Absa Group Reports 10% Profit Increase Driven by Lower Impairments

Absa Group reported a 10% increase in annual profit for 2024, driven by improved performance in the second half of the year and a reduction in retail credit impairments. The lender's headline earnings per share reached 26.62 rand, with total revenue climbing 5% to 109.9 billion rand, supported by loan and deposit growth. A final dividend of 775 cents per share was declared, reflecting the bank's commitment to enhancing shareholder value amid a recovering South African economy. Enhanced risk management practices contributed to an 8% decline in credit impairment charges, signaling improved customer financial health. Despite being below its medium-term return on equity target, Absa is on a visible path toward achieving its 16% RoE goal by 2026. The financial results underscore Absa's strategic initiatives and robust operations within a competitive market landscape.