JOHANNESBURG - African Bank reported a third successive year of increasing profits on Tuesday, saying its net profit after tax for the year ended September 30 was up 13percent to R 1.15 billion.
The successes during 2019 were achieved in a challenging macroeconomic environment with the South African consumer remaining under financial pressure, and the bank would remain prudent in its credit underwriting, CEO Basani Maluleke said.
“We have made good progress in achieving our strategic objectives. One of the Bank’s most important strategic objective is the diversification of its product offering," she said.
Maluleke said the bank's transactional product, MyWORLD, would significantly accelerate African Bank's efforts to diversify its revenue streams and broaden its customer base, while aiding efforts to better understand customers, attract additional retail deposits and grow digital capabilities.
African Bank said the increase in net profit was largely due to improvements in the origination of its loan book and the collection of outstanding balances. An improvement in the insurance results and a more efficient balance sheet also had a positive effect.