African Bank has reported a substantial profit increase after implementing stricter lending criteria. For the six months ending 31 March 2024, the group posted a net profit of R203 million, up from R41 million compared to the same period last year. This improvement is attributed to a 40% reduction in impairments and a shift in its net advances mix, resulting in its customer base expanding by 38% to 5.7 million. Net advances rose to R32.8 billion, supported by the integration of Grindrod Bank, offering enhanced services to SMMEs and entrepreneurs. The bank also expanded its product offerings in consumer banking, including home loans for staff and handset financing. African Bank CFO Anbann Chetti emphasised that the bank’s steady financial performance demonstrates its strategic shift towards secured lending and revenue diversification. However, interest income decreased by 10% to R3.5 billion due to reduced retail unsecured lending advances in the current economic climate. Conversely, non-interest income increased by 26% to R839 million, driven by higher customer usage of MyWORLD and credit card accounts.
