African Bank has reported strong financial results for the first half of its financial year, with a notable increase in both customer numbers and profits. The group’s customer base grew by 6% to 6.1 million, while net profit after tax rose by 15% to R202 million. This growth was driven by a 20% increase in net advances, reaching R39.1 billion, with business and commercial loans surging by 49%. Personal banking saw a smaller rise of 3%, reflecting a strategic shift towards more diversified lending.
The bank’s interest income climbed by 6% to R3.7 billion, supported by the expansion of its business and commercial loan portfolio. Noninterest income also performed well, jumping by 39% to R909 million, thanks to higher usage of transactional accounts and credit cards. Additionally, net insurance income improved by 8% to R308 million, partly due to better claims management. However, operating expenses rose by 16% as the bank invested in digital transformation and infrastructure to strengthen its services.
Credit impairment charges fell by 10% to R1.2 billion, lowering the credit loss ratio from 6.6% to 5.3%. This improvement was attributed to better risk management and a shift towards secured business lending. African Bank remains committed to its Excelerate strategy, aiming to become a fully-fledged, digitally driven bank. The group expressed confidence in its future, emphasising its goal to build a sustainable, customer-focused business with strong potential for a future stock market listing.