Find Out How Absa Lost 750,000 Customers

Updated on 30 July 2014

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Absa loses 750,000 customers in SA

Absa Bank (Barclays Africa) reduced its customer numbers in South Africa by almost 750,000 in the interim reporting period ended June 2014, reported Business Tech.

Customer numbers in SA declined to 9.235 million, from 9.983 million at the same period in 2013, and down from 9.44 million in December 2013.

The bank had 12.1 million customers in 2011.

Absa closed 60 outlets over the past year in SA, to 804, and from 829 in December, with ATMs down to 9,588, from 9,630 in the prior year, and grew employee numbers during the period, to 31,922, from 31,724 in June 2013.

Business banking

For business banking in SA, Absa said that the overall number of customers decreased by 2.3% to 384,078 (30 June 2013: 392,979) mainly in the enterprise segment.

Information technology costs rose 8% to R1 billion, as efficiency gains offset the impact of rand depreciation, Absa said.

Overall, the bank said that headline earnings grew 2% to R4 billion, while pre-provision profit increased 0.4% to R9.4 billion.

The bank declared an interim and special dividend of 1 231,7 cents.

Revenue grew 5% to R21.4 billion, as net interest income rose 7% to R12.3 billion.

Absa loses 750,000 customers in SA  [Business Tech]

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