JOHANNESBURG, SOUTH AFRICA — Absa Group announced a 17% increase in headline earnings for the first half of 2025, driven by lower credit impairments and a rise in pre-provision profit. The strong performance reflects the company’s strategic focus and a diversified footprint across its operations in 16 countries.
Kenny Fihla, who became the group’s CEO on June 17, 2025, said the interim results show “good progress on strategic priorities,” including operational reorganization and an enhanced client focus. The group’s return on equity continues to improve, Fihla added.
A significant factor in the earnings growth was a 14% decrease in credit impairments, which was a result of a stronger collections strategy and changes to lending criteria, particularly in vehicle asset finance and unsecured lending. The credit-loss ratio is now at the top end of Absa’s target range at 100 basis points.
Deon Raju, Absa Group’s financial director, highlighted key contributors to the strong performance, including growth in non-interest income and effective cost management. The group has already achieved 2.4 billion rand of the 5 billion rand in savings it committed to by 2027 under its 2024 productivity program.
The group’s business units largely reported strong earnings growth. Corporate & Investment Banking remained an anchor, with headline earnings of 6.4 billion rand, a 10% increase. The newly formed Personal and Private Banking unit saw a 23% jump in earnings to 3.2 billion rand, mainly due to a reduction in credit impairments.
Absa Regional Operations (ARO) Retail and Business Banking also saw a significant improvement, with headline earnings increasing 35% to 1.1 billion rand, supported by strong customer acquisition. Business Banking, however, saw a 12% decrease in earnings to 1.7 billion rand, impacted by subdued revenue growth and higher impairments.
Absa’s customer base grew by 2% to 12.8 million in the first half of the year, with digitally active customers increasing by 8% to 5 million. The group’s IT-related spending increased by 5% to 8.2 billion rand, reflecting investments in new digital capabilities and cybersecurity.
Looking ahead, Absa expects the South African economy to grow by 0.9% in 2025, while its Africa region countries are projected to see a slightly higher GDP rise of 4.8%. The company’s full-year guidance remains largely unchanged, with an expected mid-single-digit revenue growth and a return on equity of around 15%.
