African Bank's profit slumps almost a third as bad debts double

African Bank's annual profit has slumped by almost a third after it was forced to about double its provisions to cover souring loans even as it ramped up advances.

The group, which was rescued after the near collapse of its former parent African Bank Investments (Abil), said profit attributable to shareholders plunged 31.4% to R505 million in the year to end September. The drop in profit came as net loan advances rose 41% to almost R32 billion.

"Our net profit is a testament to our resilience and sustainability, and our dedication to realising the enduring vision of our founders," CEO Kennedy Bungane said in a statement.