South Africa’s biggest retail bank Absa increased full-year headline earnings per share by about 19% and played down the potential impact of a slowdown in the domestic economy.
Absa, majority-owned by Britain’s Barclays, said on Tuesday headline EPS rose to R14,01 in 2007 from R11,81 while headline earnings increased to R9,413-billion from R7,872-billion.
Headline EPS is the key profit measure for South African firms and excludes non-trading, capital and certain extraordinary items.
Absa said impairment losses grew to 0,58% from 0,45%, as debt-laden South Africans struggle under the weight of a series of interest rate hikes since June 2006.
The interest-rate environment and a power crisis that has gripped South Africa since early last month has raised fears the economy could be headed for a dramatic slowdown — or even recession.
But Absa said it was well-placed to deal with a shift away from the consumer-driven economic boom of the last several years. – Reuters