African Bank has recorded a profit for the financial year ended September 2023 – rescuing itself from a challenging start to the year. <\/p>\n\n\n\n
Over the financial year, the group said that it saw a successful acquisition and integration of Grindrod Bank and Ubank assets, liabilities and operations. <\/p>\n\n\n\n
With the more extensive operations, the group is now servicing 4 million active customers across its platforms, a massive 158% increase (FY22: 1.5 million).<\/p>\n\n\n\n
Over the period, the net advances book grew by 41% to R32.0 billion (FY22: R22.6 billion), with secured business banking loans totalling over one-third of the group’s loans. <\/p>\n\n\n\n
The funding base has also been diversified, with business and retail deposits making up 87% (FY22: 76%) of the total funding of R34.6 billion (FY22: R16.6 billion).<\/p>\n\n\n\n
Despite the two acquisitions, the group said that it has sufficient liquidity and cash reserves totalling R9.9 billion (FY22: R2.8 billion). <\/p>\n\n\n\n
With the larger balance sheet, the group saw its interest income on the advances book grow by 30% to R7.3 billion (FY22: R5.7 billion), with a net interest margin of 11.0% (FY22: 14.0%). <\/p>\n\n\n\n
Diversification also saw the cost of funding reduced to 7.3% (FY22: 7.7%), notwithstanding the 200 basis points increase in the repo rate over the same period. <\/p>\n\n\n\n
Non-interest income also grew by 144% to R1.6 billion (FY22: R0.7 billion) as more customers transacted on their MyWORLD and Credit Card accounts and purchased other value-added services. <\/p>\n\n\n\n