Absa Group said Friday it expects to lift its dividend payout ratio to at least 50% for the year to December 31, while headline earnings per share (Heps) are expected to increase by between 10% to 15% from the 2 147.1 cents reported last year.
Normalised Heps was expected to increase by 10% to 15%, to between 2417 and 2527 cents, from 2197 cents in 2021. Normalised Heps for 2022 was expected to increase by more than 20% excluding impairment charges on Ghana sovereign-related exposures.
The group said in a trading statement: “We previously highlighted Ghana's sovereign debt crisis as a potential risk to our 2022 performance. With greater certainty on the terms of the proposed debt exchange programme with the Ghana sovereign, we expect our credit impairments to increase significantly year-on-year, mainly due to impairments on sovereign investment securities and related exposures in the banking book.”
The group said the rest of its operations performed strongly and the 2022 results were expected to be largely consistent with guidance provided by the bank on December 7, 2022.
Group revenue for 2022 was expected to increase by mid-teens, driven by strong non-interest income growth in part due to a recovery in life insurance revenue off a low base.
Operating expense growth was expected to be in the high single digits. The 2022 cost-to-income ratio was expected to improve to the low 50s, in line with the first half 2022 ratio.
All subsidiary entities were expected to report capital levels in excess of local regulatory requirements. The results are expected to be published on March 13.
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