African Bank's acquisition strategy strengthens business and commercial offerings
African Bank Holdings Limited (ABHL) has reported robust interim results for the six months ending 31 March 2025, with Group net profit after tax climbing 15% year-on-year to R202m.
These results underscore the momentum of its Excelerate strategy, as the Group accelerates its evolution into a diversified, full-service bank catering to both personal and business clients.
Chief executive officer Kennedy Bungane said the Group's performance affirms the strategic choices made in recent years and underscores a return to African Bank's original mission of financial inclusion.
'These results are more than a financial milestone, they mark a reaffirmation of purpose,' said Bungane. 'They show that our customer-first, innovation-led approach is reaching South Africans where it matters most. Whether it's a township entrepreneur accessing capital or a family investing in solar power, African Bank is delivering impact.'
Net advances grew 20% to R39.1bn, with a strong 49% surge in Business and Commercial advances. The Bank also reported a solid 6% increase in its customer base to 6.1 million, driven by growth in both its Personal Banking and Alliance Banking platforms.
'Our shift toward a broader product mix, particularly into secured lending, is building resilience into our business while unlocking new revenue streams,' added Bungane. 'As we celebrate 50 years since our founding, we are actively shaping a future where more South Africans have access to the capital, tools and services they need to thrive.'
Diversification drives growth
African Bank's diversification drive includes the successful acquisition of Sasfin's capital equipment finance business, which follows last year's acquisition of its commercial property finance division. These additions strengthen the Bank's Business and Commercial proposition and expand its footprint in the SMME sector.
The Group continues to maintain a healthy funding base, which grew by 8% to R36.3bn. Customer deposits remain the primary source of funding, comprising 91% of the total. The Group's total capital adequacy ratio stands at 28%, well above regulatory minimums.
Non-interest income grew by 39% to R909m, driven by increased uptake of the Bank's digital offerings, including the MyWorld transactional account and credit-card services – demonstrating increasing trust in the Bank and its services.
Credit impairment charges declined by 10%, bringing the credit loss ratio down to 5.3%, thanks to strengthened risk management and a shift towards secured lending.
Chief financial officer Anbann Chetti said the results validate the Group's strategy and operational focus: 'Our Excelerate strategy is not only delivering earnings growth but also reshaping the fundamentals of our business. We are building a scalable, diversified, and future-ready financial institution that is creating real value for shareholders, employees and society.'
As part of its Pre-IPO roadmap, African Bank launched its employee share ownership scheme, iKamva Lethu, allocating 10% of the bank's shares to staff. Additional broad-based empowerment initiatives, including a retail BEE offering and a management scheme, are under development.
Looking ahead, African Bank will expand its secured lending offerings, launch a digital SMME lending platform, and invest further in digital infrastructure, compliance, and cybersecurity.
Bungane concluded: 'This journey is about building a bank that belongs to South Africans, one that serves with integrity and purpose. As we prepare for a future listing, we remain guided by our founders' bold vision and the needs of the communities we serve.'
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