ABSA Group Provides medium-term financial targets
ABSA GROUP LIMITED
(formerly Barclays Africa Group Limited)
Incorporated in the Republic of South Africa
(Registration number: 1986/003934/06)
Share Code: ABG
(‘Absa Group’ or ‘the Group’)
ABSA GROUP PROVIDES MEDIUM-TERM FINANCIAL TARGETS
Absa Group hereby informs the market of our medium-term financial targets. These are based on our
current expectations for economic growth in South Africa and our presence countries in the rest of Africa.
Barring any unforeseen major macroeconomic or regulatory developments, our key targets include:
1) As part of our strategy emphasising growth and regaining leadership in our core businesses, we aim
to grow our revenue faster, on average, than the SA bank sector from 2019 to 2021, with an
improving trend over time and within appropriate risk appetite parameters;
2) Given this growth and continued cost management, we aim to consistently reduce our normalised
cost-to-income ratio to reach the low 50s by 2021; and
3) We aim to achieve a normalised group return on equity of 18% to 20% by 2021, while maintaining an
unchanged dividend policy.
We also reiterate our guidance for 2018, including that our normalised return on equity is expected to
increase slightly from our 16.5% in 2017.
7 December 2018
+27 (0) 72 576 2713
Lead Independent Sponsor:
J.P. Morgan Equities South Africa Proprietary Limited
Absa Bank – Corporate and Investment Bank
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