African Bank on Tuesday reported a 42% increase to R715 million in net profit before tax and foreign exchange losses for the six months ended March 31, from R501 million in the same period last year.
The bank said the rise was primarily due to a lower credit impairment charge as a result of a generally lower credit risk appetite and better collections, an increase in insurance profit and lower net interest charge due to debt buy backs.
African Bank also increased its new loan and card business by nine percent to R4.7 billion, up from R4.4 billion last year, as it continued to focus on lower risk customers, disbursing over 80% of all advances to this group.
Group chief executive Basani Maluleke said the bank had made good progress on its strategy to right-size and modernise the branch network and digitise the business. Cash reserves, including surplus liquid assets, amounted to R8.6 billion as at March 31.
“The growth in both our lending and retail deposit books, coupled with the launch of our ‘My World’ transactional banking product to our staff are strong indicators of the execution of our strategy,” Maluleke said.