Absa's annual profit jumps on lower credit impairments

Source: Reuters.

The lender, with a presence across 16 countries including Ghana, Kenya, Zambia, the UK and the United States, posted headline earnings per share of R26.62 for the year ended on 31 December.

Revenue climbed 5% to R109.9bn ($6bn), as net interest income - the difference between the amount banks earn from loans and pay on deposits - rose 4% to R71bn, supported by loan growth of 7% and deposit growth of 12%.

Non-interest income increased by 6%.

Credit impairment charges fell 8% to R14.3bn, as customers in its retail business in South Africa benefited from rate cuts and collection initiatives.

Absa also declared a final dividend of 775 cents per share.