Absa made R11.9 billion in headline earnings for the first half of 2025.
Over the past few years, Absa has struggled to compete with its peers due to leadership instability. However, the bank said its turnaround plan is starting to yield success.
Absa is one of South Africa’s big four banks, and it has found itself falling behind the likes of Nedbank, Standard Bank and FNB.
Analysts are optimistic that newly-appointed CEO Kenny Fihla will break the cycle of the bank frequently changing leadership. Fihla started his tenure in mid-June.
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Absa behind Standard Bank
The bank made R11.9 billion in headline earnings in the first half of 2025. While one of its competitors, Standard Bank, made R24 billion in the same period.
Headline earnings are a way of measuring a company’s core profit. Basically, how much money it makes from its main business activities, without the noise of unusual or one-off events.
Fihla, on Monday, said that their headline earnings increased by 17% during the period, and the bank’s return on equity continues to improve.
Good news for Absa
Absa’s revenue increased by 5% to R56.5 billion, and the bank’s return on equity increased to 14.8% from 14.0%, which is lower than Standard Bank’s, which increased to 19.1%.
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However, Fihla remains optimistic. “Our interim earnings performance demonstrates good progress on strategic priorities during this period, including operational reorganisation and divisional alignment, and enhanced client focus.”
Total net loans and advances grew 8% to R1.4 billion, reflecting 7% higher net loans and advances to customers, while net loans and advances to banks increased 27% to R93 billion.
Economic growth
Absa expects the country’s economy to grow by just 0.9% in 2025 due to the weak start to the year and the negative impact of the US trade tariffs.
“Our baseline forecast for our Africa region countries is that GDP will rise slightly to 4.8% in 2025.
“Although heightened global uncertainties have increased downside risks for all our markets, lower inflation and policy rates, ongoing infrastructure investment, favourable weather conditions, multilateral support and a strong focus on reform across the region continue to support the longer-term outlook,” said the bank.
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