Absa loses market share. Eyeing Ethiopia, a market of 100 million people

The Absa logo. Picture: Supplied

Absa’s headline earnings fell 1% in the year ending on 31 December 2018, when including the R3.2 billion cost of separating from Barclays.

It announced a final dividend of R11.10 a share, which is 4% more than in 2017.

Headline earning per share (also when taking the cost of separating from Barclays into account) fell to 1,703.7 cents from 1,724.5 cents the year before.

Costs rose 8% and return on equity fell 13.4%.

Absa’s retail offering - which has lost market share over the past few years - contributes more than 50% of its revenue.

The bank’s business outside of South Africa grew its earnings by 9%.

Absa has its eye on Ethiopia, a market of 100 million people where the reformist Prime Minister Abiy Ahmed may soon open the banking sector up to foreign ownership.

The Money Show’s Bruce Whitfield interviewed Jason Quinn, Financial Director at Absa.

Listen to the interview in the audio below (and scroll down for quotes from it).

…We’re very focussed…

Jason Quinn, Financial Director - Absa

…green shoots, momentum building in our lending book…

Jason Quinn, Financial Director - Absa

…The separation was an inflexion point for our company… The separation is progressing well… They are shareholders, at 15%... They can’t sell down much further…

Jason Quinn, Financial Director - Absa

We did caution with respect to the first half of this year… a little bit cautious about the outlook for the South African economy…

Jason Quinn, Financial Director - Absa

Get the 10 most-read articles of the week from Bruce Whitfield’s The Money Show, emailed to you every Friday morning:

Subscribe to our Business Wrap Newsletter


Recommended

by NEWSROOM AI
Read More
Nedbank is taking customers from other banks

Nedbank is taking customers from other banks

It has 7% more customers than a year ago, growing its market share to 13.1%. Bruce Whitfield talks to Nedbank's CEO, Mike Brown.

Markets cheer as Maria Ramos unexpectedly retires as Absa Group CEO

Markets cheer as Maria Ramos unexpectedly retires as Absa Group CEO

Wendy Lucas-Bull (Absa Group Chair) and Pippa Green ("Choice Not Fate: The Life and Times of Trevor Manuel") on her retirement.

Nando’s burns 'African-nasti' Absa with hilariously cheeky new advertisement

Nando’s burns 'African-nasti' Absa with hilariously cheeky new advertisement

Branding and advertising expert Andy Rice loves Nando’s burn of Absa in its funny and more than a little mischievous new ad.

What does Absa and Black Panther have in common?

What does Absa and Black Panther have in common?

Africanacity! That’s what. Or so it wants us to believe. Bruce Whitfield interviews Gibs marketing expert Professor Nicola Kleyn.

Absa Chairperson Wendy Lucas-Bull opens up about money

Absa Chairperson Wendy Lucas-Bull opens up about money

Bruce Whitfield interviews Lucas-Bull about her attitude to money (hopes and fears, successes and failures, etc.)

Popular articles
'The criminals in the ANC will gang up on Cyril Ramaphosa'

'The criminals in the ANC will gang up on Cyril Ramaphosa'

Political analyst Prince Mashele and Richard Calland dissect the political landscape as 6th democratic Parliament in SA begins.

'Reason for Mabuza's swearing-in postponement is BS' says Eusebius

'Reason for Mabuza's swearing-in postponement is BS' says Eusebius

He believes these things are about power, horsetrading, and skeletons that these people know they have.

'Nemeth meddled with evidence, changed witness testimonies' says Jimmy's sister

'Nemeth meddled with evidence, changed witness testimonies' says Jimmy's sister

The family of the deceased wants the former Ford SA CEO Jeff Nemeth to return and provide answers as to what happened.

Deputy president David Mabuza postpones swearing-in as MP

Deputy president David Mabuza postpones swearing-in as MP

Mabuza has made the request to wait for the outcome of an integrity commission report before becoming an ANC MP.

Dis-Chem drives ad expert to 'Steve Hofmeyr-like assaults' on his decoder

Dis-Chem drives ad expert to 'Steve Hofmeyr-like assaults' on his decoder

"It’s been said you can’t bore people into buying your brand. Someone should’ve pointed this out to Dis-Chem," says Andy Rice.

Bone-dry Makhanda (Grahamstown) is falling apart

Bone-dry Makhanda (Grahamstown) is falling apart

What is going on in bone-dry Makhanda (Grahamstown)? Bruce Whitfield interviews Jacko Maree (St Andrew's College).

Brilliant graduate gets 50% scholarship to study in France. Can you help?

Brilliant graduate gets 50% scholarship to study in France. Can you help?

Paris-Sorbonne University accepted Khumo Mampuru into its master’s in quantitative economics course, but he’s €12 000 short.

'BEE has closed many avenues for skilled people'

'BEE has closed many avenues for skilled people'

Africa Melane speaks to EOSA's Johannes Wessels about why so many highly skilled South Africans are taking their talents overseas.