Company news in brief
Absa’s profits edge upSA's fourth-biggest bank by market value, Absa, has hailed its "resilience" in 2023 despite its latest annual results showing revenue growth only modestly outpaced inflation, while net profit also only edged up.
The bank said yesterday that net profit rose just 0.7% to R22.56 billion for the year to end-December 2023 while headline earnings increased about 0.5% to just over R20 billion. The group still upped its total dividend by 5% to R13.70.
Absa achieved total income growth of just over 8% to R104.6 billion, helping the group cross the R100 billion revenue threshold for the first time, thanks to stronger growth in its rest of Africa operations. Nevertheless, that was still only modestly ahead of South Africa's 6% inflation rate for 2023.
Its customer base expanded 4% to 12.2 million in 2023, and customer experience scores, which measure the quality of service experienced by customers, increased across all business units.
Absa expects high single-digit revenue growth in 2024, driven by both net interest income and non-interest income growth, though this assumes there are no unforeseen events.
The group's credit loss ratio is likely to remain above its through-the-cycle target range of 75 to 100 basis points but improved slightly year-on-year as interest rates begin to moderate. – Fin24
Chambishi copper smelter scales back
China Nonferrous Metal Mining Corp's Chambishi Copper Smelter in Zambia has cut one-fifth of its production due to power shortages in the country, two sources with knowledge of the matter told Reuters.
The plant, which produces about 250 000 metric tons of copper per year, is one of the biggest processing facilities in Africa's second-largest copper producer.
Zambia generates about 87% of its electricity from hydropower, and lower water levels due to its current drought, the worst in two decades, have curbed power generation, the managing director of state-owned power utility Zesco said.
Zesco said last week it would start rationing electricity supplies from March 11. However, the sources said that Chambishi had already reduced capacity as of last week.
The power shortage comes amid a gradual decline in Zambia's copper production due to lack of new investment at some operations, including Konkola Copper Mines and Mopani Copper Mines.
Output of the metal slumped to about 698 000 tons in 2023 from 763 000 tons the prior year, according to data from the Zambia Chamber of Mines. - Reuters