Absa loses market share. Eyeing Ethiopia, a market of 100 million people

The Absa logo. Picture: Supplied

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.

The Money Show’s Bruce Whitfield interviewed Jason Quinn, Financial Director at Absa.

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:

Subscribe to our Business Wrap Newsletter


This article first appeared on 702 : Absa loses market share. Eyeing Ethiopia, a market of 100 million people


Recommended

by NEWSROOM AI
Read More
Nedbank is taking customers from other banks

Nedbank is taking customers from other banks

It has 7% more customers than a year ago, growing its market share to 13.1%. Bruce Whitfield talks to Nedbank's CEO, Mike Brown.

Markets cheer as Maria Ramos unexpectedly retires as Absa Group CEO

Markets cheer as Maria Ramos unexpectedly retires as Absa Group CEO

Wendy Lucas-Bull (Absa Group Chair) and Pippa Green ("Choice Not Fate: The Life and Times of Trevor Manuel") on her retirement.

Nando’s burns 'African-nasti' Absa with hilariously cheeky new advertisement

Nando’s burns 'African-nasti' Absa with hilariously cheeky new advertisement

Branding and advertising expert Andy Rice loves Nando’s burn of Absa in its funny and more than a little mischievous new ad.

What does Absa and Black Panther have in common?

What does Absa and Black Panther have in common?

Africanacity! That’s what. Or so it wants us to believe. Bruce Whitfield interviews Gibs marketing expert Professor Nicola Kleyn.

Absa Chairperson Wendy Lucas-Bull opens up about money

Absa Chairperson Wendy Lucas-Bull opens up about money

Bruce Whitfield interviews Lucas-Bull about her attitude to money (hopes and fears, successes and failures, etc.)

Popular articles
Rob Packham found guilty of wife's murder

Rob Packham found guilty of wife's murder

The Constantia businessman was arrested over the death of his wife, Gill, in February 2018.

Huawei users in SA told not to panic over Android ban

Huawei users in SA told not to panic over Android ban

Google is suspending its business relationship with Chinese smartphone manufacturer.

ANC national executive committee finalising top jobs list for Parliament

ANC national executive committee finalising top jobs list for Parliament

Former National Council of Provinces chairperson Thandi Modise is expected to be the next speaker of the National Assembly.

'History of contempt and pity runs through 100 years of research at SU'

'History of contempt and pity runs through 100 years of research at SU'

Stellenbosch University's Professor Jonathan Jansen describes universities' research history of racial tropes over past 100 years.

'It is very clear that Ramaphosa is under attack from Magashule and others'

'It is very clear that Ramaphosa is under attack from Magashule and others'

News24 editor-in-chief Adriaan Basson says there is a definite fight back from the ANC secretary-general against the president.

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

Schwarzenegger urges public not to give Sandton 'fan' the attention he craves

A video of a young man kicking actor and former US governor Arnold Schwarzenegger in the back on Saturday in Joburg went viral.