African Bank has reported a profit of $28.8mn in its 12 months to September 30, up from $28.7mn in the prior year.

The achievement, the South African financial institution said on November 26, was made despite a tough operating environment in the continent's most industrialised and largest economy.

It described its capital adequacy position as strong at 31.4%, an increase from 29.5% in 2023. This was bolstered by successful Tier 2 bond issuances, exceeding the bank's regulatory and internal minimums.

Its funding base is stable having further diversified with business and retail deposits making up 92% compared to 87% of total funding of $1.9.56bn versus $19.07bn in 2023.

IPO delayed till at least late 2027

African Bank had planned to list on the Johannesburg Stock Exchange in 2025 but has moved the initial public offer (IPO) to late 2027 or beyond. 

It now aims to offer less than half its share capital to investors when it eventually debuts on the bourse, News24 wrote on November 26. This is because the Government Employees' Pension Fund has agreed to stay on as an anchor investor in the lender beyond the envisaged listing.

"African Bank aims to list post-November 2027, market conditions allowing," CEO Kennedy Bungane told News24.

"In the pre-IPO phase, we are going to invite existing shareholders to consider either selling down or exiting to help facilitate the BEE [Black economic empowerment] and management schemes."

BEE is an initiative by the South African government which mandates companies operating in the country to sell part of their shareholding to Blacks who were economically marginalised in the more than 100 years of colonialism and apartheid.