ABSA Group’s share price plunged more than 9.5% on Thursday, to close at R153.78 a share following a voluntary trading update for the six months ending 30 June 2024, issued on Sens after the market closed on Wednesday.
The banking group cautioned that its headline earnings for the first half of 2024 could drop by mid- to high single-digits, while it expects low single-digit revenue growth for the period.
“We expect mid-single digit revenue and operating expense growth, producing a broadly similar cost-to-income ratio to 2023’s 53.2%, and a RoE [return on equity] of 14% to 15% for 2024 from 14.4% last year,” Absa said in the trading update. – moneyweb.co.za