ABSA Group
ABSA Group’s strong recent turnaround, as well as its successful e-business strategy, makes it the judges’ choice as the best bank in South Africa.
After posting a double-digit decline in net profit for fiscal 2002, the bank has switched direction in fiscal 2003, increasing net profit in the first half by 82.3%. Its ROE for the period stood at 21.4% compared with 12.9% for all of 2002. ABSA’s cost-to-income ratio, too, has stayed at a respectable 60.3%.
Since the launch of its e-business strategy, the bank has had an increase of 49.7% in e-business related income. This includes a jump in the value of internet banking transactions by 47.1% to R121bn ($16.3bn).
With its 395,000 internet banking customers – corresponding to a 38% share of the market – ABSA is the undisputed leader in this market. The bank has also issued two million VISA Electron debit cards, representing 88% of the market for the cards.
Summing up ABSA’s significant turnaround, Pierre Loubser, assistant to the bank’s chief executive, said: “Through the vision of our leadership, candid and frequent communication with staff and the sharing of a purpose to rebuild ABSA has seen us emerge stronger and more self-assured. This has been instrumental in achieving both our financial performance and recent brand and organisation awards.”
