African Bank (ABKI) investor relations material

Executive summary

• Excelerate25 strategy execution remains on track, focusing on resilience, scalability, and sustainability, with pre-IPO timelines extended to post-FY27 to derisk the process.

• FY24 marked significant progress in diversifying revenue streams and de-risking the balance sheet, with strong growth in Business & Commercial lending and disciplined capital allocation.

• Major acquisitions (Grindrod Bank, Sasfin Bank businesses, Ubank) expanded capabilities in retail, business, and commercial banking, with divisionalisation and integration completed.

• Customer base grew to 5.4 million, with significant digital adoption and MyWORLD transactional accounts surpassing 1.7 million funded accounts.

• Pre-IPO preparations advanced, including securing GEPF/PIC as anchor shareholder and launching a 10% employee share scheme.

Financial highlights

• Net advances increased by 8% to R34.4bn, led by 15% growth in Business & Commercial and 4% in Personal Banking.

• Net profit after tax reached R523m, up from less than R200m at half-year.

• Total operating profits after impairment surpassed R5bn, an 8% year-on-year increase.

• Non-interest revenue and insurance income both increased by 14%, with insurance profits at R821m.

• Operating expenses reduced by 1% to R4.5bn, reflecting disciplined cost management.

Outlook and guidance

• FY25 will focus on consolidating recent acquisitions, extracting value from the expanded customer base, and progressing pre-IPO plans.

• Expansion of secured lending (home loans, vehicle and asset finance) and enhanced insurance offerings planned.

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

• IPO targeted post-2027, contingent on market conditions and full integration of new capabilities.