Absa Group (ABG) investor relations material

Executive summary

• Headline earnings rose 8% year-over-year to ZAR 12.8 billion, with RoE improving to 15.0% and strong South Africa performance offsetting weaker Africa Regions results.

• All business units grew earnings, notably Personal & Private Banking (up 12%, ROE 15.2%) and Business Banking (up 5%, ROE 24.6%).

• Continued investment in digital, talent, technology, and operational efficiency to support long-term growth.

• Leadership depth and accountability strengthened, with early benefits seen in execution and alignment.

Financial highlights

• Headline earnings up 8% to ZAR 12.8 billion; revenue up 4% to ZAR 58.8 billion; net interest income up 3% to ZAR 37.4 billion; non-interest income up 6% to ZAR 21.4 billion.

• Return on equity improved to 15%; CET1 capital ratio at 12.8%, above target range.

• Interim dividend per share up 8% to 850 cents; NAV per share up 5% to 20,968 cents.

• Customer loans grew 6% to ZAR 1.49 trillion; deposits up 5% to ZAR 1.5 trillion.

• Cost-to-income ratio at 53.4%; operating expenses up 4%.

Outlook and guidance

• 2026 guidance: low- to mid-single digit revenue growth, high single-digit loan growth, mid- to high-single digit deposit growth.

• Credit loss ratio expected to remain in the middle of the 75–100bps target range; RoE around 15%; CET1 ratio to finish 2026 at the top end of the 11.0–12.5% target range.

• Dividend payout ratio maintained at 55%.

• Macroeconomic risks include Middle East volatility, El Niño weather impacts, and regulatory uncertainties.