Latest news with #KennedyBungane
IOL News
02-07-2025
- Business
- IOL News
S&P upgrades African Bank rating, affirms South African banking sector stability
African Bank store in Cape Town. The banks credit rating was upgraded by the international credit rating agency S&P Global, which expected that the bank will continued to scale and diversify in futrure, without negatively impacting Image: File S&P Global Ratings has upgraded African Bank's long-term global scale issuer credit rating to 'B+' from 'B,' with a stable outlook, and affirmed the short-term global scale rating at 'B.' - the only local bank to have its rating raised by the issuer, while the ratings of other banks were affirmed. S&P Global affirmed the ratings of Absa Bank, BNP Paribas Personal Finance South Africa, Capitec Bank, FirstRand Bank, Investec Bank, Nedbank, and the Development Bank of South Africa. 'In our view, the South African banking system is now in an expansion phase,' S&P said on its website. On African Bank, S&P said the upgrade reflected the bank's more supportive economic environment, coupled with strong capitalisation that partially compensated for its weak asset quality indicators. 'We expect African Bank will continue to scale and diversify, particularly in retail… we do not expect a significant inflow of non-performing loans from the new production,' the rating agency said. African Bank welcomed the latest S&P Global Ratings upgrade as recognition of its progress on strengthening its balance sheet, diversifying its offerings, and reaffirming its founding purpose: to make banking accessible to all South Africans,' CEO Kennedy Bungane said Wednesday. 'This upgrade acknowledges the work we have put in over the last few years and gives us further confidence we are on the right track. It reflects on our financial performance, capitalisation, and improved asset quality while expanding our offerings to our customers,' Bungane said. Video Player is loading. 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Next Stay Close ✕ He said that as the bank marked 50 years, the new rating would enhance its reputation and position it strongly towards becoming a listed institution, which was another step in it's commitment to build a customer-centric, digitally enabled diversified business that is scalable and sustainable. The S&P announcement follows hard on the heels of African Bank's interim results for the six months to March 31, 2025, which saw net profit after tax increase by 15% to R202 million. The group also reported a 20% rise in net advances to R39 billion, 6% growth in customers to 6.1 million, and non-interest income growth of 38%. 'Our growth has been driven by a disciplined approach to risk and compliance management, diversification of our balance sheet, and increased digital enhancements across the business. The Excelerate strategy is positioning us to deliver long-term value for stakeholders,' said the bank's CFO Anbann Chetti. Key strategies included leadership alignment for a listed environment, regulatory compliance, and inclusive ownership models that reflect African Bank's founding values: 'We are building a future-fit bank with the scale and agility to serve more South Africans,' Bungane said. On the local banking sector outlook, S&P said they expect cautious credit growth and moderate increases in real estate prices in the next couple of years. They expect South Africa's GDP to likely rise by 1.5% on average over 2025-2028, after only 0.6% in 2024. 'We expect investment in infrastructure, including logistics and renewable projects, will create lending opportunities for banks. We also anticipate household lending will increase at a measured pace supported by the reduction in interest rates,' the global rating agency said.
IOL News
12-06-2025
- Business
- IOL News
Only the bold can change the world
African Bank CEO, Kennedy Bungane, receiving the Ecosystem Catalyst Award at the Global Entrepreneurship Congress in Indiana from GEN President, Jonathan Ortmans. Image: Supplied. The Global Entrepreneurship Congress (GEC) returned to the US for the first time in 15 years, where it was first hosted. In 2009, Kansas City welcomed just a few hundred ecosystem stakeholders who banded together with one vision – to build a 'one global entrepreneurial ecosystem''. The movement has now quite literally mushroomed over the years and has seen thousands of ecosystem stakeholders meet annually to discuss better ways to support the development of entrepreneurs across the globe. In 2017, South Africa hosted the GEC, which welcomed over 5000 delegates from 160 countries onto our shores. Last week, the City of Indianapolis greeted 3455 participants from 141 countries, marking the 15th Global Entrepreneurship Congress under the theme, the 'Bold Change the World'. With over 148 sessions and 200 speakers, the congress was over-saturated with rich and impactful content. Some of the key highlights included a keynote fireside chat with one of the world's most renowned entrepreneurs, Mark Cuban, who advised entrepreneurs to explore unchartered territories, saying 'Go where others don't look and just start'. Many other significant highpoints of the GEC include the launch of the GEN Catalyst Index, which is a bold new initiative aimed at developing a standardised framework to assess, benchmark and elevate the performance of Enterprise Support Organisations (ESOs) worldwide. GEN and Startup Genome also launched the Aptitudes and Policies for Exponential Entrepreneurship (APEXE), which is aimed at helping national governments evaluate and enhance the performance of national policy action in growing tech startup ecosystems. The first instalment of the APEXE Nations Ranking offers a balanced scorecard of the performance of each country's past entrepreneurial innovation policies. At the awards evening, African Bank, a local bank in South Africa, was awarded the prestigious Ecosystem Catalyst Award – in recognition reserved for an organisation that demonstrates outstanding commitment to driving long-term, inclusive growth in their local entrepreneurship ecosystem, through programmes and education. From championing township entrepreneurs to pioneering new financial models for underserved communities, the bank continues to demonstrate what it means to not only fund ideas – but to believe in the people behind them. Now here's the kicker. In September 2026, the global community will convene in Cape Town for the 2nd Global Entrepreneurship Congress (GEC+) Africa, which will welcome over 2000 delegates with arms wide open from across the continent onto our shores, in addition to a few other hand-picked international delegates. The GEC+Africa promises to promote inclusive and sustainable growth; accelerate digital transformation; improve access to finance; advocate for supportive policies and strengthen pan-African collaboration. Many participants I met at the congress simply craved stability. Around the world, they urged their government leaders to also prioritise transparency and provide clarity. As an example, Cuban encouraged entrepreneurs to just be entrepreneurs and focus on what they do best. As he said, 'if your business succeeds, politicians will come to you, and you must build a business that outlasts any one politician''. I left GEC feeling totally inspired and echoed the words of Jonathan Ortmans, the GEN president, 'entrepreneurs are the new diplomats of the world'. Kizito Okechukwu is the co-Chair of the Global Entrepreneurship Network (GEN) Africa; and Executive Head of 22 On Sloane, Africa's largest entrepreneurship campus Kizito Okechukwu Kizito Okechukwu is the executive head of 22 On Sloane, Africa's largest entrepreneurship campus and co-chair of the Global Entrepreneurship Network (GEN) Africa. Image: Supplied.
IOL News
28-05-2025
- Business
- IOL News
African Bank reports 15% profit growth, paving the way for a bold future
African Bank, which has future plans to list on the JSE, reported a 15% surge in group net profit after tax, reaching R202 million for the six months ended March 31, 2025, driven by its ambitious Excelerate strategy as it aims for a JSE listing ahead "The results reflect the growing impact of its Excelerate strategy, as the Group continues its transformation into a diversified, fully-fledged banking institution serving both personal and business customers," African Bank said. The robust results came despite the South African economy remaining under pressure due to persistent unemployment, structural inefficiencies, and an increasing burden on welfare spending by the government. "However, the easing of inflationary pressure, further aided by the South African Reserve Bank's decision to cut and pause further interest rate reductions, has presented a bit of cautious optimism in the market," African Bank said. CEO Kennedy Bungane hailed the results as a testament to the bank's strategic pivot. 'These figures are more than a financial milestone; they reflect our commitment to empowering South Africans, from township entrepreneurs to families investing in sustainable solutions like solar power,' he said. Celebrating its 50th anniversary, African Bank is positioning itself as a cornerstone of inclusive finance, with a 6% increase in its customer base to 6.1 million and a 20% rise in net advances to R39.1 billion. The bank's Business and Commercial lending arm saw a striking 49% growth in advances, bolstered by strategic acquisitions, including Sasfin's capital equipment finance business, following last year's purchase of its commercial property finance division. These moves have strengthened African Bank's foothold in the small and medium enterprise (SMME) sector, a critical driver of South Africa's economy. Financially, the bank maintained a robust funding base of R36.3 billion, up 8%, with customer deposits accounting for 91% of the total. A strong capital adequacy ratio of 28% - well above regulatory requirements - underscores its stability. Non-interest income soared 39% to R909 million, fueled by growing adoption of digital offerings like the MyWORLD transactional account and credit card services. Improved risk management and a shift to secured lending reduced credit impairment charges by 10%, lowering the credit loss ratio to 5.3%. Chief Financial Officer Anbann Chetti said the results validate the group's strategy and operational focus, 'Our Excelerate strategy is reshaping African Bank into a scalable, future-ready institution. We're delivering value not just for shareholders but for employees and communities.' As part of its pre-initial public (IPO) offering roadmap, African Bank launched iKamva Lethu, an employee share ownership scheme allocating 10% of its shares to staff. "Work is also well underway on the next phase of our pre -IPO journey, which includes the finalisation of amanagement share scheme, and the creation o fretail BEE (Black Economic Empowerment) scheme, following the decision of theGovernment Employees Pension Fund to be a long term shareholder beyond the IPO of the bank. These efforts will culminate in our eventual listing targeted for post the release of our FY27 results, market conditions permitting," Bungane said. Looking ahead, African Bank plans to expand secured lending, launch a digital SMME lending platform, and invest in digital infrastructure, compliance, and cybersecurity. Bungane said, 'This journey is about building a bank that belongs to South Africans, one that serves with integrity and purpose. As we prepare for a future listing, we remain guided by our founders' bold vision and the needs of the communities we serve.' BUSINESS REPORT
Zawya
27-05-2025
- Business
- Zawya
African Bank's acquisition strategy strengthens business and commercial offerings
African Bank Holdings Limited (ABHL) has reported robust interim results for the six months ending 31 March 2025, with Group net profit after tax climbing 15% year-on-year to R202m. These results underscore the momentum of its Excelerate strategy, as the Group accelerates its evolution into a diversified, full-service bank catering to both personal and business clients. Chief executive officer Kennedy Bungane said the Group's performance affirms the strategic choices made in recent years and underscores a return to African Bank's original mission of financial inclusion. 'These results are more than a financial milestone, they mark a reaffirmation of purpose,' said Bungane. 'They show that our customer-first, innovation-led approach is reaching South Africans where it matters most. Whether it's a township entrepreneur accessing capital or a family investing in solar power, African Bank is delivering impact.' Net advances grew 20% to R39.1bn, with a strong 49% surge in Business and Commercial advances. The Bank also reported a solid 6% increase in its customer base to 6.1 million, driven by growth in both its Personal Banking and Alliance Banking platforms. 'Our shift toward a broader product mix, particularly into secured lending, is building resilience into our business while unlocking new revenue streams,' added Bungane. 'As we celebrate 50 years since our founding, we are actively shaping a future where more South Africans have access to the capital, tools and services they need to thrive.' Diversification drives growth African Bank's diversification drive includes the successful acquisition of Sasfin's capital equipment finance business, which follows last year's acquisition of its commercial property finance division. These additions strengthen the Bank's Business and Commercial proposition and expand its footprint in the SMME sector. The Group continues to maintain a healthy funding base, which grew by 8% to R36.3bn. Customer deposits remain the primary source of funding, comprising 91% of the total. The Group's total capital adequacy ratio stands at 28%, well above regulatory minimums. Non-interest income grew by 39% to R909m, driven by increased uptake of the Bank's digital offerings, including the MyWorld transactional account and credit-card services – demonstrating increasing trust in the Bank and its services. Credit impairment charges declined by 10%, bringing the credit loss ratio down to 5.3%, thanks to strengthened risk management and a shift towards secured lending. Chief financial officer Anbann Chetti said the results validate the Group's strategy and operational focus: 'Our Excelerate strategy is not only delivering earnings growth but also reshaping the fundamentals of our business. We are building a scalable, diversified, and future-ready financial institution that is creating real value for shareholders, employees and society.' As part of its Pre-IPO roadmap, African Bank launched its employee share ownership scheme, iKamva Lethu, allocating 10% of the bank's shares to staff. Additional broad-based empowerment initiatives, including a retail BEE offering and a management scheme, are under development. Looking ahead, African Bank will expand its secured lending offerings, launch a digital SMME lending platform, and invest further in digital infrastructure, compliance, and cybersecurity. Bungane concluded: 'This journey is about building a bank that belongs to South Africans, one that serves with integrity and purpose. As we prepare for a future listing, we remain guided by our founders' bold vision and the needs of the communities we serve.'
