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May 25 2012 13:58
The costs of the first phase of the Gauteng Freeway Improvement Project have increased significantly to almost R90bn, according to a report.
May 24 2012 17:31
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May 25 2012 11:36
The JSE has identified and stopped "incorrect" trades from one of its members, and will reverse the trades and lower the session's total value after the close.
Johannesburg - Absa, South Africa's largest retail banking group, said 'commercial delinquencies' would rise for up to 18 months even though bad debts in the retail market had slowed.
"We are still expecting commercial impairments to reach well into 2010," said Jacques Schindehutte, Absa's financial director. "On the retail side we believe we are nearing the peak of retail impairments," he said.
Schindehutte was commenting during a presentation of Absa's interim results on Monday in which it posted a 19.4% decline in headline share earnings to 564.4 cents.
The group's impairment charge increased by 122% to R4.8bn. Retail bank and commercial bank impairments increased by 110% to R4.2bn and by 198% to R524m.
Absa continued to pay dividends, however, announcing an interim dividend of 225c/share.
Commenting on the interim results, Absa CEO Maria Ramos said: "The group's results reflect the challenging macroeconomic environment.
"Rising impairments, margin contraction and a reduction in the value of investment portfolios have impacted the group's performance.
"Absa, however, remains profitable and well capitalised."
The retail arm of Absa's business recorded a 30.9% decline in earnings while Absa Capital and Absa Wealth - the investment banking arm of the group - posted a steep decline in earnings to R129m. The investment banking operation contributed R2.2bn in operating profit.
Another feature of the interim results was a write-down in investments relating to Single Stock Futures (SSFs) which Absa took on following a default at broker Cortex Securities.
Absa absorbed a R1bn impairment against the SSF positions of which it took delivery through JSE-listed companies Pinnacle Point Group, Blue Financial Services, Sekunjalo and ConvergeNet.
The majority of the impairment was, however, in its Pinnacle Point position where Absa chose to write-down the full carrying value of its stake (around R900m). Pinnacle Point, a property development enterprise, is currently undergoing a recapitalisation.
- Fin24.com