ABSA Reported Positive Financial Results but Is not Adding New Customers

Absa Banking Group reported a strong headline earnings across its retail and business banking services.

According to Moneyweb the banking giant is not adding new customers when compared to the lockdown-impacted first half of 2020.

The financial publication Moneyweb reports, customer numbers are 2% lower than a year ago, but the group says these have “remained stable at the December 2020 level of 9.5 million”. It says “the attrition witnessed in the second half of 2020, specifically in the entry level banking segment, was stemmed”.

It says excluding provisions, profit contracted by 14% when compared to the first half of 2020. This “was driven by the impact of excess mortality claims, customer-centric fee decisions and increased costs related to incentives and restructuring costs”, report Moneyweb.

READ MORE: Absa Bank CEO Daniel Mminele Leaves the Bank due to Differences with the Board

A more realistic comparison would be to the first half of 2019. Compared to that, earnings are 16% lower. The bank only provides selective comparisons to 2019 in its results.

Earlier this year Absa Bank former CEO Daniel Mminele left the Bank due to differences with the Board.


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