Basani Maluleke on the main drivers behind impressive H1 earnings

African Bank is making waves in the financial world as it reports profits of $533 million for the six-month period ending on March 30th, 2019. The insurance and financial services group is focusing on tightening credit underwriting to ensure sustainable growth and profitability. Basani Maluleke, the Group CEO of African Bank, recently joined CNBC Africa to discuss the bank's progress, challenges, and plans for the future. One of the key highlights of the interview was the successful launch of the new transactional account by African Bank. Maluleke revealed that the bank had over 12,000 active accounts shortly after the launch and aims to reach 100,000 customers by the end of September. The ambitious goal is to grow the customer base to two and a half million by the end of 2021. The competitive landscape in the banking industry was also a focal point of the discussion. Maluleke acknowledged the intense competition in the market, with new banks emerging frequently. To stand out, African Bank is focusing on offering the lowest banking fees and a unique value proposition to attract and retain customers. Rebuilding trust in the African Bank brand was another significant topic of the interview. Maluleke acknowledged the challenges faced in regaining customer confidence after the bank's financial troubles in recent years. However, she highlighted the significant growth in the retail deposits program, indicating that customers are starting to trust the bank with their money once again. Cost-cutting measures and branch optimization were also addressed during the interview. Despite the industry trend of reducing branch networks, African Bank plans to maintain its branch footprint and even increase it in the future. The bank's research shows that customers value the in-branch experience, and 85% of revenues come from the branch network. Looking ahead, Maluleke expressed enthusiasm for the future of African Bank. The focus remains on marketing the new transactional product, growing retail deposits, and expanding lending activities. With a 17% increase in sales and a focus on lending to lower-risk customers, African Bank is poised for sustainable growth and high-quality lending practices. In conclusion, African Bank under the leadership of Basani Maluleke is on a path of resurgence and transformation. By prioritizing customer trust, competitive advantage, and prudent financial practices, the bank is setting a strong foundation for future success in the dynamic financial services industry.