African Bank has posted marginal net profit growth for the year ended September 2024, rising from R521 million in 2023 to R523 million in 2024. Despite a 4% decline in interest income to R7 billion, the group implemented a deliberate strategy to curb unsecured loan growth while diversifying its credit book. Non-interest and insurance income rose by 14%, while credit impairment charges improved by 20%, reducing its credit loss ratio to 6.3%. The group’s net advances grew by 8%, with its business and commercial segment accounting for 38% of advances to customers. Deposits increased to R35.5 billion, with business and retail deposits comprising 92% of total funding, which increased to R35.5 billion. Additionally, the group’s customer base expanded by 36% to 5.4 million, driven by its Alliance Banking partnerships. Looking ahead, the group plans to include broadening insurance products, expanding home loans to customers and adding new fintech and non-banking partners.
