Absa Group has reported strong earnings growth for the first half of 2025, with headline earnings rising 17% to R11.9 billion.
The performance was driven by lower credit impairments, steady revenue growth, and solid execution of strategic priorities.
Speaking today during a virtual press conference,newly appointed Group Chief Executive Officer Kenny Fihla said that revenue grew by 5% to R56.5 billion, while pre-provision profit increased 4% to R26.4 billion. Credit impairments dropped by 14% to R7.2 billion, improving the Group’s credit-loss ratio to 100 basis points, down from 123 bps last year.
He further noted that return on equity also strengthened to 14.8%, and shareholders will receive a 15% higher dividend per share at 785 cents.
Fihla said the results highlight the success of Absa’s diversified business model.
“Our earnings show clear progress on our priorities, including operational reorganisation, divisional alignment, and enhanced client focus. With operations in 16 countries, we are well-positioned for sustainable growth,” he said.
While the operating environment remains competitive, our diversified footprint, digital transformation, and customer focus give us confidence in continued strong performance,” said Fihla.
According to Group Financial Director, Deon Raju, Absa’s performance was anchored by stronger trading income, improved credit quality, and disciplined cost management.
“We are already halfway to achieving our R5 billion savings target set for 2027 through productivity initiatives,” Raju noted.
Raju Said that key drivers for earnings growth included a 14% reduction in impairments, thanks to tighter lending standards and better collections, growth in non-interest income, particularly from trading activities, ongoing productivity programmes, with R2.4 billion in savings achieved so far.
He further notes that personal and private banking earnings rose 23% to R3.2 billion, largely due to reduced credit impairments.
The unit is investing heavily in digital banking, with a focus on AI, mobile platforms, and cybersecurity.
Business Banking Fell 12% to R1.7 billion due to higher impairments and subdued revenue , Corporate & Investment Banking: Delivered 10% growth to R6.4 billion, supported by strong trading revenue and lower impairments.
Absa Regional Operations (Retail & Business Banking): Jumped 35% to R1.1 billion, boosted by customer acquisition and fee income growth.
Absa’s customer base grew to 12.8 million, with digitally active customers up 8% to 5 million. The launch of the Kiganjani App in Tanzania has been one of the Group’s major digital milestones, making banking more accessible to customers across Africa.
The Group increased IT-related investment by 5% to R8.2 billion, focusing on digital platforms, AI-driven solutions, and stronger cybersecurity measures.
Alongside financial growth, Absa is pushing forward with its ESG and sustainable finance strategy, targeting high impact sectors such as industrial decarbonisation and infrastructure investment.
Economic conditions remain challenging, with South Africa’s GDP expected to grow only 0.9% in 2025. However, Absa forecasts stronger momentum across its Africa operations, with regional GDP projected to rise 4.8%.
For the full year, Absa expects mid-single digit revenue growth and a return on equity of around 15%.
The bank also anticipates Africa’s earnings to grow faster than South Africa’s, supported by ongoing reforms, lower inflation, and infrastructure investments.