Absa Group reported a resilient set of results for the six months ended 30 June 2026, with headline earnings rising 8% to R12.8 billion and return on equity improving to 15%, according to Group Financial Director Deon Raju.
Commenting on the performance, Raju noted that the Group had navigated a complex environment marked by geopolitical uncertainty, shifting interest rate expectations and margin pressure across several markets.
“Against a backdrop of continued geopolitical uncertainty, changing interest rate expectations and margin pressure in several of our markets, we delivered a solid financial performance,” Raju said.
“Revenue growth was supported by continued momentum in non-interest income, while disciplined cost management and an improved credit performance underpinned earnings growth. Our capital position remains strong, with the CET1 ratio ending the period above the upper end of our target range, enabling us to continue investing in growth opportunities while maintaining an attractive dividend payout for shareholders.”
Group revenue increased 4% to R58.8 billion, driven by a 6% rise in non-interest income on the back of stronger fee and commission income as well as a solid contribution from Global Markets trading.
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Net interest income grew more moderately at 3%, as balance sheet expansion of 6% in customer loans and 5% in deposits was partially offset by margin compression, particularly in Africa Regions and Corporate and Investment Banking South Africa.
Operating costs rose 4% to R31.4 billion as Absa continued to invest in strategic initiatives while maintaining cost discipline. Pre-provision profit accordingly increased 4% to R27.4 billion. The cost-to-income ratio edged slightly higher to 53.4%.
Credit performance remained resilient, with impairments declining 1% to R7.1 billion. The credit-loss ratio improved to 94 basis points from 100 basis points in the prior period, supported by better customer payment behaviour in Personal and Private Banking, while impairments in Business Banking and Corporate and Investment Banking normalised.
Absa’s capital position stayed robust, with the Common Equity Tier 1 ratio at 12.8%, above the upper end of the Board’s 11.0%–12.5% target range. The Group declared an interim dividend of 850 cents per share, up 8%, reflecting confidence in its earnings trajectory and balance sheet strength.
