African Bank Group net advances book grew by 41%
African Bank reported a 41 per cent jump in net advances to R32 billion in the year to September to a much larger client base composed of retail and business customers following its acquisition of Grindrod and Ubank. Profit for the period, however dropped 31.3 per cent to R505 million as credit impairments more than doubled with customers struggling to cope in the tough economic environment. Joining CNBC Africa for more is Kennedy Bungane, CEO African Bank.
Tue, 21 Nov 2023 11:44:12 GMT
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AI Generated Summary
- The bank's net advances increased by 41 per cent to R32 billion following acquisitions, but profit dropped due to rising credit impairments.
- The tough economic environment impacted customer repayments, leading to a significant rise in credit impairments in the first half of the year.
- African Bank focused on diversifying revenue streams, serving SMEs, and planning for an IPO by 2025 to drive future growth.
African Bank Group has reported a 41 per cent increase in net advances to R32 billion in the year to September, showcasing a significant growth in its client base after the acquisition of Grindrod and Ubank. Despite this positive growth, the bank experienced a 31.3 per cent drop in profit to R505 million due to a more than doubling of credit impairments. The tough economic environment has led to many customers struggling to meet their financial obligations. Kennedy Bungane, CEO of African Bank, shared insights on the bank's performance, strategies to tackle bad debts, and plans for the future in a recent CNBC Africa interview. The key points discussed in the interview include the impact of economic conditions on customer segments, improvements in credit losses in the second half of the year, and the bank's focus on diversifying revenue streams. Bungane highlighted the successful acquisition of Ubank and the growth opportunities presented by serving SMEs with financial services. The bank is also working towards an IPO by 2025 as part of its long-term strategy.
