Absa loses market share. Eyeing Ethiopia, a market of 100 million people
Absa’s headline earnings fell 1% in the year ending on 31 December 2018, when including the R3.2 billion cost of separating from Barclays.
It announced a final dividend of R11.10 a share, which is 4% more than in 2017.
Headline earning per share (also when taking the cost of separating from Barclays into account) fell to 1,703.7 cents from 1,724.5 cents the year before.
Costs rose 8% and return on equity fell 13.4%.
Absa’s retail offering - which has lost market share over the past few years - contributes more than 50% of its revenue.
The bank’s business outside of South Africa grew its earnings by 9%.
Absa has its eye on Ethiopia, a market of 100 million people where the reformist Prime Minister Abiy Ahmed may soon open the banking sector up to foreign ownership.
Listen to the interview in the audio below (and scroll down for quotes from it).
…We’re very focussed…Jason Quinn, Financial Director - Absa
…green shoots, momentum building in our lending book…Jason Quinn, Financial Director - Absa
…The separation was an inflexion point for our company… The separation is progressing well… They are shareholders, at 15%... They can’t sell down much further…Jason Quinn, Financial Director - Absa
We did caution with respect to the first half of this year… a little bit cautious about the outlook for the South African economy…Jason Quinn, Financial Director - Absa
Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:
This article first appeared on 702 : Absa loses market share. Eyeing Ethiopia, a market of 100 million people
Dodgy tenants who don’t pay – a perennial headache for landlords. Kieno Kammies interviews credit bureau TPN’s Michelle Dickens.Read More
Despite the huge expense, few medical aids cover members in full when they're hospitalised, leaving them with massive shortfalls.Read More
SAA has released the lists of flights affected by a "consolidation process" which has led to an amended flight schedule.Read More
A trove of 715 000 files prove that Isabel dos Santos syphoned a breathtaking fortune into offshore accounts, says the ICIJ.Read More
If Jeff Bezos and Bernard Arnault – the world’s two richest men – sat on their wealth piled up in $100 bills, they’d be in space!Read More
Flight Centre SA has issued an advisory informing clients that SAA has cancelled several domestic and international flights.Read More
Software superpower Microsoft announces various plans to cut its own carbon emissions by more than half over the next 10 years.Read More
Macfarlane Moleli tells The Money Show how he structures his life and sets goals.Read More
The pick of the day's crop as chosen by Caroline Cremen, Portfolio Manager, Adviceworx.Read More
“ Government must ensure that state-owned entities have boards with the right mix of skills to fulfil their mandates."Read More