South African lender Absa Group posted a marginal rise in annual profit on Monday, as a boost from pre-provision growth was offset by higher credit impairments.
But inflationary pressures, high interest rates, regular power blackouts and logistical bottlenecks are taking a toll on these banks’ most sensitive retail and small business customers, leading to defaults.
The lender posted headline earnings of R20.9 billion ($1.11 billion) for the year ended December 31, up 1% compared to the corresponding period a year earlier.
Revenue climbed 8% to R104.5 billion, while pre-provision profit rose by 6% to R50.1 billion.
Credit impairments rose by 13% to R15.5 billion, as impairments in the secured lending businesses surged, especially in South Africa, Absa’s largest market by revenue.
Absa declared a dividend of R13.70 per share, up 5%. – Reuters
