Financial Highlights
On March 10, 2026, Absa released its financial results for the year ending December 31, 2025. The bank reported a significant 12% rise in headline earnings, amounting to R24.8 billion. This growth reflects the institution’s ongoing commitment to its strategic priorities and disciplined execution across various sectors.
Revenue for the year increased by 5%, reaching R115.7 billion, while operating costs grew by 6% to R62.2 billion. The rise in earnings per share was notable, with headline earnings per share climbing 12.2% to 2,987 cents.
Dividend Declaration
In light of its strong performance, Absa declared a final ordinary dividend of 850 cents per ordinary share. This decision underscores the bank’s confidence in its financial health and future prospects.
Strategic Investments
Absa’s investment in information technology also saw a 6% increase, totaling R16.7 billion. This investment is crucial as the bank continues to enhance its digital services.
As a result of these efforts, the number of digitally-active customers has risen to 5.4 million, contributing to an overall customer base of 13.1 million. This growth in customer engagement is indicative of Absa’s successful adaptation to the evolving banking landscape.
Management Insights
Kenny Fihla, the CEO of Absa, commented on the results, stating, “Our performance over the past year reflects clear progress on delivering on our strategic priorities, supported by disciplined execution across the group.” This sentiment highlights the bank’s focus on maintaining a robust operational framework.
Deon Raju, the Chief Financial Officer, expressed optimism regarding the bank’s credit loss ratio, noting improvements supported by better outcomes across key portfolios. He also mentioned the momentum in trading revenue and customer activity, which are vital for sustained growth.
Since launching its productivity programme in 2024, Absa has achieved cumulative savings of R3.1 billion, further strengthening its financial position. This initiative has played a significant role in enhancing operational efficiency.
As of now, Absa stands at a pivotal moment, with its financial indicators suggesting a positive trajectory. The bank’s strategic decisions and investments appear to be yielding favorable results, positioning it well for future challenges and opportunities.
