Absa H1 revenue up 14% to R46.9bn

Absa Group, a leading financial services organization, reported a robust performance in the first half of the year with a 14% increase in revenue to R46.9 billion and a 27% rise in headline earnings to R11 billion. In an exclusive interview with CNBC Africa, Jason Quinn, Absa Group Financial Director, provided insights into the factors driving the company's performance and its growth strategy moving forward. Quinn highlighted the considerations behind the decision to more than double dividends in the current period, emphasizing the importance of capital levels, growth prospects, and operational efficiency in determining dividend payouts. While acknowledging the potential impact of the COVID-19 pandemic on the economy, Quinn defended the company's cautious approach to capital management, citing the need to maintain adequate reserves for credit risk and uncertainties in the macroeconomic environment. He also discussed the key drivers of growth for Absa, including continued focus on execution and strategic initiatives in various business segments. Quinn revealed that the company plans to deploy its excess cash towards funding customer loans, particularly in areas such as mortgages, vehicle finance, and renewable energy projects. Speaking about Absa's commitment to renewable energy, Quinn highlighted the company's significant investments in renewable power projects and its partnership with African Rainbow to support the country's energy transition. He also addressed concerns about inflationary pressures and credit impairments, assuring stakeholders of Absa's proactive measures to navigate the challenging economic landscape. Quinn concluded the interview by sharing insights into the bank's digitization plans, emphasizing the importance of ongoing investments in digital platforms to enhance customer experience and operational efficiency. With a strong performance in both South Africa and the rest of Africa, Absa remains optimistic about its growth prospects and continued investments in key markets across the continent.