Absa has delivered stronger half-year results under CEO Kenny Fihla, although weaker performance across its African operations remains a challenge.
The bank reported an 8% increase in headline earnings to R12.81 billion for the six months to June 2026.
Revenue rose 4% to R58.8 billion, while return on equity improved to 15%. Profit increased by more than 8% to R14 billion.
The results mark Fihla’s first full set of interim results since taking over as CEO in June 2025.
South Africa Carries the Group
Absa’s South African operations were the biggest driver of growth, with headline earnings rising 17% to R9.19 billion.
However, its Africa Regions business struggled. Headline earnings fell 10% to R3.62 billion, with lower interest rates in several markets putting pressure on margins.
The Africa business remains strategically important, contributing around 30% of group revenue.
Restructuring Underway
Fihla has implemented significant changes since taking the helm, including a new pan-African operating model launched in January 2026.
Absa now operates across 17 countries and serves 13.4 million customers, with the bank hoping its streamlined structure will unlock stronger growth across the continent.
The bank’s Personal and Private Banking division also performed strongly, with headline earnings up 12%, while Corporate and Investment Banking grew by just 1%.
Despite the mixed segmental performance, Absa increased its interim dividend by 8% to 850 cents per share, signalling confidence in the bank’s direction.
Main Image: Daily Investor
