African Bank expects to return to profitability in FY23

African Bank, under the leadership of CEO Kennedy Bungane, has made significant strides in diversifying its operations and transforming into a fully-fledged financial services organization. The bank has experienced a remarkable growth in profits, driven by strategic acquisitions, expansion into new markets, and a focus on tightening its operations. Kennedy Bungane attributes the bank's success to various levers that have enabled it to report a 47% increase in operating profit before impairments. The bank's balance sheet has seen a substantial growth, with net advances increasing from 19 billion to 32 billion in just six months. Funding has grown to 34 billion from 15 billion, capital position has strengthened, and liquidity has almost doubled to 8.6 billion. These numbers represent a transformation in the bank's core operations and mark a significant shift towards a more diversified revenue stream. Despite facing challenges such as high inflation and load shedding, African Bank remains confident in its ability to meet its profit goals for the financial year ending in 2023. The bank has taken proactive measures to protect itself in a tough economic environment by increasing its coverage ratio and tightening its credit scorecard for retail unsecured lending. Additionally, the acquisitions of U Bank and Kindle Bank have allowed African Bank to diversify its revenue streams and de-risk its balance sheet. A key focus for African Bank moving forward is the digitization of its operations to enhance customer experiences and drive growth. The bank has successfully digitized its end-to-end customer journeys and launched the MyWealth transactional banking account, leading to a significant increase in transactional account usage and banking volumes. By leveraging AI and embracing the fourth industrial revolution, African Bank is positioning itself as a leader in the digital banking space. By forging partnerships with fintech service providers, value-added service providers, non-bank financial institutions, and telecoms, African Bank has been able to attract a large customer base onto its banking platform. The bank's strategic alliances with companies like MTM, Lysaka, and ShopRite have contributed to a 180% growth in its customer base, reaching 4.2 million active customers on its platforms. Kennedy Bungane's vision for African Bank is clear - to become not just a bank, but a comprehensive financial services provider and a trusted partner for customers and alliance partners alike. With a focus on innovation, digitization, and strategic growth, African Bank is on track to achieve its long-term goals and deliver sustainable profitability in the years to come.