African Bank reported a loss of R311 million in the six months to end-March negatively impacted by the worsening macroeconomic conditions and the Covid-19 pandemic outbreak. busrep
“The Covid-19 specific provision is a best estimate calculated on the information, such as collection data, available to the end of May 2020. Excluding the Covid-19 specific adjustment, the bank recorded a net profit after tax of R85m on a pre-Covid-19 adjustment basis,” the bank said. However, its transactional banking proposition, MyWORLD, which was launched in May last year continued to grow, with more than 258 000 accounts opened in the past 10 months.
Chief executive Basani Maluleke said the bank is extremely pleased with the increasing number of retail deposit customers who continue to show trust in the bank, as evidenced by the significant increase in savings and investments deposits of 158 percent on a year-on-year basis to R3.84 billion. “These deposits have continued to grow notwithstanding the Covid-19 lockdown. The bank continues to maintain robust capital levels and surplus liquidity,” Maluleke said.
The bank said 50 percent of the R3.8bn in investments has been invested into the long-term 5-year fixed deposit product. Its retail customer deposits, including transactional banking balances increased to R3.84 billion, up from R1.49bn while cash deposits, including surplus liquid assets, declined to R5.39bn compared to R5.99bn reported last year.
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