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Banking

Absa bank reports 5% rise in profit

South African lender Absa Group Ltd reported a 5% rise in first-half profit on Tuesday, while its core retail business managed to grow despite a faltering domestic economy.

Absa, once a market leader, has been trying to win back ground lost under the stewardship of former parent Barclays following its split from the British lender in 2017. But it is trying to turn around amid intense competition and a weak South African economy.

The bank said its headline earnings per share (HEPS) — the main profit measure in South Africa — rose 5% to 918.4 cents ($0.6019) for first-half, against 877.8 cents in 2018. When normalised to account for the impact of the Barclays separation, HEPS was up 3%.

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