Absa headline earnings take a nosedive

ABSA Group said on Friday its full-year headline earnings per share were expected to fall 25percent to 35percent, negatively impacted by the effect of adverse market conditions on its investment banking cluster.

ABSA Group said on Friday its full-year headline earnings per share were expected to fall 25percent to 35percent, negatively impacted by the effect of adverse market conditions on its investment banking cluster.

The banking group, which is majority-owned by Britain's Barclays, said EPS was likely to be between 35percent to 45percent lower in the year to end-December.

"The difference between the decline in headline EPS and EPS is largely attributable to the impairment of investments acquired through single stock futures trading defaults, which is excluded from headline earnings in 2009," it said.

Absa said the value of investments in the private equity portfolio had declined over the period, resulting in a negative valuation adjustment in its income statement. - Reuters

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