Absa Group (ABG) H2 2025 earnings summary

Executive summary

• Headline earnings grew 12% to nearly ZAR 25 billion, with revenue up 5% and ROE improving to 15%.

• Africa Regions and CIB drove growth, with Africa Regions contributing 31% of group earnings and customer numbers up 14%.

• Maintained strong capital position with CET1 ratio at 12.7% and net customer loans up 6% to ZAR 1.35 trillion.

• Strategic focus on customer-centricity, operational excellence, Pan-African integration, and new leadership appointments.

• Productivity initiatives delivered ZAR 1.7 billion in cost savings, targeting ZAR 5 billion by 2025.

Financial highlights

• Headline earnings up 12% to almost ZAR 25 billion, driven by non-interest income and lower credit impairments.

• Total revenue grew 5% to ZAR 116 billion; net interest income up 4%, non-interest income up 7%.

• Operating expenses increased 6%, with cost-to-income ratio at 53.8%.

• Credit impairments decreased 6% to ZAR 13.4 billion; credit loss ratio improved to 0.88%.

• Dividend per share increased 12%; net asset value per share up 8%.

Outlook and guidance

• 2026 guidance: mid-single-digit revenue growth, with non-interest income outpacing net interest income.

• Customer loans and deposits expected to grow mid- to high-single digits; credit loss ratio to improve into lower half of 75-100 bps range.

• Operating expenses to grow low- to mid-single digits, with positive operating jaws and ROE around 16%.

• CET1 ratio expected at the top end of the target range; dividend payout ratio to remain at 55%.

• Rand appreciation anticipated as a headwind to group revenue and earnings in 2026.