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Absa Group reported a 12% increase in profit in 2025, reaching 24.76 billion rand ($1.5 billion).
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Operations outside South Africa contributed 31% to the group's total income.
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Strong economic conditions in Ghana and Zambia helped boost the performance of African subsidiaries.
South African banking group Absa reported profit of 24.76 billion rand ($1.5 billion) for 2025, up 12% from the previous year, according to results released by the Johannesburg-based lender. Subsidiaries operating in the rest of Africa outside South Africa accounted for 31% of the group's earnings.
The bank's “Africa Region” segment, which covers operations in 12 countries including Ghana, Botswana, Kenya and Mauritius, recorded a 25% rise in profit to 7.76 billion rand. In contrast, Absa's domestic South African business recorded more modest growth, with profits rising 7%. Returns on equity in African operations also improved, rising from 15.1% in 2024 to 16.3% in 2025.
The strong performance of African subsidiaries was partly driven by improved economic conditions in Ghana. From January 1, 2025, the country is no longer treated as a hyperinflationary economy in the group's financial reporting, which has had a positive impact of approximately 633 million rand on Absa Bank Ghana's earnings.
Economic growth in Absa's other African markets in 2025 was uneven. Ghana's economy strengthened, supported by strong gold export revenues, which led to a sharp appreciation of the cedi, leading to a sharp slowdown in inflation and a significant decline in interest rates, the group said.
Zambia also experienced an economic rebound supported by higher copper prices and increased production. Meanwhile, East Africa's more diversified economies have continued to perform stably, according to the bank.
South Africa remains Absa's key market
South Africa continues to represent the Group's core market. The country took 69% of the total profit, with earnings of about 17 billion rand, up 7% from the previous year.
Group total revenue increased by 5%, while operating expenses increased by 6%, mainly due to investment in digital technology and employee skills development.
Risk management also improved during the year. Provisions for bad loans declined by 6%, bringing the loan loss ratio down to 0.88%, in line with the bank's targets.
Absa increased shareholder returns on the back of strong performance. The bank declared a final dividend of 850 cents per share, bringing total dividends for the year up 12% to 1,635 cents.
Expanding African footprint and opening up to Dubai
Outside South Africa, Absa operates in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, Uganda, Zambia and Tanzania, including Absa Bank Tanzania and National Bank of Commerce Tanzania. The group also maintains representative offices in Nigeria and Namibia and runs insurance operations, notably in Kenya, through Absa Life Assurance and First Assurance.
Within the next three months, the bank plans to open a representative office in Dubai, subject to regulatory approval, with the aim of facilitating international investment flows into Africa.
Sandrine Genagne