Absa Bank Plc reports KES 14.6Bn profit with 25pc growth FY2022
Absa Group Plc has announced its Full year Financial Results for the year 2022.With a profit margin of Kes.14.6Billion.
Reportable segment changes
The Group has changed its operating model, effective 1 July 2022.This change is part of the Group’s journey to enhance market competitiveness, while also improving its transformation position. In essence, the Group has moved from two commercial businesses,
Corporate and Investment Banking (CIB) Pan-Africa and Retail and Business Banking (RBB) Pan-Africa, to five business units (Everyday
Banking, Relationship Banking, Product Solutions Cluster, CIB Pan-Africa and Absa Regional Operations RBB).
Correction of prior period errors;
Prior years’ statements of financial positions were adjusted for the following:
• Both the 2021 and 2020 Statements of Financial positions were adjusted by R1.3bn between trading portfolio assets and debt
securities to ensure appropriate disclosure of fair value recognised on credit linked note instruments.
• Trading portfolio assets and Hedging portfolio assets (2021: R1.5bn; 2020: R3.5bn), and similarly Trading portfolio liabilities and
Hedging portfolio liabilities (2021: R0.8bn; 2020: R0.2bn) have been adjusted to ensure appropriate IAS 32 offsetting
The 2021 statement of cash flows will be corrected for the abovementioned reclassifications as well as for nostro balances with foreign banks of R4.8bn which were previously excluded from Cash and cash equivalents.
The afore-mentioned restatements have no impact on the statement of comprehensive income, statement of changes in equity or any performance or prudential ratios.
The Board of Directors oversees the Group’s activities and holds management accountable for adhering to the risk governance framework. To do so, directors view reports prepared by the businesses, risk and others. They exercise sound independent judgement, and probe and challenge recommendations as well as decisions made by management Together with the GACC, the Board has reviewed and approved
the financial results announcement released on 13 March 2023.