Africa (Commonwealth Union) _African Bank has achieved a remarkable R523 million net profit for its 2024 financial year, showcasing its resilience and adaptability in navigating a challenging economic environment. With a robust capital adequacy ratio of 31.4% and liquidity reserves totaling R7.1 billion, the bank has solidified its position as a key player in South Africa’s financial sector.
Group CEO Kennedy Bungane highlighted the bank’s strategic approach, stating, “This year’s performance affirms African Bank’s ability to deliver value even in a constrained environment. Our focus on diversifying revenue streams and providing innovative, customer-centric solutions positions us as a key player in South Africa’s financial sector.”
An 8% rise in net advances to R34.4 billion highlights the bank’s growth, with 38% of these advances now rooted in secured business and commercial lending, reflecting a deliberate shift toward lower-risk practices. The personal banking division also experienced significant growth, achieving a 36% year-over-year increase in its customer base, which now stands at 5.4 million.
Interest income reached an impressive R7 billion, driven by strategic shifts toward secured lending and complemented by a 14% rise in non-interest income to R1.54 billion. Increased use of MyWORLD transactional accounts, expanded credit card activity, and a broader range of insurance products fuelled this growth.
Operational efficiency was evident as credit impairment charges decreased by 20%, bringing the credit loss ratio down to 6.3% from 8% in the prior year. These metrics reflect African Bank’s commitment to building a scalable and sustainable business model while mitigating risks.
Innovation has been a cornerstone of the bank’s strategy, with the launch of renewable energy financing, mobile handset financing partnerships, and an upcoming home loans program set to expand in 2025. Additionally, the acquisition of Grindrod Bank and segments of Sasfin’s Commercial Property and Capital Equipment Finance divisions has strengthened African Bank’s support for SMMEs and entrepreneurs.
As it aligns growth ambitions with enhanced governance and risk frameworks, African Bank is positioning for an initial public offering by 2027/28. With 86% of its funding sourced from retail depositors, the bank remains committed to diversifying its funding strategies while driving financial inclusion and economic development.
Looking ahead, Bungane foresees further growth opportunities amid improved macroeconomic conditions and increased investor confidence following peaceful elections and a unified government in South Africa.
