Absa Group posts 8% rise in headline earnings to R12.8bn

Absa Group has delivered a solid set of interim results for the six months ended 30 June 2026, reporting an 8% increase in headline earnings to R12.8 billion ($799 million), supported by revenue growth of 4% to R58.8 billion ($3.6 billion).

The performance, achieved against a backdrop of elevated geopolitical uncertainty, shifting interest rate dynamics and mixed economic conditions across its markets, lifted the Group’s return on equity to 15% from 14.8% in the prior period. The board declared an interim dividend of 850 cents per share, also up 8%.

Pre-provision profit rose 4% to R27.4 billion ($1.7 billion), while credit impairments edged down 1% to R7.1 billion. The credit-loss ratio improved to 94 basis points from 100 basis points. Operating expenses grew 4% to R31.4 billion as the bank continued to invest in strategic initiatives, resulting in a cost-to-income ratio of 53.4%.

Net interest income increased 3%, supported by 6% growth in customer loans and 5% growth in deposits, though margin compression in Africa Regions and competitive pricing in Corporate and Investment Banking partially offset the benefit of balance-sheet expansion. Non-interest income performed more strongly, rising 6% on higher fee and commission income and solid trading results from Global Markets.

Group Chief Executive Officer Kenny Fihla said the results reflected the strength of Absa’s franchise and early progress on its strategy. “We continue to grow our customer franchise, delivering disciplined execution across our businesses and maintaining a strong capital position. Our healthy client franchise growth and the expected stabilisation of net interest margins position us well to accelerate sustainable growth over the medium term.”

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All three business units are now reported on a pan-African basis for the first time. Corporate and Investment Banking delivered headline earnings of R6.2 billion, up 1%. Personal and Private Banking recorded the strongest growth, with earnings rising 12% to R4.1 billion, driven by active customer growth, digital adoption and lower impairments. Business Banking grew earnings 5% to R2.7 billion on solid lending and deposit growth.

Financial Director Deon Raju noted that the Group’s capital position remained robust, with a Common Equity Tier 1 ratio of 12.8%, above the upper end of the board’s 11.0–12.5% target range. “Revenue growth was supported by continued momentum in non-interest income, while disciplined cost management and an improved credit performance underpinned earnings growth.”

Absa’s customer base expanded to 13.4 million. IT-related investment increased 7% to R8.8 billion, focused on digital infrastructure, cybersecurity, cloud, data and artificial intelligence capabilities.

Looking ahead, the Group expects low- to mid-single-digit revenue growth for the full year, with the credit-loss ratio remaining within its through-the-cycle target range of 75–100 basis points and return on equity around 15%.