African Bank coming out of the woods
Financial institution’s overall net profit increased by 19% to R533m in the half year ended March, boosted by the insurance business as profit from the banking operations fell 10% R69m
African Bank, the entity that came out of curatorship in 2016 following the collapse of its parent company two years earlier, is regaining public trust, with more than 19,000 people having invested R1.5bn since its relaunch. About R500m flowed into the bank in the six months to March alone and more than half of its customers are reinvesting with it when their savings mature, the bank said on Tuesday. The bank’s overall net profit increased by 19% to R533m, thanks to a strong performance from its insurance division. The credit life book generated R613m in gross profit. However, profit from the banking operations fell 10% to R69m as costs and provisions for impairments increased. African Bank CEO Basani Maluleke said the fact that the group was generating most of its profit from credit life insurance sales did not mean its banking operations were not performing strongly. “All our loans are sold together with credit life, so you can’t separate the two. We wouldn’t have the in...
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