Africa, CIB divisions boost Absa performance, but business banking lags

Absa has reported a solid financial performance for the year to 31 December 2025.

The pan-African financial services group delivered a 12% rise in headline earnings to R24.8 billion for the full year.

This performance reflects lower credit impairments, disciplined cost management, and solid momentum across key business segments, particularly in Corporate and Investment Banking (CIB) and Africa Regions, the group said.

Revenue increased 5% to R115.7 billion, while operating costs grew 6% to R62.2 billion.

Headline earnings per share were up 12.2% to 2 987 cents a share.

Absa declared a final ordinary dividend of 850 cents per ordinary share, adding to the interim dividend of 785 cents per ordinary share.

Asked about the growth in Absa's CIB unit, Group CEO Kenny Fihla ascribes it to a combination of factors.

Firstly, their investment in the banking business has done exceptionally well, he says, on the back of opportunities that presented themselves in the energy and infrastructure sectors.

He also highlights a strong performance from Absa's global market business, in part assisted by the volatility of particularly the last period.

"That business is always positioned to take advantage of uncertainty and volatility in that market. In as much as we worry now about what's happening in the Middle East, global market business sees opportunity to mitigate the risk of uncertainty and hedge their position."

The road has not been as smooth for business banking, which Fihla appears to ascribe to teething pains.

While revenues grew by mid-single digits, cost was not contained appropriately, he says.

"In addition, the quality of the asset book is still getting itself cleaned. I didnt want to make an aggressive attempt to grow business banking... and there was origination that wasn't really of a good quality and that resulted in massive impairment."

"We're still seeing the tail end of those bad decisions, but the fundamentals are starting to be solid and I'm fairly confident that with all the effort that's been put in, like secondment from other parts of the group to strengthen the leadership... that business banking should see its way through to 2026 and bouncing back very strongly by 2027."

For more insight from the Absa Group CEO, listen to the interview audio at the top of the article