| Fri 4 Dec 2009, 14:37 | | ASA / ABSP - ABSA Group Limited / ABSA Bank Limite |
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JSE ABSP ASA
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
Issuer code: AMAGB
(Absa Group; the Group)
ABSA BANK LIMITED
(Incorporated in the Republic of South Africa)
(Registration number: 1986/004794/06)
ISIN: ZAE000079810
JSE share code: ABSP
(Absa Bank; the 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.
Accordingly, shareholders are advised that:
Absa Group`s HEPS for the year ending 31 December 2009 are expected to be
between 25% and 35% lower than that reported for the previous financial year.
EPS for the same period are expected to be between 35% and 45% lower than for
the year ended 31 December 2008.
Absa Bank`s HEPS for the year ending 31 December 2009 are expected to be between
25% and 35% lower than that reported for the previous financial year. EPS for
the same period are expected to be between 35% and 45% lower than for the year
ended 31 December 2008.
The difference between the decline in HEPS and EPS is largely attributable to
the impairment of investments acquired through single stock futures trading
defaults, which is excluded from headline earnings in 2009.
The financial performance of the Group has been particularly impacted by the
effect of adverse market conditions on its investment banking cluster. The value
of investments in the private equity portfolio has declined over the period,
resulting in a negative valuation adjustment in the income statement.
Additionally, difficulties reported by Blue Financial Services Limited have
necessitated that the Group consider a further impairment of this investment and
related credit exposures at year-end.
While the business environment remains under pressure and asset growth is
constrained, the remainder of the business clusters have performed in line with
the guidance communicated at the Group`s interim results. There has been an
improvement in credit portfolios and as a result, no further deterioration in
the Group`s impairment ratio, relative to that reported at the half-year, is
expected for the full year.
The Group and Bank remain capitalised well above the minimum regulatory
requirements and above board-approved targets.
The forecast financial results, on which this trading statement is based, have
not been reviewed or reported on by Absa Bank or Absa Group`s auditors in
accordance with paragraphs 3.4(b)(vi)(1)(aa) or 3.4(b)(vi)(1)(bb) of the JSE
Listings Requirements.
Johannesburg
4 December 2009
Enquiries:
Jacques Schindehutte
Group Executive Director
Tel: +27 11 350 4850
Fax: +27 11 350 8433
Email: jacquessc@absa.co.za
Sponsor:
J.P. Morgan Equities Limited
Date: 04/12/2009 14:21:02 Produced by the JSE SENS Department.
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