The Development Bank of Southern Africa (DBSA) Releases Interim Financial Results For The Period Ending September 30, 2023

Johannesburg, 30 November 2023 – The Development Bank of Southern Africa (DBSA), a key player in driving sustainable infrastructure development, has released its condensed financial results for the interim period ending September 30, 2023. The report which is available on the JSE Limited Stock Exchange News Service and DBSA website, offers insights into the DBSA's financial performance, strategies, and its role in navigating a challenging economic landscape.

The Auditor General of South Africa, has conducted a review in accordance with international standards on review engagements, expressing an unmodified review conclusion on the interim financial statements. Despite global economic challenges, the DBSA remains committed to its growth strategy, emphasising its important role in sustainable infrastructure development. The Bank aims to attract third-party funding through de-risking projects, innovative solutions, and early-stage preparation.

Key highlights from the financial results include:

  • Funding and liquidity management – the DBSA's liquidity and capital position remain robust, with a 30-day liquidity coverage ratio of 374%. The Bank continues to raise funds from diverse sources, and its loan book cash collections demonstrates resilience in a challenging environment.
  • Leverage ratio and capital adequacy - the DBSA maintains strong capital buffers, with a debt-to-equity ratio of 85%, well below the regulatory cap of 250%. The Bank's capital to assets ratio stands at 45%, ensuring it remains well-capitalised.
  • Loan asset quality and expected credit loss provisions - despite economic uncertainties and difficult operating environment, the DBSA managed its credit risk exposures proactively. Expected credit loss provisions increased by 7%, reflecting a marginal deterioration in probability of default and movement is in line with the Bank's conservative  provisioning approach. Cash collections from the loan book remain strong. The loan portfolio composition remains stable, with 72% of total portfolio rated as medium risk and 22% as high risk and the remainder as low risk.
  • Total assets - the DBSA's total asset base increased to R110 billion, a 2% increase compared to March 31, 2023 total asset base. The Bank's equity investment portfolio decreased by 5%, influenced by fair value adjustments and capital redemptions.
  • Profitability & efficiency – the DBSA maintains profitability despite challenges, with a net profit of R2.1 billion. The Bank remains efficient, achieving a total cost-to-income ratio of 22%.

Looking ahead, the DBSA remains optimistic, leveraging its strong leadership, resilient balance sheet, and a robust project pipeline to drive developmental impact. Despite the economic challenges, the Bank aims to increase its developmental impact through strategic partnerships and a focus on disbursing funds to infrastructure projects. The outlook highlights the DBSA's commitment to its mandate, contributing to Southern Africa's development and building Africa’s prosperity.


About the Development Bank of Southern Africa

The DBSA is a leading Development Finance Institution (DFI), wholly owned by the government of South Africa. Established in 1983, the DBSA is mandated to promote economic growth and regional integration by mobilising financial and other resources from national and international private and public sectors for sustainable development projects and programmes in South Africa, SADC, and the wider African continent.

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