African Bank (ABKI) investor relations material

Executive summary

• Accelerate 25/Excelerate25 strategy execution remains on track, driving resilience, scalability, and sustainability, with IPO timeline extended to post-FY 2027 to derisk and align with investor expectations.

• FY 2024 marked by strong growth in customer base to 5.4 million, diversification of revenue streams, and disciplined capital allocation.

• Integration of UBank, Grindrod Bank, and Sasfin CPF & CEF expanded capabilities in retail, business, and commercial banking.

• Employee share scheme launched, granting ~10% ownership to all staff, and GEPF confirmed as anchor shareholder for IPO.

• Social responsibility and inclusivity targets exceeded, maintaining B-BBEE level one status and strong CSR engagement.

Financial highlights

• Net advances grew 8% year-over-year to R34.4bn, led by 15% growth in business and commercial and 4% in personal banking.

• Net profit after tax reached R523m, with total operating profit after impairments up 9% year-over-year.

• Non-interest revenue and insurance income both increased 14% year-over-year, driven by transactional growth and product diversification.

• Credit impairment charge reduced by R653m, with credit loss ratio improved to 6.3% from 8%.

• Operating expenses tightly managed, reduced by 1% to R4.5bn.

Outlook and guidance

• FY 2025 focus on consolidating acquisitions, expanding secured lending, and launching new digital and transactional capabilities.

• Continued investment in compliance, risk management, IT infrastructure, and digital transformation to support growth.

• IPO preparations to intensify, with further alignment on BEE ownership and management, targeting a listing post-FY 2027.

• Positive macroeconomic outlook with easing interest rates and improved GDP growth expected to support credit extension and franchise growth.