Slides
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Investor presentation 18 August 2026 1H26 Financial results Absa Group Limited
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Kenny Fihla Group Chief Executive Officer
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3 C U S T O M E R- L E D G R O W TH D R I V E E X C E L L E N C E N E W G R O W TH O P P O R T U N I TE S Empowering Africa’s Tomorrow, Together… One Story at a TimeO U R P U R P O S E O U R A M B I T I O N To be a leading pan-African bank D E E P E N I N G T A L E N T & S U C C E S S I O N S T R O N G L E A D E R S H I P & O R G A N I S A T I O N A L R E S I L I E N C E C U L T U R E F O R C O M P E T I T I V E A D V A N T A G E D I V E R S I F I E D , PAN - A F R I C A N B U S I N E S S O U R S T R A T E G I C P I L L A R S E N A B L E D B Y Unlocking the full potential of the franchise through focused execution
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4 GDP growth (%) – Global vs. South Africa vs. Africa Regions Interest rate movement across selected markets (Indexed) 2023 2024 2025 2026E 2027E 3.3 3.4 3.5 3.0 3.4 2023 2024 2025 2026 2027 0.8 0.5 1.1 1.5 1.6 2023 2024 2025 2026E 2027E 4.8 4.8 5.0 5.1 5.6 Note: * Weighted across our markets 45 50 55 60 65 70 75 80 85 90 95 100 GH KE SA Our chosen markets remained resilient despite global uncertainty Africa Regions * South Africa 1H24 1H25 1H26 Global
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5 Solid 1H26 performance, with 8% earnings growth and RoE improving to 15% Dividends per share +8% 850c in 1H26 Net asset value per share +5% 20 968c in 1H26 Headline Earnings +8% R12.8bn in 1H26 Revenue +4% R58.8bn in 1H26 Earnings Balance sheet Shareholder returns Net Interest Income +3% R37.4bn in 1H26 Non-Interest Income +6% R21.4bn in 1H26 Return on Equity 15.0% From 14.8% in 1H25 Cost-to-Income 53.4% From 53.2% in 1H25 Common Equity Tier 1 12.8% From 12.5% in 1H25 Loans Growth +6% R1.5tn in 1H26 Customer deposits +5% R1.5tn in 1H26
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6 Strong client franchise momentum, with South Africa and key businesses delivering encouraging growth 15.2 (13.9% 1H25) 24.6 (23.1% 1H25) 19.2 (20.6% 1H25) Personal and Private Banking Business Banking Corporate and Investment Banking Business unit Earnings (Rbn) RoE (%) Regional earnings +13% (12%) +10% +23% +10% (18%) 3.7 1H25 4.1 1H26 2.6 1H25 2.7 1H26 6.1 1H25 6.2 1H26 +36% CCY (16%) CCY (11%) CCY 12% 5% 1%
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7 Client-led growth | The client franchise is starting to respond which further builds our conviction Business Banking Growth +3% Active customers 492k 2.63 (+4%) Average product per customer +9% Digitally active customers 280k Personal and Private Banking Growth Engagement Engagement +5% Active Customers 11.6mn +15% Digitally active customers | 5.4m +21% SA Reward customers | 2.9m +19% SA VAS transactions | 61.6m Corporate and Investment Banking GEPF AUM of R3.5tn Custody & Trustee Chery R1.7bn Manufacturing Plant Facility Finance United Capital Fertilizer $350mn Mandated Lead Arranger, Bookrunner & Sole Underwriter Safaricom Ethiopia $110mn Term Loan +6% Client revenue Pick n Pay R4.7bn Equity Capital Raise and Joint Global Coordinator Beaufort West, Middelpunt & Orkney Solar PV Joint Mandated Lead Arranger, Guarantee & Hedge Provider, Agent, Acc. Bank. We continue to grow and engage with customers Clients trust us for solutions across the continent Sustainable finance mobilisedR31bn (+53%)
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8 Diversified Pan-African business | Broadening sources of earnings and growth is critical to building a more sustainable franchise A diversifying Pan-African business Geographic contribution As a percent of group headline earnings BU contribution As a percent of group headline earnings Diversifying revenue Contribution to revenue 47.5% 49.4% in 1H25 31.5% 29.5% in 1H25 21.0% 21.1% in 1H25 Note: * Kenya and Ghana 36.4% 36.0% in 1H25 Non-interest income 63.6% 64.0% in 1H25 Net interest income 71.7% 66.0% in 1H25 South Africa 11.5% 16.8% in 1H25 Top 2 AR markets * 16.8% 17.2% in 1H25 Rest BBPPBCIB
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9 Drive excellence | Disciplined cost management is creating capacity to invest in our strategic priorities Productivity and discipline Investing for growth Managing cost growth to below inflation We are still investing to achieve our strategy Frontline talent – targeted investment into revenue- generating positions, specialist roles and key leadership appointments Discretionary spending – optimising discretionary spending e.g. consultancy and marketing costs Once off costs – ‘investing’ to remove fixed costs from our base Digital modernisation – investment into cloud, data, cybersecurity and Agentic AI Tech & infrastructure – corporate space optimisation, supplier management, decommissioning & licensing Branch and channel optimisation – automation, process improvements and workforce management
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10 New growth opportunities | We are extending our reach, enhancing our relevance and creating value beyond traditional banking products Bringing value to clients through partnerships Paving the way for wider adoption of green solutions in the local passenger vehicles market, as well as working towards a shared goal of establishing of a green vehicle finance ecosystem. Providing over 13 million clients with a simpler, more seamless way to transact, grow and protect their wealth through our mobile app. By combining DHL Express’ logistics network with Absa’s banking and digital capabilities, the partnership equips African entrepreneurs for cross-border trade and e-commerce growth.
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11 Culture | Culture a key foundational enabler of our transformation and growth Culture Vision We are obsessed with delivering customer value with excellence. We own and take accountability for the outcomes. We win together. Mindset shifts, to: …delivering customer value …being outcomes obsessed …driving excellence and a winning mentality Strengthening leadership and deepening talent across the organisation Bringing leadership closer to every part of the organisation Fostering greater collaboration and teamwork Empowering our frontline teams to act and deliver in the interest of the customer A sharper focus on colleague experience and organisational health
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Deon Raju Group Financial Director
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13 Solid earnings growth improved RoE slightly 10.7 10.2 11.9 12.8 1H23 1H24 1H25 1H26 2% 8% (5%) 17% Headline earnings (Rbn) RoE (%) 15.7 14.0 14.8 15.0 1H23 1H24 1H25 1H26
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14 Pre-provision profit growth and credit charge underpin earnings growth 1H26 Rbn 1H25 Rbn Change % Change CCY % Net interest income 37.4 36.3 3 5 Non-interest income 21.4 20.2 6 7 Total income 58.8 56.5 4 6 Operating expenses (31.4) (30.0) 4 6 Pre-provision profit 27.4 26.4 4 5 Credit impairment charge 7.1 7.2 (1) 1 Headline earnings 12.8 11.9 8 9 Diluted headline EPS (c) 1 517.1 1 422.9 7 Dividend per share (c) 850 785 8 Net interest margin (bps) 446 458 Credit loss ratio (bps) 94 100 Cost-to-income ratio (%) 53.4 53.2 RoE (%) 15.0 14.8 NAV per share (c) 20 968 20 048 5 CET1 capital ratio (%) 12.8 12.5
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15 Strong South Africa earnings growth outweighs lower Africa Regions 38.4 18.1 41.3 17.5 South Africa Africa Regions 1H25 1H26 8% (3%) 7,838 4,036 9 188 3 619 South Africa Africa Regions 1H25 1H26 17% (10%) Revenue by geography (Rbn) Headline earnings by geography (Rm)
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16 Lower policy rates a material drag on net interest margin Note: * average interest bearing assets; ** group equity endowment; *** interest rate risk management 458 446 6 8 (19) (6) 1H25 Loans Deposits Capital ** Hedge *** Other 1H26 (12) Change in net interest margin* (basis points) (1) 469 457 458 448 446 1H24 2H24 1H25 2H25 1H26 Net interest margin (bps)
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17 Stable SA margin given structural hedge Equity and customer deposits (Rbn)Net interest margin by geography (bps) 377 782 378 735 South Africa Africa Regions 1H25 1H26 1,004 1,397 South Africa Africa Regions Banking book NII sensitivity 200bp rate cut (Rm) 1,347 318 South Africa Africa Regions 81% 19%Split:
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18 Balance sheet continues to grow 1,051 1,155 1,233 1,319 1,405 1H22 1H23 1H24 1H25 1H26 9% 7% 7% 1,085 1,203 1,262 1,402 1,469 1H22 1H23 1H24 1H25 1H26 10% 5% 6% 11% 5% Net customer loans (Rbn) Customer deposits (Rbn)
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19 Solid CIB and BB customer loan growth while PPB remains modest 562 582 170 612 603 185 CIB PPB BB 1H25 1H26 9% 9% 4% Net customer loans (Rbn) Annualised 1H26: 9% 5% 13%
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20 Moderate non-interest income growth 12.5 3.7 1.5 0.5 13.2 5.1 1.5 0.2 13.6 5.3 1.7 0.4 Net fee and commission Net trading Insurance Other 1H24 1H25 1H26 4% 106% 3% Note: Net trading excludes the impact of hedge accounting 8% (55%)5% 36% 5% Non-interest income (Rbn)
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21 Operating expenses growth remained well contained 1H26 Rm Change % Staff 18 250 6 Property 966 (2) Technology 3 800 6 Depreciation 1 609 2 Professional fees 1 463 7 Marketing 1 061 (9) Amortisation 1 340 (6) Other * 2 904 10 Total 31 393 4 Note: * includes equipment, cash transportation, telephone and postage, fraud, travel and entertainment, auditors, other costs etc 30.0 31.4 1.0 0.4 1H25 Staff costs Non-staff costs 1H26 4%3% 6% Cost growth drivers (Rbn)
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22 Credit loss ratio continued to improve into target range … 91 127 123 100 94 1H22 1H23 1H24 1H25 1H26 Through-the-cycle target range 75-100 Group credit loss ratio (bps)
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23 … due to lower PPB credit loss ratio, with CIB and BB flat Credit loss ratio (%) 1H25 1H26 Personal and Private Banking 1.96 1.87 Unsecured Lending 7.67 7.49 Home Loans 0.47 0.50 Vehicle and Asset Finance 1.66 1.59 Business Banking 0.64 0.63 CIB 0.17 0.17 Group 1.00 0.94 6.14 5.90 5.30 1H24 1H25 1H26 1H24 1H25 1H26 Stage 1 0.64 0.59 0.60 Stage 2 6.66 5.74 5.40 Stage 3 47.1 46.9 45.5 Stage coverage ratios (%) Non-performing loans (%)
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24 6.1 3.7 2.6 (0.5) 6.2 4.1 2.7 (0.2) CIB PPB BB Head Office 1H25 1H26 All businesses grew earnings 1% 12% (52%) 5% Headline earnings (Rbn)
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25 CIB earnings growth slower 47.4 47.9 1H25 1H26 6,109 6,192 1H25 1H26 1% 0.17 0.17 1H25 1H26 20.6 19.2 1H25 1H26 Headline earnings (Rm) RoE (%) Credit loss ratio (%)Cost-to-income ratio (%) Earnings contribution (%) 47.5 CIB PPB BB
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26 CIB benefits from diversification, with SA offsetting lower AR earnings 1 735 2 386 1 982 6 109 3 298 2 811 1 508 2 572 2 160 6 192 3 732 2 460 Transactional Banking Investment Bank Global Markets Total CIB South Africa Africa Regions 1H25 1H26 (13%) 8% (12%) 1% 13% Note: In constant currency total CIB headline earnings grew 2%. Split by business excludes CIB Other. Headline earnings (Rm) 9%
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27 Some positive signs of traction in PPB 55.7 55.9 1H25 1H26 3,651 4,106 1H25 1H26 12% 1.96 1.87 1H25 1H26 13.9 15.2 1H25 1H26 28% Headline earnings (Rm) ROE (%) Credit loss ratio (%)Cost-to-income ratio (%) Earnings contribution (%) 31.5 CIB PPB BB
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28 1 188 193 733 300 515 691 1 245 328 750 366 505 787 Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Insurance SA PPB AR Banking 1H25 1H26 Broad-based growth in banking earnings across PPB 5% 70% (2%) 22% 2% Note: Excludes PPB SA Other (R84m profit) and PPB AR Insurance (R41m profit). Headline earnings (Rm) 14% PPB SA
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29 21.0 CIB PPB BB Improved Business Banking performance 54.1 55.4 1H25 1H26 2,603 2,743 1H25 1H26 5% 0.64 0.63 1H25 1H26 23.1 24.6 1H25 1H26 Headline earnings (Rm) RoE (%) Credit loss ratio (%)Cost-to-income ratio (%) Earnings contribution (%)
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30 Solid BB SA earnings growth partially offset by lower BB AR 7 428 2 660 7 940 2 634 South Africa Africa Regions 1H25 1H26 7% (1%) 2,181 422 2 397 346 South Africa Africa Regions 1H25 1H26 10% (18%) BB revenue by geography (Rm) BB headline earnings by geography (Rm)
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31 12.7 12.8 1.0 (0.6) FY25 RWA growth RWA optimisation Profit Dividend 1H26 (0.5) 0.2 CET1 ratio remains above our target range Target range 11.0% - 12.5% Group common equity tier 1 ratio (Rm)
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32 FY26 guidance Low- to mid-single digit revenue growth.Revenue Customer loans up high single digit and customer deposits mid- to high-single digit.Balance sheet Credit loss ratio expected to be broadly similar to 2025 and around the middle of our through-the-cycle target range of 75 to 100 basis points. Credit impairments Low- to mid-single digit growth in operating expenses, producing slightly negative operating JAWS and low- to mid-single digit pre-provision profit growth.Operating expenses RoE around 15%Returns Group CET1 ratio expected to finish 2026 at top end of 11.0% to 12.5% target range. Dividend payout ratio of 55% Capital
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Kenny Fihla Group Chief Executive Officer
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34 Our medium-term targets remain unchanged C U S T O M E R- L E D G R O W T H D R I V E E X C E L L E N C E N E W G R O W T H O P P O R T U N I T E S Empowering Africa’s Tomorrow, Together… One Story at a TimeO U R P U R P O S E O U R A M B I T I O N To be a leading pan-African bank S T R O N G L E A D E R S H I P & O R G A N I S A T I O N A L R E S I L I E N C E C U L T U R E F O R C O M P E T I T I V E A D V A N T A G E RoE 16-19% D I V E R S I F I E D , PAN - A F R I C A N B U S I N E S S O U R S T R A T E G I C P I L L A R S E N A B L E D B Y M E D I U M- T E R M T A R G E T S ( 2 0 2 7 – 2030) Cost-to income approaching 50% CET1 at or above Top end of target range D E E P E N I N G T A L E N T & S U C C E S S I O N
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35 Our 1H26 progress gives us confidence that we are strengthening the franchise, sustaining momentum and positioning Absa for long-term growth A robust African franchise, underpinned by strong growth in South Africa and business lines A solid 1H26 performance underlined by 8% earnings growth and an improved RoE Sustaining momentum … … while building a long-term sustainable franchise Underlying fundamentals of our client franchise showing positive momentum Absa remains an institution built on solid foundations, scale and competitive advantages Pan-African leadership is in place with a commitment to creating a customer obsessed, winning culture We continue to invest while managing cost growth to deliver long term shareholder value
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36 Disclaimer Certain statements (words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘believes’, ‘intends’, ‘plans’, ‘may’, ‘will’ and ‘should’ and similar expressions in this document are forward looking. These relate to, among other things, the plans, objectives, goals, strategies, future operations and performance of Absa Group Limited and its subsidiaries. These statements are not guarantees of future operating, financial or other results and involve certain risks, uncertainties and assumptions and so actual results and outcomes may differ materially from these expressed or implied by such statements. We make no express or implied representation or warranty that the results we anticipated by such forward-looking statements will be achieved. These statements represent one of many possible scenarios and should not be viewed as the most likely or standard scenario. We are not obligated to update the historical information or forward looking statements in this document.