African Bank’s customer base skyrockets to 4 million due to its successful diversification strategy.
According to a recent announcement from African Bank, 2023 has been marked by significant growth and positive financial performance.
Impressively, the bank has experienced a substantial expansion in its customer base, now catering to a staggering four million customers, a remarkable 158% increase from the previous year. Furthermore, an impressive number of over one million customers are actively benefiting from the convenience and efficiency of the MyWORLD transactional account.
African Bank now has a solid foundation for positively scaling the business, building on the client base utilising the branch network with innovative digital solutions which effectively “become a branch in your pocket."
- African Bank Group CFO, Anbann Chetti, 2023
African Bank’s remarkable growth can be attributed to the successful implementation of a robust platform that enables the bank to fulfill its mission of transforming lives and becoming the trusted financial partner for underserved SMMEs, business owners, and its expanding customer base.
This year's financial results reflect our strong and audacious commitment to strategic growth and diversification. […] African Bank from a mono-line credit lender to a fully-fledged retail and business bank. Our net profit is a testament to our resilience and sustainability, and our dedication to realizing the enduring vision of our founders.
- Kennedy G. Bungane, African Bank Group CEO, 2023
By implementing an innovative digital retail and commercial platform, African Bank has effectively diversified its funding base. This strategic move has allowed retail and business deposits to play a significant role in the bank’s funding, now accounting for an impressive 87% of the total R35 billion.
Despite facing an increase in the repo rate, African Bank has demonstrated its remarkable operational performance by successfully lowering its cost of funding to an impressive 7.3%.
Moreover, there was a remarkable surge in non-interest income, reaching a staggering R1.6 billion, which can be attributed to the exponential growth of our customer base and their transactions. Additionally, the business banking division made a significant contribution of R682 million in total net revenue within just 11 months.
With robust financial health, African Bank achieved a net profit after tax of R505 million, making these Annual Financial Results particularly noteworthy as it is the first time the bank has unveiled its financial outcomes since becoming a fully-fledged retail and business bank.
With these impressive outcomes, African Bank remains dedicated to empowering individuals and driving greater financial inclusivity for those historically excluded from the economic mainstream.
About African Bank
African Bank has 3 500 African Bankers across 389 branches and four Contact Centres in their daily efforts to make it easier and more rewarding for consumers to manage their financial journey. African Bank is dedicated to creating relevant products that help to uplift South Africans, including loans, investment and insurance products. It recognizes the significance of achieving financial independence and is dedicated to assisting clients in initiating a positive transformation in their lives by providing a diverse selection of financial products that offer support, protection, and peace of mind.
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