Zweli Manyathi, interim group CEO of African Bank. He said a operational consolidation strategy will restore earnings growth at the bank.
African Bank, which has seen its profits decline every year since 2022, has blamed a R624 million loss for the six months to March 2026 on the impact of transformation costs, integration activities, higher impairments, and a challenging operating environment.
Explaining the loss on Thursday, interim group CEO Zweli Manyathi said the bank has just exited their “Accelerate 2025 strategy,” wherein it transitioned into a diversified retail and commercial banking platform, through several acquisitions, including Ubank, Grindrod Bank, and Sasfin’s Capital Equipment Finance (CEF) and Commercial Property Finance (CPF) businesses, and growth initiatives such as launching a business banking division.
In an interview with Business Report, Manyathi said they plan to arrest the interim loss, and despite the earnings pressure, the balance sheet remains solid, with a 25.8% capital adequacy ratio well above the minimum regulatory requirements, while liquidity reserves increased sharply to R6.6 billion from R3.7bn.
This was supported by a R700m issue in the debt capital markets.
