Absa had invested billions of rands in its information technology space as the lender seeks to provide better services and security to its clients, the banking group said on Monday during the release of its financial results for the year to December.
“Absa continues to make material investments in information technology, where costs increased by 19% to R4.9-billion, as Absa sought to build on the gains made during the past three years in improving system reliability and stability for customers, and to strengthen security and controls,” said Absa.
The lender, which has gone numerous leadership changes over the past two years, had a stellar year, reporting a surge in headline earnings from R7.9-billion to R18.6-billion. The company’s customer deposits increased 12%.
The lender, whose share price increased nearly 4% on the JSE following the release of the results, also saw a 49% increase in home loan registrations, while new personal loans surged 40% in its local operations.
Absa interim CEO Jason Quinn said: “This is a strong set of results which reflect the benefit of not only the improved operating environment in 2021, but also the deliberate actions that we have taken to ensure that Absa remains resilient and poised to resume our growth plans in a favourable environment.
“Our purpose-led approach to supporting our clients and communities defined our success in a tough environment while also creating value for shareholders.”
The group, which employs more than 35 000 people, also reported a return on equity of 15.8%, up from 7.2% in the comparative period.
“We have come through the crisis in a strong position, having focused on managing operating leverage, building balance sheet resilience and preserving capital,” said Punki Modise, Absa interim group financial director.
“These actions and our financial performance resulted in a return on equity that exceeds our cost of equity, years ahead of expectation.”
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