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<p>It&#8217;s the big news story of the day, Daniel Mminele, ABSA group CEO, could we on his way out. This after just a short 15 month stint at the helm at that bank. There are reports of differences in strategy with the board, joining CNBC Africa for further analysis is Wayne Mccurrie, Portfolio Manager at FNB Wealth and Investments.</p>


ABSA CEO Daniel Mminele to step down from position over strategic differences with board

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<p>The Absa Purchasing Managers’ Index rose for a third consecutive month, to reach 57.4 index points in March. This is from 53 the month before. The increase was supported by an improvement in all five subcomponents, relative to February. Joining CNBC Africa to unpack the latest numbers is Peter Worthington, Senior Economist at Absa.</p>


SA’s Absa PMI rises for third consecutive month

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<p>Absa says its purchasing managers’ index increased to 53 index points in February from 50.9 in the month before. The bank says the increase was supported by three of the five subcomponents gaining, when compared to January. Purchasing managers are said to be optimistic about the next 6 months with the expectation index unchanged at 59.2 per cent. Miyelani Maluleke, Economist at ABSA Corporate &#038; Investment Banking joins CNBC Africa for more.</p>


SA’s Absa PMI expands rapidly in February

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<p>Coming out with its latest Sub-Saharan Africa update, ABSA reports that Nigeria’s headline inflation climbed to 15.8 per cent year-on-year in December 2020. This marks a 38-month high, largely driven by a rise in food prices. Joining us for that update on Nigeria and more is Ridle Markus, an Africa Strategist at Absa Corporate &#038; Investment Banking.</p>


Rwanda ready to trade under the AfCFTA

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<p>Sub-Saharan Africa’s economy has begun to recover as Covid-19 measures imposed in the first half of the year have been lifted.</p>


Absa’s 2021 outlook for SSA economies

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<p>Zambia’s debt issues continue, as the country went into a sovereign default on Friday. Zambia’s Eurobond holders rejected a request from the government to defer interest payments. Zambia missed payment of a $42.5 million coupon last month. It had until the end of business on Friday, to pay. Zambia’s Vice President Inonge Wina had said that the country would not default. Joining CNBC Africa for the latest Sub-Saharan Africa update is Ridle Markus, Africa Strategist at Absa Corporate &#038; Investment Banking.</p>


Zambia Eurobond holders reject request to defer interest payments

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<p>The Ethiopian government has continued its military action in the northern Tigray region over the past few days, with reports of air strikes on targeted facilities. Prime Minister Abiy Ahmed has replaced the country’s military Chief and reshuffled the leadership of other security branches. Joining CNBC Africa for the latest Sub-Saharan Africa update is Ridle Markus, Africa Strategist at Absa Corporate &#038; Investment Banking.</p>


Ethiopian PM replaces top military leadership as Tigray conflict worsens

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<p>Côte d’Ivoire’s Alassane Ouattara has been re-elected as president of the country, in a landslide victory.</p>


Côte d’Ivoire’s Alassane Ouattara wins landslide re-election

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<p>Scoring 89 points, South Africa has retained the top spot in the latest Absa Africa Financial Markets Index.</p>


SA retains top spot in the Absa Africa Financial Markets Index

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<p>October is global Cyber Security Awareness Month. With the country’s ailing economy and high numbers of unemployment; ABSA is developing cyber skills to alleviate poverty, and is assessing the skills shortage in cybersecurity. Absa set up the Cybersecurity Academy with the Maharishi Institute to bring marginalised youth through the institute, giving them a hot skill and financial empowerment so they can earn a living: The intention is to set-up an academy on the Cape Flats, and train 300 people a year. Sandro Bucchianeri, Chief Security Officer at ABSA joins CNBC Africa for more.</p>


ABSA looks to equip SA’s youth with cyber skills to fight poverty

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<p>Banking group ABSA has reported a drop in interim profits impacted by its 297 per cent increase in credit impairments which resulted in an 82 per cent plunge in headline earnings and no interim or full year dividend is forecasted for 2020. ABSA CEO, Daniel Mminele joins CNBC Africa for more.</p>


ABSA sees massive H1 headline earnings drop as COVID-19 has weigh on the business

ABSA sees massive H1 headline earnings drop as COVID-19 weigh on the business


<p>The lender, in the midst of a turnaround drive when the pandemic struck, had already warned that bad loans would blow a hole in its performance and drag earnings down by up to 97%.</p>



<p>“Given our focus on preserving capital, we do not envisage declaring an ordinary dividend for 2020,” the lender said in its results statement, adding that its capital levels were expected to remain resilient.</p>



<p>The bank’s headline earnings per share &#8211; the main profit measure in South Africa &#8211; stood at 67.7 cents ($0.0396) in the six months to June 30, compared with 920 cents a year earlier.</p>



<p>The impact of a 297% rise in credit impairments was felt across all of its units. Its operations elsewhere in Africa, which were expected to bolster the earnings of South African banks following one of the world’s strictest lockdowns in their home market, posted a 388% rise in credit impairments.</p>



<p>Absa has been on an aggressive drive to grow revenue elsewhere in Africa following its split from Britain’s Barclays in 2017.</p>



<p>Eager to gain back lost ground under its former parent, the bank set itself a series of ambitious targets and ramped up in areas like lending, where it could be more aggressive than had been possible under Barclay’s.</p>



<p>Now it looks set to suffer one of the biggest blows to performance due to bad loans amongst all of South Africa’s major lenders.</p>



<p>Its return on equity &#8211; a key profitability metric &#8211; fell to 1% from 14% previously.</p>



<p>On a normalised basis, which accounts for Absa’s separation from Barclays, headline earnings per share fell by 82%.</p>



<p>($1 = 17.1172 rand)</p>


Absa Reboots Image As 100 Years Of Barclays In Africa Ends

S.Africa’s Absa says full-year dividend unlikely after interim profit tumbles


<p>JOHANNESBURG (Reuters) &#8211; South Africa’s seasonally-adjusted Absa Purchasing Managers’ Index (PMI) expanded in July, although at a slower rate compared to the previous month.</p>



<p>The index, which gauges manufacturing activity in Africa’s most industrialised economy, fell to 51.2 points in July from 53.9 points in June, remaining above the 50-point mark that separates expansion from contraction.</p>



<p>The business activity sub-index ticked down slightly to 62.9 from 64.6 in June, Absa said in a statement on Monday.</p>



<p>The employment sub-index showed the manufacturing sector was still shedding jobs even with activity recovering.</p>



<p>South Africa imposed a strict lockdown in late March to curb the spread of the coronavirus but has since eased some of the restrictions, with most key industries now allowed to operate at full capacity subject to health and safety protocols.</p>


South Africa’s July Absa PMI signals slower manufacturing improvement

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<p>S&#038;P Global Ratings has affirmed Uganda’s foreign and local currency long- and short-term sovereign ratings with stable outlook. And the week ahead if filled with inflation data from Nigeria, Botswana and GDP numbers from Ghana. Ridle Markus, Africa Strategist, Absa Corporate and Investment Banking joins CNBC Africa for more.</p>


COVID-19: Tracking market movements across the African continent


<p>A multi-billion rand loan guarantee scheme announced by South African President Cyril Ramaphosa last month is now officially in operation, with the assistance of the country’s major banks, including FNB, Investec, Standard Bank and Absa.</p>



<p>Ramaphosa announced the scheme as a measure to soften the blow of the <a href="https://www.cnbcafrica.com/videos/2020/05/13/how-african-economies-will-reawaken-from-the-covid-19-nightmare/">coronavirus pandemic </a>and national lockdown on banks as well as their individual and business clients.</p>



<p>The following statement provides more information:</p>



<p><strong>LOAN GUARANTEE SCHEME OPENS</strong></p>



<p>The Covid-19 loan guarantee scheme announced by President Cyril Ramaphosa in April will operate from today, 12 May 2020. The initial set of participating banks (Absa, First National Bank, Investec, Mercantile Bank, Nedbank and Standard Bank) are ready to accept loan applications from eligible businesses which bank with them.</p>



<p>The activation of the loan guarantee scheme follows the finalisation of legal details by National Treasury, the South African Reserve Bank and the Banking Association South Africa.</p>



<p>The loan guarantee scheme is an initiative to provide loans, guaranteed by government, to eligible businesses with an annual turnover of less than R300 million to meet some of their operational expenses. Funds borrowed through this scheme can be used for operational expenses such as salaries, rent and lease agreements, contracts with suppliers, etc.</p>



<p>Government and commercial banks are sharing the risks of these loans. Initially, the National Treasury has provided a guarantee of R100 billion to this scheme, with the option to increase the guarantee to R200 billion if necessary and if the scheme is deemed successful. Eligible businesses should contact their primary or main banker.</p>



<p>More details on the scheme can be found in a Frequently Asked Questions guide posted at <a href="http://www.treasury.gov.za/">http://www.treasury.gov.za/</a>&nbsp; <a href="https://www.resbank.co.za/">https://www.resbank.co.za/</a> Pages/default.aspx and <a href="https://www.banking.org.za/">https://www.banking.org.za/</a>.</p>



<p>Further queries should be directed to the individual banks, which are administering the scheme.</p>



<p>Jointly issued by National Treasury, The South African Reserve Bank and The Banking Association South Africa</p>



<p>Date: 12 May 2020</p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


Here’s how to apply for SA’s COVID-19 loan guarantee scheme


<p>JOHANNESBURG (Reuters) &#8211; South African lender Capitec said on Tuesday it would not pay a dividend for its full year, although profits rose by 19%, in line with guidance from the country’s central bank to <a href="https://www.cnbcafrica.com/southern-africa/2020/04/07/sarb-guides-banks-to-put-dividends-bonuses-on-hold/">scrap payouts amid the coronavirus outbreak</a>.</p>



<p>The <a href="https://www.cnbcafrica.com/news/2020/04/14/south-african-reserve-bank-cuts-repo-rate-by-another-100-basis-points/">South African Reserve Bank (SARB)</a> asked lenders to skip dividends for 2020 earlier in April to preserve capital for lending. Capitec was one of only a few lenders to not have already declared a dividend at this time.</p>



<p>“After extensive deliberation, the board decided to support the guidance of the Reserve Bank and decided against the declaration of the final ordinary dividend,” Capitec, which normally pays out 40% of profits to shareholders, said in its results statement.</p>



<p>The banks’ main rivals &#8211; South Africa’s big four lenders including FirstRand and Absa &#8211; all reported their results and declared dividends in March. The SARB has said dividends already announced can be paid.</p>



<p>Capitec reported a full-year profit rise of 19%, at the bottom end of a forecast range of 18% to 21% it outlined in a trading statement last month. [L8N2BC6T4]</p>



<p>Its headline earnings per share &#8211; the main profit measure in South Africa &#8211; stood at 5,428 cents ($3.02), verses 4,557 cents a year earlier.</p>



<p>The lender grew to become South Africa’s sixth largest bank by assets via a strategy focused on unsecured lending to lower-income consumers, and is generally perceived to be more exposed to any economic downturn as a result. Unsecured lending relies solely on consumers’ promises to repay.</p>



<p>A fear of a spike in bad debts following the <a href="https://www.cnbcafrica.com/east-africa/2020/04/08/how-african-economies-can-survive-the-covid-19-crisis/">outbreak of the coronavirus and a prolonged lockdown</a> to stem its spread have pummelled bank shares, with Capitec in particular suffering.</p>



<p>Its credit impairment charge rose by 14% over the year to February, in line with other banks which also saw impairments spike as the South African economy deteriorated.</p>



<p>($1 = 17.9976 rand)</p>



<p>(Reporting by Emma Rumney, Editing by Raju Gopalakrishnan)</p>



<p>This article was first published on Reuters Africa <a href="https://af.reuters.com/article/investingNews/idAFKCN21W0P2-OZABS">https://af.reuters.com/article/investingNews/idAFKCN21W0P2-OZABS</a> and is republished with its permission.</p>



<p>For more coverage on COVID-19 visit: <a href="https://www.cnbcafrica.com/covid-19/">https://www.cnbcafrica.com/covid-19/</a></p>


COVID-19: South Africa eases lockdown to revive battered economy

South Africa’s Capitec says full-year profits rise by 19%, skips dividend

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<p>Three of South Africa’s major banks have revealed to CNBC Africa how small businesses can apply for funding from the South Africa Future Trust. This is what they had to say.</p>


Absa

ABSA CEO Daniel Mminele to step down from position over strategic differences with board

SA’s Absa PMI rises for third consecutive month

SA’s Absa PMI expands rapidly in February

Rwanda ready to trade under the AfCFTA

Absa’s 2021 outlook for SSA economies

Zambia Eurobond holders reject request to defer interest payments

Ethiopian PM replaces top military leadership as Tigray conflict worsens

Côte d’Ivoire’s Alassane Ouattara wins landslide re-election

SA retains top spot in the Absa Africa Financial Markets Index

ABSA looks to equip SA’s youth with cyber skills to fight poverty

ABSA sees massive H1 headline earnings drop as COVID-19 weigh on the business

S.Africa’s Absa says full-year dividend unlikely after interim profit tumbles

South Africa’s July Absa PMI signals slower manufacturing improvement

COVID-19: Tracking market movements across the African continent

Here’s how to apply for SA’s COVID-19 loan guarantee scheme

South Africa’s Capitec says full-year profits rise by 19%, skips dividend

SA’s banks reveal how small businesses can apply for the R1bn Oppenheimer fund

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Absa

ABSA CEO Daniel Mminele to step down from position over strategic differences with board

SA’s Absa PMI rises for third consecutive month

SA’s Absa PMI expands rapidly in February

Rwanda ready to trade under the AfCFTA

Absa’s 2021 outlook for SSA economies

Zambia Eurobond holders reject request to defer interest payments

Ethiopian PM replaces top military leadership as Tigray conflict worsens

Côte d’Ivoire’s Alassane Ouattara wins landslide re-election

SA retains top spot in the Absa Africa Financial Markets Index

ABSA looks to equip SA’s youth with cyber skills to fight poverty

ABSA sees massive H1 headline earnings drop as COVID-19 weigh on the business

S.Africa’s Absa says full-year dividend unlikely after interim profit tumbles

South Africa’s July Absa PMI signals slower manufacturing improvement

COVID-19: Tracking market movements across the African continent

Here’s how to apply for SA’s COVID-19 loan guarantee scheme

South Africa’s Capitec says full-year profits rise by 19%, skips dividend

SA’s banks reveal how small businesses can apply for the R1bn Oppenheimer fund

News Tips

Advertise With Us

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