Absa posts higher half-year profit as credit costs ease

Source: Reuters.

Here are some details:

• Headline earnings grew to R12.8bn ($787.61m) in the six-month period ended 30 June 2026.
• 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 R58.8bn as net interest income increased 3% to R37.4bn, 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 R21.4bn, 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 R31.4bn, producing a slightly higher cost-to-income ratio of 53.4%.
• Credit impairment charges declined 1% to R7.1bn, resulting in an improved credit loss ratio of 94 basis points from 100 basis points.

($1 = 16.2516 rand)