Absa Group posts higher income as earnings, lending improve in first half of 2026

Absa Group, the South African pan-African financial services company led by Johannesburg-born banker Kenny Fihla, reported higher income and earnings in the first half of 2026 as lending and deposits continued to grow across its operations.

The group posted interim total income of R58.8 billion ($3.62 billion) for the six months ended June 30, up 4.1 percent from R56.5 billion ($3.48 billion) a year earlier, according to its unaudited consolidated interim financial results released Tuesday. The increase came as the bank expanded its loan book and attracted more deposits across its main markets.

Earnings growth strengthens Absa shareholder returns

Absa’s earnings also improved during the period. Basic earnings per ordinary share rose 12.1 percent to R15.18 ($0.93) from R13.54 ($0.83) a year earlier. Headline earnings per share increased 7.9 percent to R15.45 ($0.95), compared with R14.32 ($0.88) in the same period of 2025. The stronger earnings helped lift Absa’s return on equity to 15 percent, from 14.8 percent. Net asset value per share rose 4.6 percent to R209.70 ($12.93) from R200.48 ($12.36).

The board responded by declaring an interim ordinary dividend of R8.50 ($0.52) per share, up 8.3 percent from the R7.85 ($0.48) paid a year earlier. The higher payout gives shareholders a larger return while reflecting the group’s improved earnings in the first six months of the year. Absa’s balance sheet also expanded. Gross loans and advances increased 5 percent to R1.54 trillion ($95 billion), from R1.46 trillion ($90.1 billion) a year earlier. Deposits and debt funding grew at a faster pace, rising 8 percent to R1.91 trillion ($117.9 billion).

Absa’s asset quality shows improvement

Asset quality improved at the same time. The ratio of Stage 3 loans, which covers credit-impaired exposures, fell to 5.3 percent from 5.9 percent. The decline points to a lower share of the loan book showing signs of serious credit stress. Some operating measures were less favorable. Absa’s net interest margin narrowed to 4.46 percent from 4.58 percent, while its cost-to-income ratio edged up to 53.4 percent from 53.2 percent. The bank maintained a solid capital position, with its Common Equity Tier 1 ratio rising to 12.8 percent from 12.5 percent.

Its liquidity coverage ratio was 125.2 percent. The results reflect the scale of Absa’s operations across Africa and its continued investment in digital banking. The group operates in 17 countries, with 1,043 outlets and 6,212 ATMs, and serves more than 13.4 million customers. Digitally active customers increased 14 percent during the period, giving the bank a larger base of customers using its online and mobile services.

Absa expands Dubai financial presence

Absa has also expanded its international presence, including the opening of a branch at the Dubai International Financial Centre in the United Arab Emirates. The Johannesburg-listed bank had a market capitalization of about R203.9 billion ($12.6 billion) as of the reporting period. Its first-half results show a business that continued to grow its loan book and funding base while improving earnings, capital strength, and asset quality.