African Bank more than doubles its half-year profits with new strategy
Ray White interviews Group CEO Kennedy Bungane about African Bank Holdings' half-year results and ‘Excelerate25’ strategy.
African Bank reports that Group profits have more than doubled in the six months ended 31 March 2022 compared to the first half of 2021.
Profits jumped 145% to R372 million (from R152 million in H1 21).
The Group improved its credit loss ratio to 4.6% from 6.1% a year ago.
"The first half of the 2022 financial year started with the implementation of the repositioning of the African Bank Group to enable us to deliver on our ‘Excelerate25’ strategy, said CEO Kennedy Bungane.
The MyWORLD transactional banking offering is integral to this new strategy - new accounts opened increased by 76% during the half-year.
Overview of our Interim Results! We repositioned our #AfricanBank brand and enhanced our Excelerate25 strategy with the aim of becoming the bank of choice for all South Africans.https://t.co/dDPNUpxJYv#ABFinancialResults #AudaciousGrowth pic.twitter.com/y3Hb0PONd4— African Bank (@AfricanBank) May 24, 2022
Ray White (in for Bruce Whitfield) asks Bungane what has driven African Bank's strong turnaround.
It is 13 months since I joined and since we agreed... a new strategy which we call internally 'Excelerate25'. It's meant to significantly move the Bank away from just being just a monoline product player in unsecured lending... to diversity into a fully-fledged retail and business.Kennedy Bungane - CEO, African Bank
The results you are seeing here I think are evidence that this strategy is quite on track.Kennedy Bungane - CEO, African Bank
Bungane says the actions taken after the Bank was placed under curatorship about eight years ago, were spot-on.
"All the bad debt was separated from the good debt.
The Bank now has a good balance sheet and is well-capitalised with good surplus liquidity, he says.
All of this gives us optionality for growth... We are focused on looking forward in building this customer-centric, digital- and data-enabled business that is diversified, that is scalable, sustainable and can have a compelling listing proposition in the near future.Kennedy Bungane - CEO, African Bank
Bungane says the Group has a very strong reach already, growing to over 1.4 million customers.
Listen to the interview with the African Bank CEO on The Money Show: