Absa, South Africa’s third-biggest lender, boosts headline earnings to $1.52 billion

Absa Group, South Africa’s third-biggest lender by assets, reported higher earnings for the year ended Dec. 31, 2025, as steady revenue growth and lower credit losses helped support profit.

Headline earnings, the main profit measure used by companies listed in South Africa, rose 12.25 percent to R24.8 billion ($1.52 billion), according to the lender’s latest financial results. The improvement reflects stronger client activity, a rise in fee-based income and tighter control of costs across the group.

Earnings rise as non-interest income grows

Earnings per share increased 12.2 percent, climbing from R26.62 ($1.63) to R29.87 ($1.83). Total income also grew, rising 5.2 percent from R109.95 billion ($6.75 billion) to R115.7 billion ($7.1 billion), supported largely by higher non-interest income and net interest income.

Income generated outside traditional lending — including fees, trading and transaction services — rose from R38.84 billion ($2.4 billion) to R41.76 billion ($2.56 billion). Net interest income, which reflects revenue from loans and deposits, increased from R71.1 billion ($4.36 billion) to R73.9 billion ($4.53 billion).

The bank said improved credit quality also helped lift earnings. Lower credit impairments reduced pressure on profits during the period, while several business units reported stronger activity from corporate and institutional clients.

Absa sees growth across Africa units

Corporate and investment banking and Absa’s operations outside South Africa drove growth. Regional units across the continent posted faster earnings expansion than the home market, supported by higher customer numbers and stronger pre-provision profits. In South Africa, results were aided by improved credit performance across several lending portfolios.

“Our performance over the past year shows steady progress as we focus on the priorities we set for the group,” said Kenny Fihla, chief executive officer of Absa Group. “We are seeing better credit outcomes, stronger client activity and growth in several of our businesses, particularly in Corporate and Investment Banking and across our operations in the rest of Africa.”

Group Financial Director Deon Raju said the results reflect careful cost management and stronger income from customer transactions and trading activity. “We are encouraged by the improvement in credit trends and the continued growth in non-interest income,” he said. “That allows us to keep investing in the business while maintaining a solid capital position.”

Absa serves 13 million across Africa

Absa serves more than 13 million customers across Africa and operates in 10 countries: Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania, Uganda and Zambia. The group also maintains representative offices in Namibia and Nigeria, while its international presence includes securities operations in the United Kingdom and the United States, an advisory business in China and a technology support office in the Czech Republic.

Its balance sheet expanded during the year. Total assets rose from R2.06 trillion ($126.6 billion) at the end of 2024 to R2.24 trillion ($138 billion) on Dec. 31, 2025. Shareholders’ equity increased from R160.2 billion ($9.84 billion) to R172.4 billion ($10.6 billion). Retained earnings climbed from R139.2 billion ($8.55 billion) to R148.8 billion ($9.14 billion). The lender declared a final dividend of R8.5 ($0.52) per share, bringing the total payout for the year to R16.35 ($1) per share, the highest annual dividend in its history.