Resurrected African Bank swings into profit
CEO Brian Riley says the increase in profitability is a result that ‘should satisfy all stakeholders’
African Bank, the "good bank" salvaged from the collapsed Abil group, on Friday morning reported it swung to an after-tax profit of R786m for the year to end-September.
In the comparative period, which was only the six months from when the bank re-opened on April 4 to end-September, it reported a loss of R1.7bn.
"Although we come off a relatively low base, the significant increase in profitability is a result which should satisfy all stakeholders, particularly as it includes planned investment and voluntary severance costs," African Bank CEO Brian Riley said in the statement.
"In particular, the core loans business has been fixed with the branch network producing a much improved return on equity of 20%."
African Bank is not part of African Phoenix, the renamed Abil JSE-listing, whose shares started trading again in February after being suspended in August 2014.
The shares in unlisted African Bank Holdings were privately held by the South African Reserve Bank, the Government Employees Pension Fund, Barclays Africa Group, Nedbank, FirstRand Bank, Investec Bank, Standard Bank and Capitec Bank, the results statement said.