• Absa Group reported a 12% rise in profit in 2025, reaching 24.76 billion rand ($1.5 billion).

• Operations outside South Africa contributed 31% of total group earnings.

• Stronger economic conditions in Ghana and Zambia helped boost the performance of African subsidiaries.

South African banking group Absa reported a 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 across the rest of Africa—outside South Africa—accounted for 31% of the group’s earnings.

The bank’s “Africa Regions” segment, which covers operations in 12 countries including Ghana, Botswana, Kenya, and Mauritius, posted a 25% increase in profit to 7.76 billion rand. By contrast, Absa’s domestic South African business recorded more modest growth, with profit rising 7%. Return on equity in the African operations also improved, climbing 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. Since January 1, 2025, the country is no longer treated as a hyperinflationary economy in the group’s financial reporting, which had a positive impact of about 633 million rand on Absa Bank Ghana’s earnings.

Economic growth was uneven across Absa’s other African markets in 2025. Ghana’s economy strengthened, supported by strong gold export revenues that drove a sharp appreciation of the cedi, leading to a rapid slowdown in inflation and a significant drop in interest rates, the group said.

Zambia also experienced an economic rebound, supported by higher copper prices and increased production. Meanwhile, the more diversified economies of East Africa continued to post stable performance, according to the bank.

South Africa Remains Absa’s Core Market

South Africa continues to represent the group’s main market. The country accounted for 69% of total profit, with earnings of nearly 17 billion rand, up 7% from the previous year.

Overall group revenue rose 5%, while operating expenses increased 6%, largely due to investments in digital technology and employee skills development.

Risk management also improved during the year. Provisions for bad loans declined by 6%, bringing the credit loss ratio down to 0.88%, in line with the bank’s targets.

On the back of the stronger performance, Absa increased shareholder returns. The bank announced a final dividend of 850 cents per share, bringing the total dividend for the year to 1,635 cents, up 12%.

Expanding African Footprint and Opening Toward Dubai

Outside South Africa, Absa operates in Botswana, Ghana, Kenya, Mauritius, Mozambique, the Seychelles, Uganda, Zambia, and Tanzania, including through Absa Bank Tanzania and the 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, in a move aimed at facilitating international investment flows into Africa.

Sandrine Gaingne