By Lehlohonolo Lehana.
African Bank Holdings Limited and African Bank Limited reported a 15% rise in net profit to R202 million for the six months ended 31 March 2025, driven by strong growth in Business & Commercial lending.
CEO Kennedy Bungane notes that the lender’s capital adequacy ratio remains strong at 28%, significantly above the regulatory minimum, reinforcing its capacity to fund growth and absorb potential risks.
Credit impairment charges dropped 10%, contributing to a drop in the credit loss ratio to 5.3%. This improvement is attributed to enhanced risk management practices and a shift toward more secured lending.
Net advances rose 20% to R39.1 billion, with business and commercial loans growing by 49%. Customer deposits rose 8% to R36.3 billion and continue to form the bulk of the bank’s funding base, accounting for 91% of total funding.
Non-interest income rose by 39% to R909 million, driven by greater usage of the bank’s digital channels, including its MyWORLD transactional accounts and credit cards.
African Bank completed the acquisition of Sasfin’s capital equipment finance business, following the August 2024 acquisition of Sasfin’s commercial property finance division. The transaction helps to expand the lender’s offering in the business and commercial banking space, notably among small and medium-sized enterprises (SMMEs).
The bank also launched an employee share ownership scheme, iKamva Lethu, under which 10% of the bank’s shares have been allocated to staff.
This forms part of African Bank’s broader pre-initial public offering (IPO) strategy, including plans for a retail BEE offering and a management scheme.
African Bank’s proposed listing on the JSE has been postponed to 2028. This date is also subject to favourable market conditions and achieving its growth targets.
Looking ahead, African Bank plans to expand its secured lending offerings, introduce a digital SMME lending platform, and increase investment in digital infrastructure, regulatory compliance, and cybersecurity.