DOCSLIB.ORG

Absa Group Limited Audited Summary Consolidated Financial Results for the Reporting Period Ended 31 December 2020 Contents

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Absa Group Limited Audited Summary Consolidated Financial Results for the Reporting Period Ended 31 December 2020 Contents Absa Group Limited Audited summary consolidated financial results for the reporting period ended 31 December 2020 Contents 2 Profit and dividend announcement 6 IFRS summary consolidated financial results 8 Summary consolidated IFRS salient features 9 Summary consolidated statement of financial position 10 Summary consolidated statement of comprehensive income 12 Summary consolidated statement of changes in equity 16 Summary consolidated statement of cash flows 16 Notes to the summary consolidated statement of cash flows 17 Notes to the summary consolidated financial results 60 Summary consolidated normalised financial results 61 Summary consolidated normalised salient features 62 Summary consolidated reconciliation of IFRS results to normalised financial results 64 Contact information The Board of Directors (Board) oversees the Group’s activities and holds management accountable for adhering to the risk governance framework. To do so, directors review reports prepared by the businesses, risk, and others. They exercise sound independent judgement, and probe and challenge recommendations, as well as decisions made by management. Finance is responsible for establishing a strong control environment over the Group’s financial reporting processes and serves as an independent control function advising business management, escalating identified risks and establishing policies or processes to manage risk. Finance is led by the Financial Director who reports directly to the Chief Executive Officer. The Financial Director has regular and unrestricted access to the Board as well as to the Group Audit Compliance Committee (GACC). The GACC and the Board are satisfied that the details disclosed in the SENS result in the fair presentation of the summary consolidated financial results and comply, in all material respects, with the relevant provisions of the Companies Act, JSE Listings Requirements, IFRS and interpretations of IFRS, and SAICA’s Reporting Guides. Absa Group Limited Summary consolidated financial results for the reporting period ended 31 December 2020 Authorised financial services and registered credit provider (NCRCP7) Registration number: 1986/003934/06 Incorporated in the Republic of South Africa JSE share code: ABG ISIN: ZAE000255915 These summary consolidated financial results were prepared by Absa Group Financial Control under the direction and supervision of the Financial Director, J P Quinn CA(SA). The financial information (the summary consolidated financial results and the consolidated and separate financial statements for the year ended 31 December 2020) is available for inspection at the Company’s registered office on weekdays from 09:00 to 16:00. The consolidated and separate financial statement and full audit opinion, including any key audit matters, will be available at https://www.absa.africa/absaafrica/investor-relations/annual-reports/ when the Group’s consolidated and separate financial statements are released on or about 15 March 2021. Absa Group Limited Audited summary consolidated financial results for the reporting period ended 31 December 2020 1 Profit and dividend announcement for the reporting period ended 31 December The numbers in the profit commentary represent IFRS results, unless specifically indicated as normalised. Salient features Absa Group Limited (the Group) discloses International Financial Reporting Standards (IFRS) financial results and a normalised view, which adjusts for the financial consequences of separating from Barclays PLC. IFRS basis • The Covid-19 pandemic and resulting lockdowns and economic downturn across our presence countries had a material impact on the Group’s performance. • Diluted headline earnings per share (HEPS) fell 58% to 730.5 cents from 1 747.6 cents. • No ordinary dividend was declared for the period. • Retail and Business Banking (RBB) South Africa’s headline earnings declined 55% to R4 270m, Corporate and Investment Bank (CIB) South Africa declined 6% to R3 035m, and Absa Regional Operations (ARO) declined 56% to R1 589m. • Return on equity (RoE) decreased to 5.2% from 13.1%. Revenue increased 2% to R81.6bn and operating expenses declined 1% to R48.1bn, resulting in a 59.0% cost-to-income ratio. • Pre-provision profit increased 7% to R33.5bn. • Credit impairments increased 163% to R20.6bn, resulting in a 1.92% credit loss ratio from 0.80%. • Absa Group’s IFRS Common Equity Tier 1 (CET 1) ratio of 11.2% remains well above regulatory requirements and within the Board’s target range. • Net asset value (NAV) per share rose 2% to 13 957 cents. Normalised basis • Diluted normalised headline earnings per share (HEPS) fell 51% to 946.0 cents from 1 923.3 cents. • Normalised return on equity (RoE) decreased to 7.2% from 15.8%. • Normalised revenue increased 2% to R81.4bn and operating expenses declined 2% to R45.6bn, resulting in a 56.0% cost-to-income ratio. • Normalised pre-provision profit increased 7% to R35.8bn. • Normalised net asset value (NAV) per share rose 4% to 13 103 cents. Normalised reporting Since the process of separating from Barclays PLC continues to have a material financial impact, Absa Group continues to report IFRS-compliant financial results and a normalised view. The latter adjusts for the consequences of the separation and better reflects its underlying performance. Normalisation adjusts for the following items: R67m (2019: R195m) of interest earned on Barclays PLC’s separation contribution; hedging revenue linked to separation activities of R144m (2019: R36m loss); operating expenses of R2 535m (2019: R2 410m) and R270m (31 December 2019: R113m) of other expenses, plus a R450m (2019: R538m) tax impact of the aforementioned items. In total, these adjustments added R1 927m (2019: R1 739m) to the Group’s normalised headline earnings during the period. As normalisation occurs at a Group level, it does not affect divisional disclosures. Constant currency Constant currency (CCY) pro forma financial information has been presented to illustrate the impact of changes in the Group’s major foreign currencies, namely the Botswana Pula, Ghanaian Cedi, Kenyan Shilling, Mauritius Rupee, Mozambique Metical, Seychelles Rupee, Tanzanian Shilling, Uganda Shilling, United States Dollar and Zambia Kwacha. The constant currency pro forma financial information has been prepared for illustrative purposes only and, because of its nature, the CCY pro forma financial information may not fairly present the Group’s financial position, changes in equity, results of operations or cash flows. In determining the CCY pro forma financial information, amounts denoted in the above listed currencies for the current period and prior period have been converted to the presentation currency using the spot exchange rate as at 31 December 2019. The CCY pro forma financial information is the responsibility of the Directors. Overview of results Absa Group’s headline earnings declined 58% to R6 038m from R14 526 m and diluted HEPS fell 58% to 730.5 cents from 1 747.6 cents. The Group’s RoE decreased to 5.2% from 13.1% and its return on assets was 0.40% from 1.07%. Revenue grew 2% to R81 593m, with net interest income growing 5% and non-interest income declining 3%. The Group’s net interest margin decreased to 4.17% from 4.50%, largely due to significant policy rate cuts during the period and a change in balance sheet composition. With operating expenses declining 1%, the cost to-income ratio improved to 59.0% from 60.9%, and pre-provision profit grew 7% to R33.5bn. In CCY, pre-provision profit increased 5% and headline earnings fell 53%. Credit impairments grew 163% to R20.6bn, resulting in a 1.92% credit loss ratio from 0.80%. Gross loans and advances to customers grew 3% to R974bn, while deposits due to customers rose 15% to R952bn. The Group’s NAV per share increased 2% to 13 957 cents. No ordinary dividend was declared for the period. RBB South Africa’s headline earnings fell 55% to R4 270m, while CIB South Africa’s earnings declined 6% to R3 035m, both due to materially higher credit impairments. Total CIB headline earnings decreased 17% to R4 945m, given significantly higher credit impairments. ARO’s headline earnings fell 56% to R1 589m, or 66% in CCY, with RBB and CIB declining 120% and 30%, respectively. South African headline earnings declined 50% to R6 295m, while Africa Regions fell 54% to R1 670m, or 63% in CCY. 2 Absa Group Limited Audited summary consolidated financial results for the reporting period ended 31 December 2020 Profit and dividend announcement for the reporting period ended 31 December Operating environment The Covid-19 pandemic upended the global economy in 2020, producing historic declines in economic activity across most countries. The IMF expects a global recession with real GDP declining 3.5% in 2020, with developed economies among the most impacted by the pandemic. The UK is estimated to have shrunk by 10% during 2020, the Euro Area by 7.2% and the US by 3.4%. Monetary and fiscal policy across all major economies are highly accommodative. Advanced economies are willing to stabilise public finances very slowly and, at the margin, to extend further policy support should economic activity stutter further. Coming into 2020, South Africa’s economy was already under pressure and shrinking, amid low consumer and business confidence, electricity supply concerns and delayed structural reforms. The hard lockdown during the second quarter produced a historic decline in economic activity, and even as restrictions eased in subsequent months, many sectors remained under significant pressure. Real GDP shrank 7.1% during 2020, well below the 0.9% growth we expected before the pandemic. Aided by modest inflation, the Reserve Bank reduced the policy rate by 300 basis points (bps), to a record low of 3.5%. The government also provided direct support to a large number of vulnerable households and businesses, which saw the fiscal deficit increase sharply. In light of its deteriorating debt metrics, Moody’s withdrew South Africa’s last investment grade credit rating in March 2020. Growth in our main ARO countries also slowed sharply during 2020.
Load more

Recommended publications
  • Financial Year Ending 28 Febuary 2014
    Finbond Group Limited & Finbond Mutual Bank Integrated Annual Report for the year ended 28 February 2014 TABLE OF CONTENTS Executive Summary Corporate Governance Financial Statements Additional Information Vision and Mission 4 Risk Management Audit Committee Report 54 Notice to shareholders 124 Core Values 4 Framework 40 Independent Auditors’ Report 57 Form of Proxy 131 About Us 5 Basel III and Regulatory Directors’ Report 58 Corporate Information 135 What is a Mutual Bank? 6 Capital 45 Company Secretary’s GRI Sustainability index 136 Our Branches 7 Economic Risk Capital 47 Certificate 61 Declaration 139 Key Performance Indicators 8 Corporate Governance 48 Remuneration Report 62 Materials Usage 140 Human Capital Development 9 Social and Ethics Committee Statement of Financial Service Standards 11 Report 51 Position 64 Internal Audit 12 Directors’ Responsibilities 52 Statement of Comprehensive Compliance 13 Approval of Financial Income 65 Regulation 14 Statements 52 Statement of Changes in Financial Highlights 15 Equity 66 Consumer Education 17 Statement of Cash Flow 68 Directorate 18 Accounting Policies 69 Product Offering 24 Notes to the Financial What’s in an icon? 26 Statements 79 Branding 27 Major Individual Holdings 122 CEO’s Review 28 Shareholders’ Diary 122 Social Responsibility 35 Chairman’s Review 36 Finbond Group Limited & Finbond Mutual Bank Integrated Annual Report 2014 1 The Victor If you think you are beaten, you are. If you think you dare not, you don’t. If you like to win but think you can’t, It’s almost a cinch you won’t. If you think you’ll lose, you’re lost. For out in the world we find Success begins with a fellow’s will.
    [Show full text]
  • The Study of the Emergence of Entry-Level Bank Branches in South Africa
    The Study of the Emergence of Entry-level Bank Branches in South Africa Final Report July 2013 The Study of the Emergence of Low Cost Bank Branches in South Africa Date: 2013/06/21 Contact Information Genesis Analytics (Pty) Ltd Office 3, 50 Sixth Road Hyde Park, 2196, Johannesburg South Africa Post to: PO Box 413431, Craighall, 2024 Johannesburg, South Africa Tel: +2711 994 7000 Fax: +2711 994 7099 www.genesis-analytics.com Authors Darrel Orsmond Kalila Mackenzie Tholoana Mokoena Craig van Rensburg www.genesis-analytics.com Covering Letter / Forward The Centre for Financial Regulation & Inclusion The Vineyards Office Estate Farm Farm 2, Regent House 99 Jip de Jager Drive Belville Cape Town South Africa 7530 Attention: Mia Thom Dear Mia, It is with great pleasure that we send to you the final report on the emergence of low-cost bank branches in South Africa. Sincerely Genesis-Analytics Team Table of Contents EXECUTIVE SUMMARY ................................................................................ I 1. INTRODUCTION ...................................................................................... I 2. THE SHIFTING BANKING LANDSCAPE ............................................... II 3. ENTRY-LEVEL BANKING STRATEGIES ............................................. III 4. EMERGING TRENDS ............................................................................. IV 5. KEY FINDINGS: COMMON ELEMENTS OF AN ENTRY-LEVEL BANKING STRATEGY ........................................................................... VI 6. CONSIDERATIONS
    [Show full text]
  • 2013 Review Review on the Transformation of the Financial Sector of South Africa
    2013 REVIEW REVIEW ON THE TRANSFORMATION OF THE FINANCIAL SECTOR OF SOUTH AFRICA First Draft 0 CONTENTS 1 FOREWORD ......................................................................................................................... 4 2 EXECUTIVE SUMMARY ........................................................................................................ 6 2.1 BACKGROUND ..................................................................................................................... 6 2.2 The Financial Sector Charter Council .................................................................................. 9 2.3 Introduction to the 2013 review ....................................................................................... 10 2.4 Integrity of information .................................................................................................... 11 2.4.1 Analysis Methodology ....................................................................................................... 11 2.5 Overall Findings ................................................................................................................. 12 2.5.1 Black Ownership: .............................................................................................................. 13 2.5.2 Management Control: ....................................................................................................... 15 2.5.3 Employment Equity ..........................................................................................................
    [Show full text]
  • OT Infrastructure & Cybersecurity Absa Compliance
    Company Name Job Title ABB Snr Proposals Engineer Global Manager: OT Infrastructure & ABInBev Cybersecurity Absa Compliance Officer absa security governance Absa Lead Support Engineer Absa Cyber Security Analyst Absa Group Limited Business Analyst Accenture Senior Manager Acelma Company Limited Cybersecurity Consultant Africa Health Research Institute CTO Africa technovations Sap consultant AfricanNova CEO AGRICOLLEGES international IT and Tech Manager AGSA Senior Manager Allan Gray Manager Aspen Holdings IT Service Operations Manager Aspen Pharmacare GMP Compliance Officer ATNS Security Specialist Auditor General SA IT Security Governance Manager Bain & Company Driver Bank of Namibia Senior IT Security Specialist Bayportfinance Infosec BCX Senior Enterprise Architecture BCX SOX Analyst BCX Sox Analyst Bettr cto Beyondtrust Regional Sales Manager Bitcrack Cyber Security Stakeholder Engagement Manager Bitventure CEO Bitventure Marketing Manager BPESA Head of Stakeholder Engagement Cape Peninsula University of Technology Student CentreBlue Director Cerberus Consulting Managing Director Charlotte Maxeke Data Technologist CHECK POINT Telco SADC Sales Cipla Research Clientele Life IT Audit and Assurance Manager Collaborative Networks Data Center & Special Projects Manager Comcorp Online CIO CryptIT Information Security Specialist Cyberhound (Pty) Ltd CEO CYSECH Botswana Student Datategra Security Engineer Dimension Data Information Security Manager Dimension Data Botswana Network Engineer Executive for identity and access Dimensiondata management
    [Show full text]
  • ABSA GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration Number: 1986/003934/06) JSE Share Code: ASA ISIN: ZAE000067237 (“Absa Group”)
    ABSA GROUP LIMITED (Incorporated in the Republic of South Africa) (Registration number: 1986/003934/06) JSE share code: ASA ISIN: ZAE000067237 (“Absa Group”) RESULTS OF GENERAL MEETING OF SHAREHOLDERS - THE PROPOSED STRATEGIC COMBINATION OF BARCLAYS AFRICAN OPERATIONS WITH ABSA GROUP LIMITED (“THE PROPOSED TRANSACTION”) AND THE PROPOSED CHANGE OF NAME OF “ABSA GROUP LIMITED” TO “BARCLAYS AFRICA GROUP LIMITED” 1. Introduction Shareholders are referred to the announcement released on SENS dated 6 December 2012 and the circular to shareholders dated 14 December 2012 (“the Circular”), which provide details on the Proposed Transaction. 2. Results of the general meeting Shareholders are advised that at the general meeting of Absa Group’s shareholders (“Shareholders”) held on Monday, 25 February 2013 ("General Meeting"), all of the ordinary and special resolutions proposed at the General Meeting were approved by the requisite majorities of Shareholders. These resolutions included an ordinary resolution to seek approval for the Proposed Transaction and special resolutions for the approval of the name change of “Absa Group Limited” to “Barclays Africa Group Limited” and for the authority to allot and issue Absa Group shares to Barclays Bank PLC (or its wholly-owned subsidiary, Barclays Africa Group Holdings Limited, and the Horizon Trust) in respect of the Proposed Transaction. Votes in favour (%) Result Ordinary resolution Resolution to approve the Proposed Transaction* 96 Passed Special resolutions Special resolution to approve the change of name 99 Passed Special resolution to approve the allotment and issue of shares 98 Passed Ordinary resolution Resolution to grant authority to give effect and implement all the resolutions 99 Passed Note*: For purposes of the JSE Listings Requirements, the votes of Barclays Bank PLC and its associates are excluded.
    [Show full text]
  • A Vector Error Correction Model of the South African Banks Stock Prices by Sophie Kasse-Kengne1 and Stephen Hosking
    A Vector Error Correction Model of the South African Banks Stock Prices By Sophie Kasse-Kengne1 and Stephen Hosking Faculty of Business and Management Sciences Cape Peninsula University of Technology, Cape Town This version: August 2019 Abstract This paper investigates the long-run equilibrium relationships between selected economic fundamentals and banks’ stock prices in South Africa between 2010 and 2018. It further evaluates the predictive power of these stock prices on the economic growth. Johansen co-integration tests, vector error correction models and granger causality tests were utilised. The findings revealed that in the long run, each bank’s stock price is co-integrated with two macroeconomic indicators. Industrial production has a long run positive effect on all the banks’ stock price, except one where the impact is negative. Exchange rate also has an ambivalent outcome. However, M2 and export constantly exhibited a long run but a negative effect. Furthermore, there is no dynamic co-movements between banks stock prices themselves, suggesting greater diversification despite these banks’ monopoly position. Finally, South African Banks Index has a co-integrating relationship with industrial production and exchange rate. While the index does not as a stand-alone unidirectionally cause the two variables, it jointly with industrial production granger causes exchange rate, implying an effective but weak predictive power. In a short run, only industrial production has a statistically significant positive or negative relationship with banks’ stock prices, corroborating its equivocal effect. Money supply, exchange rate and export have no significant explanatory influence. Key words: Banks stock prices; Johansen Co-integration; Vector Error correction; Impulse response function; Granger causality; South Africa.
    [Show full text]
  • The Status of Agricultural and Rural Finance in South Africa
    The Status of Agricultural and Rural Finance in South Africa March 2013 FinMark Trust Prepared by Mike de Klerk, Frances Fraser and Ken Fullerton 1 The Status of Agricultural and Rural Finance in South Africa 1. Executive summary .................................................................................................................... 7 2. Background .............................................................................................................................. 13 3. Introduction ............................................................................................................................. 14 3.1 Objectives, ambit, methodology ........................................................................................ 15 3.2 The structure of the market for agricultural and rural financial services .......................... 16 4. The demand for agricultural and rural financial services ........................................................ 18 4.1 Historical context and its present-day impact ................................................................... 18 4.2 Major client categories ...................................................................................................... 20 4.3 Typology of demand for financial services ........................................................................ 20 4.4 Analysis of effective demand ............................................................................................. 22 4.5 Summary ...........................................................................................................................
    [Show full text]
  • ABSA GROUP LIMITED (Formerly Known As Barclays Africa Group Limited) (Incorporated with Limited Liability in South Africa Under
    ABSA GROUP LIMITED (formerly known as Barclays Africa Group Limited) (Incorporated with limited liability in South Africa under registration number 1986/003934/06) Bond Issuer Code: ABGI (“ABSA Group” or “ABGI”) ABSA BANK LIMITED (Incorporated with limited liability in South Africa under registration number 1986/004794/06) Bond Issuer Code: BIABS ("“Absa”) TRADING STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2020 In accordance with section 3.4(b) of the JSE Listings Requirements, and updating Absa Group’s trading statement published on 19 November 2020, shareholders are advised that there is more certainty regarding our financial results for the year ended 31 December 2020 and we are able to provide a narrower earnings range. Moreover, the trends set out in our previous trading statement remain relevant. Absa Group’s IFRS headline earnings per share (HEPS) and earnings per share for the year ended 31 December 2020 are expected to decline by 55% to 60% from the 2019 comparatives of 1750.1 cents and 1717.6 cents, respectively. Normalised HEPS for the period is expected to decrease by 50% to 55% from the 1926.0 cents in 2019. The Group expects to release its financial results for the year ended 31 December 2020 on 15 March 2021. Johannesburg 19 February 2021 Enquiries: Alan Hartdegen (+27 72) 576-2713 E-mail: [email protected] Editor’s Note: Normalised reporting Given the process of separating from Barclays PLC, Absa Group continues to report IFRS- compliant financial results and a normalised view. The latter adjusts for the consequences of the separation and better reflects its underlying performance.
    [Show full text]
  • Absa Africa Financial Markets Index 2020
    Absa Africa Financial Markets Index 2020 Africa’s possibility is in the detail Pictured: The iridescent feathers of the African peafowl Absa Africa Financial Markets Index 2020 | 1 The Absa Africa Financial Markets Index Absa Group Limited (‘Absa Group’) is listed on the Johannesburg Stock was produced by OMFIF in association Exchange and is one of Africa’s largest diversified financial services groups. with Absa Group Limited. The scores on p.7 and elsewhere record the Absa Group offers an integrated set of products and services across total result (max=100) of assessments personal and business banking, corporate and investment banking, wealth across Pillars 1-6. For methodology, and investment management and insurance. see individual Pillar assessments and Absa Group has a presence in 12 countries in Africa, with approximately p.38-39. 42,000 employees. OMFIF conducted extensive The Group’s registered head office is in Johannesburg, South Africa, and quantitative research and data analysis. it owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Qualitative survey data were collected Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and and analysed by OMFIF. National Bank of Commerce), Uganda and Zambia. The Group also has representative offices in Namibia and Nigeria, as well as insurance operations © 2020 The Absa Group Limited and in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia. OMFIF Ltd. All Rights Reserved. For further information about Absa Group Limited, please visit www.absa.africa Absa Marketing and Events team The Official Monetary and Financial Institutions Forum is an independent think tank for central banking, economic policy and public investment – a Fiona Kigen, Vice-President, Marketing: non-lobbying network for best practice in worldwide public-private sector Investment Banking, Erica Bopape, Head of Marketing: Investment Banking, exchanges.
    [Show full text]
  • Investec Year-End Results Booklet 2021
    01 Strategic focus Investec year-end results booklet 2021 CONTENTS Strategic focus Who we are 2 Our business at a glance 6 Our strategic objectives 10 Our business model 11 Our credit ratings 12 Overview of results 2021 financial year-end results commentary 14 01 Presentation of financial information 24 Salient features 25 Exchange rate impact on results 26 Condensed combined consolidated income statement 27 Combined consolidated statement of total comprehensive income 28 Condensed combined consolidated balance sheet 29 Consolidated statement of changes in equity 30 Condensed combined consolidated cash flow statement 34 Earnings per share 35 Segmental income statements and balance sheets 38 Financial review Performance in review 47 02 Net interest income 50 Non-interest revenue 52 Total funds under management 53 Expected credit loss impairment charges 56 Operating costs 57 Segmental adjusted operating profit 59 Number of employees 61 Net asset value per share 63 Return on risk-weighted assets 63 Return on equity 64 Discontinued operations 68 Restatements 69 Divisional review Divisional key income drivers 72 03 UK and Other 74 Southern Africa 86 Risk disclosures Risk management 99 04 Capital management and allocation 111 Additional information Fair value disclosure 117 05 Shareholder analysis 125 Annexures Alternative performance measures 131 06 Definitions 133 Glossary 134 Dividend announcements 135 Corporate information 141 1 01 Strategic focus Investec year-end results booklet 2021 WHO WE ARE “May you live in interesting times,” goes the traditional curse. The “interesting times” of the past year go far beyond the experience of most of us. At Investec we’ve responded as only we know how: with our clients’ needs first and foremost in our mind.
    [Show full text]
  • South African Peer Bank Analysis - H1:21 an EY Banking & Capital Markets Benchmark Report (Summarised) August 2021 Executive Summary Banks Benchmark Report 2021
    South African Peer Bank Analysis - H1:21 An EY Banking & Capital Markets Benchmark Report (summarised) August 2021 Executive summary Banks benchmark report 2021 While we have learned much about COVID-19 and its according to the SA Property Owners Association and has implications, the situation continues to evolve, and led to downward revisions to the economic outlook for the heightened uncertainty remains. Countries that were year. Over and above this, trade has been affected by the thought to be over the worst are seeing rising COVID-19 recent cyber-attack at Transnet at the end of July. cases - such as China, Israel and the United States. South Africa, which has been emerging from the worst recession The developing international and local events underline in a century in 2020, continues to battle the third wave with the continued importance of considering economic risk. future waves of the pandemic likely. Although it is difficult to know the future unknowns, or accurately quantify their effects, having considered the In addition, poor economic conditions, worsened by the possible impacts is better than being completely caught pandemic and a delicate political situation, resulted in the unaware. riots in July which caused R50bn in property damages, Strategic themes noted in H1:21 Challenging and volatile macroeconomic environment Weak GDP growth, COVID-19 third wave, low demand, low consumer confidence and electricity supply Key focus disruptions created Recent South on strategy uncertain economy African civil unrest outlook Customer
    [Show full text]
  • Absa Group Limited Shareholder Report 2008 Reportshareholder Limited Group Absa Limited
    Absa Group Absa Group Limited shareholder report 2008 Limited Shareholder report For the year ended 31 December 2008 Contents Introduction 1 Absa in 2008 2 Salient features 4 Share performance 5 Group structure Commentary 8 Chairperson’s statement 11 Group Chief Executive’s review 17 Financial analysis Corporate governance 36 Corporate governance statement 54 Compliance report 58 Group remuneration report 74 The Group board 86 The Group Executive Committee Financial statements 94 Directors’ approval 95 Company Secretary’s certificate to the members of Absa Group Limited 95 Independent auditors’ report to the members of Absa Group Llimited 96 Directors’ report 104 Absa Group Limited and its subsidiaries 287 Absa Group Limited Shareholder and administrative information 300 Shareholders’ information 302 Administration 306 Glossary ibc Other contact information Note Information pertaining to the annual general meeting can be found in a separate document enclosed with this shareholder report. Absa in 2008 Our business Since it was established early in 1991, the Absa Group has grown its asset base almost tenfold to R773,8 billion at 31 December 2008. As a large financial services group in southern Africa, Absa remains at the forefront of the retail banking industry, with over 10 million customers. In keeping with its strategy of diversification through Absa Corporate and Business Bank (ACBB) and Absa Capital, the Group also provides services to the corporate, commercial and investment markets in South Africa and in selected markets on the African continent. Absa has established itself as a leading corporate citizen in South Africa, addressing the needs of all its stakeholders, with the objective of being relevant to the needs and challenges of our country.
    [Show full text]