| Tue 23 Jun 2009, 9:01 | | ASA/ABSP - ABSA Group Limited/ABSA Bank Limited - |
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JSE ASA ABSP
ABSP AMAGB
ASA/ABSP - ABSA Group Limited/ABSA Bank Limited - Trading update
ABSA GROUP LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/003934/06)
ISIN: ZAE000067237
JSE share code: ASA
(Absa Group or Absa)
ABSA BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/004794/06)
ISIN: ZAE000079810
JSE share code: ABSP
Issuer code: AMAGB
(Absa Bank)
Trading update
In terms of paragraph 3.4 (b) of the Listings Requirements of the JSE Limited
("the JSE Listings Requirements"), an issuer is required to publish a trading
statement as soon as it is satisfied that a reasonable degree of certainty
exists that Headline Earnings Per Share (HEPS) and/or Earnings Per Share (EPS)
for the next period to be reported on are expected to differ by at least twenty
per cent (20%) from those of the previous corresponding period.
At the annual general meeting held on the 21 April 2009, the Group cautioned
shareholders that trading conditions in the current weak economic environment
had become challenging. The financial performance of the Group had been
impacted by increasing impairment levels, a contraction of interest margins and
a reduction in the value of investment portfolios.
Accordingly, shareholders are advised that the HEPS of Absa Group, for the six
months ending 30 June 2009, are expected to be between 15% and 25% lower than
for the six months ended 30 June 2008 whilst EPS are likely to range between 25%
and 35% lower for the same period.
The HEPS of Absa Bank, for the six months ending 30 June 2009, are expected to
be between 25% and 35% lower than for the six months ended 30 June 2008 whilst
EPS are likely to range between 35% and 45% lower for the same period.
The difference between the decline in EPS and HEPS is explained by:
* A one-off gain of R636 million following the issue of shares as part of the
VISA IPO, which was included in EPS for the prior corresponding period;
and,
* The impairment of the carrying value of the associate investments that were
acquired in December 2008 as a result of the failure of certain clients to
honour their commitments in respect of share futures transactions (Single
Stock Futures). The quantum of the said impairment remains to be concluded
and has necessitated this range of earnings guidance.
The Group and Bank remain capitalised well above the minimum regulatory
requirements and above Board approved targets.
The interim results will be announced on SENS on 3 August 2009.
The forecast financial information, on which this trading statement is based,
has not been reviewed or reported on by the auditors of Absa Bank or Absa Group.
Johannesburg
23 June 2009
Enquiries:
Jacques Schindehutte
Group Executive Director
Tel: +27 11 350 4850
Fax: +27 11 350 8433
Email: jacquessc@absa.co.za
Nerina Bodasing
Head: Investor Relations
(+2711) 350-2598
(+2782) 940-7505
E-mail: Nerina.Bodasing@absa.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 23/06/2009 08:00:17 Produced by the JSE SENS Department.
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implicitly, represent, warrant or in any way guarantee the truth, accuracy or
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employees and agents accept no liability for (or in respect of) any direct,
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howsoever arising, from the use of SENS or the use of, or reliance on,
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