Graphic Business News

Absa Group backs localisation of Absa Ghana

By: Maclean Kwofi
Category:
Mr Daniel Mminele

The Group Chief Executive Officer (CEO) of Absa Group Limited, Mr Daniel Mminele, has expressed the preparedness of the Group to back a decision by Absa Ghana Limited to list on the local bourse.

Although definitive decision had not been made yet, the CEO observed that his office had been made aware of an ongoing discussions on plans to list on the Ghana Stock Exchange (GSE) as part of measures to localise the bank in the country.

“We are aware of discussions around localisation of the bank but that will form part of our strategy going forward because we are only thinking about it and have not made any definitive decision yet.

“And so, we are certainly aware and appreciate the need for the localisation of the bank and looking forward to seeing how best that can be implemented at the right time,” Mr Mminele said during a media interaction via telephone on March 11 in Johannesburg, South Africa.



The interaction was to release the Group’s 2019 full year financial results.   

Transition    

Absa Group Limited is the parent company of Absa Ghana and it is listed on the Johannesburg Stock Exchange in South Africa.

The publication of Absa Group’s results comes barely a month after the completion of Absa Bank Ghana brand transition.

With this, the bank has begun a new journey which is one of striving to be customer obsessed, acknowledging the strength of its people and delivering results sustainably.

Profitability

The Group CEO who had the opportunity to attend Absa Ghana’s launch on February 10, this year, said he had the opportunity to observe at first hand the vibrancy and commitment of his colleagues in Ghana during the visit and for this reason would provide the necessary support to make its operations in Ghana profitable.

“As part of launching the Absa brand, I also had an opportunity to get a sense of operations in two of our largest markets outside South Africa – Ghana and Kenya, and I visited a number of our branches in South Africa and Ghana.

“My impressions of the organisation are starting to take shape, giving me an appreciation of the key drivers of the business, and where our opportunities and challenges lie.

“My sense is that Absa has great potential based on its product range, from universal banking to bancassurance, with solid businesses, a substantial customer base, and backed by both a strong, refreshed brand and talented, committed people,” he said.

Full year performance

On its 2019 full year performance, Mr Mminele said the Group had recorded an improved revenue growth for the 2019 financial year, with headline earnings growing slightly.

“We delivered a resilient performance against a challenging macroeconomic backdrop. We maintained balance sheet momentum and growth was broad-based across most businesses,” he said.

The Group Financial Director, Mr Jason Quinn, indicated that Absa Group revenue increased six per cent while headline earnings, the measure most analysts use to gauge profit, rose per cent as impairments increased.

“Our revenue growth is showing an improving trend, with strong deposit growth of 12 per cent and customer loan growth of nine per cent for the Group.

“Overall, Absa’s balance sheet, revenue and earnings growth were in line with peers after lagging for a number of years,” he added.