Bsa Šeadline earnings u’ ͵ͲΨ

PRETORIA – Financial services group Absa yesterday published interim financial results for the period ended June 2022, showing that headline earnings increased by 30 per cent, and diluted headline earnings per share (HEPS) grew 29.8 per cent to 1 278.4 cents per share.

South Africa’s (SA) economic performance post-COVID-19 had been volatile, but generally stronger than expected, Absa said.

Revenue

The group’s Returns of Earnings (RoE) improved to 16.6 per cent from 13.9 per cent and its return on average assets was 1.31 per cent from 1.06 per cent. Revenue grew 14 per cent to R47 billion and total assets increased 11 per cent. Gross loans and advances grew 11 per cent to R1.2 billion, while deposits rose 10 per cent.

Absa declared an ordinary dividend of 650 cents per share, up 110 per cent from 310 cents.

Credit impairments rose 10 per cent to R5.2 billion, resulting in a 0.91 per cent credit loss ratio from 0.88 per cent, while the net asset value (NAV) per share grew 0Š74uenmgpleoyleaesr. nine per cent to 15 668 cents.

Absa is active in 15 countries, boasting 1 009 outlets and 35 PUMALANGA Thungela Resources has declared an interim dividend of R8.2 billion, or R60 per share, following a record half-year in which profit rocketed on the back of strong export coal prices.

The coal miner, which was spun out of Anglo American in June last year, reported profit of R9.6 billion compared with R351 million in the first half of 2021.

The dividend represented a payout of 92 per cent of adjusted operating free cash flow, and was substantially higher than the minimum payout ratio of 30 per cent per its stated dividend policy.

MGenerated

Considering the increase in the share price – 460 per cent in the past year - together with the 2021 final and 2022 interim dividends, Thungela has generated a total shareholder return of 1 138 per cent since listing through to the end of June 2022.

July Ndlovu, Thungela Chief Executive Officer (CEO) said the first half had seen ‘good progress contributes 84 per cent of group earnings, headline earnings grew 29 per cent, driven by 21 per cent higher pre-provision profit.

Total revenue increased 13 per cent, with non-interest income up 19 per cent and net interest income rising 10 per cent. Operating expenses grew five per cent, resulting in a 48.8 per cent cost-to-income ratio from 52.4 per cent.

Credit impairments increased six per cent, producing a 0.91 per cent credit loss ratio from 0.75 per cent. Looking ahead, Absa said that the outlook for the global economy was particularly uncertain. “Geopolitical events in Ukraine are acute, and sharp moves in commodity prices and potential supply interruptions are difficult to assess,” it said.

INflAtION

“Moreover, dramatic increases in inflation are being felt across most economies, triggering in many the most rapid monetary policy tightening in decades. Economic growth is widely expected to fall, although the extent remains unclear. This macroeconomic environment has increased risk aversion in global financial markets, producing a material headwind for financial flows into emerging on a number of fronts’, including the delivery of ‘another set of exceptional financial results driven by elevated benchmark coal prices in a volatile operating environment’.

“Demand for affordable energy sources such as thermal coal escalated amid the energy security crisis which was exacerbated by the escalation of the Russia-Ukraine conflict.

Coupled with supply constraints in major coal producing regions, this resulted in the price of thermal coal increasing to unprecedented levels,” Thungela said.

Advantage

The miner’s ability to fully take advantage of the strong price environment in the first half of 2022 was however hindered by Transnet Freight Rail’s continued underperformance.

Notwithstanding this challenge, adjusted operating free cash flow of R8.9 billion resulted in a net cash position of R14.8 billion in the six months ended in June – up from R3 billion in the comparative period in 2021.