South Africa’s Absa posts higher half-year profit as credit costs ease

By Nqobile Dludla

A person walks past an Absa bank logo in Cape Town, South Africa, August 14, 2026. REUTERS/Esa Alexander

JOHANNESBURG, Aug 18 (Reuters) – South African lender Absa Group (ABGJ.J), opens new tab reported an 8% ​rise in half-year headline earnings on Tuesday, supported ‌by higher revenue and lower credit impairment charges.

Here are some details:

  • Headline earnings grew to 12.8 billion rand ($787.61 million) in ​the six-month period ended June 30.
  • Absa, the third-biggest ​lender by assets in South Africa, declared an ⁠interim dividend of 850 cents per share, up ​8.3% year-on-year.
  • Revenue rose 4% to 58.8 billion rand as ​net interest income increased 3% to 37.4 billion rand, driven by growth in customer loans and deposits despite margin pressure.
  • The group’s ​net interest margin fell to 4.46% from 4.58%, ​as lower interest rates in its rest-of-Africa operations and competitive lending ‌and ⁠deposit pricing in South Africa’s corporate and investment banking business offset the benefits of balance-sheet growth.
  • Non-interest income increased 6% to 21.4 billion rand, supported by growth ​in fee and ​commission income ⁠on increased client activity and higher lending volumes and a strong trading income ​contribution from Global Markets.
  • Operating expenses rose 4% ​to 31.4 ⁠billion rand, producing a slightly higher cost-to-income ratio of 53.4%.
  • Credit impairment charges declined 1% to 7.1 billion rand, ⁠resulting ​in an improved credit loss ​ratio of 94 basis points from 100 basis points.

($1 = 16.2516 rand)

Reporting by ​Nqobile Dludla; Editing by Christopher Cushing and Sherry Jacob-Phillips

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