit grew 13% with strong growth from CIB ARO which grew faster than SA.

CIB’s performance was underpinned by the following key elements:

  • Client primacy improved following a continued focus on deepening and diversifying CIB client relationships across markets.
  • Traction has been made with digital migration of clients onto the Absa Access platform, which is the strategic client platform for clients to engage with CIB products and services across the continent and across mobile, desktop and online channels.

Absa Regional Operations - Retail and Business Banking (ARO RBB)

(Retail, business banking and insurance products and services for individuals, small to medium enterprises and commercial customers across the region.)

Headline earnings increased by 27% to R1.5 billion on the back of strong 27% pre-provision profit growth. The delivery of key projects has supported an enhanced channel experience and connected payment platforms, while building on the strength of the Absa brand in Africa. This was evident in the active customers base, which increased by 16% to 2.4 million.

Targeted strategic investments resulted in the implementation of a number of customer-centred and innovative solutions. These include, amongst others:

  • A digital onboarding capability, allowing for a quick and efficient, channel agnostic onboarding solution which provides an enhanced customer experience in six of our markets.
  • Mobile in-app authentication, a major security update to digital platforms, enabled clients to bank more securely
  • MobiTap, a first-to-market innovation launched in three markets, which allows merchants and SMMEs to use their smartphones (instead of traditional point-of-sale devices) to effect contactless card transactions;
  • Digitising our credit card offerings in eight markets enables clients to activate their card, view their card details, freeze (or unfreeze) their cards, view or reset their PIN on their banking application or on the internet banking
An Active Force for Good

Absa deepened work aligned to its ‘active force for good’ strategic business priority, which commits the Group to working with clients and communities in managing an orderly and just transition towards a more sustainable and equitable future.

Absa announced its long-term ambition to reach a Net Zero position by 2050 for scope 1, 2, and 3 emissions and made progress in entrenching is sustainability strategy across the Group.

The Group’s ambition to be a leader in sustainable financing in Africa was bolstered as sustainability-linked financing increased to R42.6 billion, including providing R31 billion in financing for renewable energy projects in South Africa.

To help facilitate lending for green buildings, Absa secured a loan of up to R4.5 billion from the IFC, enabling the Group to increase access to green building finance for developers and individual home buyers.

Absa also increased its investment in communities by allocating R286 million to support education and youth employability, strategic engagement initiatives as well as corporate community support, to enable inclusive sustainable economic growth in Africa.

Outlook

The economic environment remains uncertain, with continued geopolitical tensions and elections in several of Absa’s operating markets this year.

Absa expects the South African economy to grow by a muted 1.1% in 2024 given infrastructure shortfalls and the higher interest rate environment which is placing significant pressure on many consumer-facing sectors.

However, Absa believes that the current policy rate is the peak for this cycle and that the South African Reserve Bank is likely to deliver a measured pace of cuts beginning in the second half of 2024.

In our Africa Regions, Absa expects GDP-weighted growth for ARO countries will rise to 4.8% in 2024, led by East African markets.

Based on these assumptions, and in the absence of unforeseen events, Absa expects high single-digit revenue growth in 2024, driven by both net interest income and non-interest income growth. The credit loss ratio is likely to remain above the Group’s through-the-cycle target range of 75 to 100 basis points, but improve slightly year-on-year as interest rates start to moderate. This should result in a return on equity of 15% to 16% in 2024, which the Group remains focused on improving sustainably over time to above 17%.

Click here to watch Absa Group video 2023 full-year highlights

Click here to view the Absa Group 2023 financial results investors and media presentation