| Fri 31 Jul 2009, 16:57 | | ASA/AMAGB - ABSA Group Limited/ABSA Bank Limited - Trading Update |
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JSE ASA ABSP
ABSP AMAGB
ASA/AMAGB - 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
Issuer code: AMAGB
(Absa Group)
ABSA BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/004794/06)
ISIN: ZAE000079810
JSE share code: ABSP
(Absa Bank)
TRADING UPDATE
In a trading update released on 23 June 2009, Absa Group advised shareholders
that the headline earnings per share (HEPS) of Absa Group for the six months
ending 30 June 2009 was expected to be between 15% and 25% lower than for the
six months ended 30 June 2008, while the earnings per share (EPS) was 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 was expected to be between 25% and 35%
lower than for the six months ended 30 June 2008, while the EPS was likely to
range between 35% and 45% lower for the same period.
It was reported that the difference between the decline in EPS and HEPS can
mainly be explained by:
- the corresponding prior period included a one-off gain of R636 million,
following the issue of shares as part of the Visa Inc initial public
offering, which was included in EPS; and
- the impairment of the carrying value of the associate and available for
sale investments that were acquired in December 2008 as a result of the
failure of certain clients to honour their commitments in respect of
single stock futures transactions.
It was noted that the quantum of the impairment to be recognised against these
investments remained to be concluded. Management has subsequently performed a
detailed review and valuation of each of these investments and the board
concluded that an impairment of R1 095 million (pre-tax) should be recognised
to reduce the carrying value of these investments from R1 540 million to R445
million.
The finalisation of this adjustment today has resulted in the reduction in EPS
falling outside of the range of guidance previously provided. The reduction in
EPS to be reported on Monday, 3 August 2009 has thus increased to 38,9% down
for Absa Group and 49,9% down for Absa Bank. HEPS has not been impacted by
this adjustment, with a reduction in HEPS of 19,4% for Absa Group and 25,7%
for Absa Bank, which is within the range of guidance previously provided.
The Absa Group and Absa Bank interim results for the six months ended 30 June
2009 will be released on Monday, August 2009.
Johannesburg
31 July 2009
Enquiries:
Jacques Schindehutte
Group Executive Director
Absa Group Limited
5th Floor, Absa Towers East, 170 Main Street, Johannesburg, 2001
Tel: +2711 350-4850, Fax: +2711 350-8433
E-mail: jacquessc@absa.co.za
Sponsor:
JP Morgan Equities Limited
Date: 31/07/2009 16:57:01 Produced by the JSE SENS Department.
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