Absa reported robust half‑year results on the strength of its South African operations, announcing a 4% rise in revenue to R58.8 billion for the six months to 30 June 2026. The pan‑African lender said South Africa, together with Kenya and Ghana, accounted for more than 80% of group profit, with the South African business alone delivering a substantial uplift in earnings.
Key numbers and dividend
Headline earnings rose 8% to R12.8 billion, while headline earnings per share (HEPS) increased 7.9% to 1 545.4 cents. The group declared a dividend of 850 cents per share, an 8% increase on the prior period.
| Metric | Half year (to 30 June 2026) |
|---|---|
| Revenue | R58.8 billion |
| Operating costs | R31.4 billion |
| Headline earnings | R12.8 billion |
| HEPS | 1 545.4 cents |
| Dividend | 850 cents per share |
South Africa offsets weaker Africa results
The group's South African operations produced headline earnings of R9.19 billion, a 17% increase and the central factor behind the stronger group performance. That gain helped offset a roughly 10% decline in profit from Absa's other African businesses, where earnings were hit by lower interest rates in markets such as Ghana and Kenya and by volatility in the first half of the year.
Group CEO Kenny Fihla highlighted improving credit quality and customer behaviour as contributors to better results in the retail businesses. He said the Personal and Private Banking division recorded a 12% earnings increase, driven by higher customer numbers and progress in moving clients from manual processes to digital channels.
"There is a lot we need to do still but we're pleased with the momentum within our Personal and Private Banking business," Fihla said.
Absa's operating costs rose 4% to R31.4 billion, which the group attributed to continued investment in strategic initiatives while maintaining cost discipline.
Business unit performance and risks
Corporate and Investment Banking (CIB) showed only modest growth at group level, up about 1%. Fihla said South Africa performed strongly in CIB, with a 13% increase driven by stronger deal origination. However, the Africa regions saw a 12% downturn in CIB earnings, affected by the interest rate cuts and earlier volatility.
- Strengths: higher retail customer numbers, improved credit quality, digital adoption.
- Headwinds: rate reductions and volatility in some African markets, rising operating spend.
- Investor returns: dividend increased by 8% to 850 cents per share.
The results underline the concentration of Absa's profitability in South Africa and a few other markets. While South Africa, Kenya and Ghana together contributed the majority of profit, management warned that performance across the group's African footprint remains uneven and sensitive to local macroeconomic shifts.
Implications for the banking sector
The half‑year outcome will be watched closely by investors and market analysts. A stronger South African showing supports capital generation and dividends, but the decline in earnings across other African operations underscores exposure to regional policy moves—particularly interest‑rate decisions—and to changing economic conditions.
Absa's emphasis on digital channel migration and improved risk management mirrors broader industry trends where banks seek to reduce credit impairment and improve operational efficiency. The bank's decision to continue investing while holding to cost discipline signals management confidence in future growth, though results in other African markets will determine how much of the group's momentum is sustained.
These figures were released by the group as reported in its half‑year statement. Further details on segmental performance and outlook are contained in Absa's full interim report.
