The main drivers behind the improved profitability were an eight percent increase in net interest income, together with a 72% reduction in credit losses, a 42% increase in trading income, and a seven percent increase in net fees and commission income.
Commenting on the profit, Managing Director Keabetswe Pheko-Moshagane said the bank maintained a strong liquidity position during the first half of the year despite prevailing market challenges.
“Our performance echoes our customers' and shareholders' confidence in our Absa brand. We would not have achieved such pleasing results without the unwavering support and resilience of our customers as well as the dedication and commitment of our employees. We have also remained consistent in the execution of our strategy despite the challenging environment,” she said.
The MD said the bank enhanced its credit policy to adapt it to the current economic environment and business climate. The aim is to support customers to ease into recovering from the effects of COVID-19 and realise their growth ambitions. “We launched several solutions to cement primacy and partnerships with our clients.
We opened an SME business centre, launched a multi-residential financing product, and introduced innovative risk management products which have assisted our customers to hedge against the market's volatility risk, she said. Further, she said they have refreshed their SME offerings in line with the citizenship economic empowerment plans.
Specifically, the increased focus on the Enterprise and Supply Chain Development (ESD) programme to shift from just providing funding to including capacity building such as training on project management, finance, and record keeping. This is to complement and align with the government agenda of economic inclusion for citizens.
“We remain steadfast in executing our refreshed strategy, being an active force for good in everything that we do. We will continue to enhance our digital platforms and develop new solutions that offer our customers convenience as well as forge rewarding partnerships that provide value to customers during this increasingly challenging economic climate.
Our people remain the heartbeat that drives our organisation and we remain committed to creating a conducive working environment and employee value propositions,” she said.
