Interim report
Page 1
Financial results for the interim reporting period ended 30 June 2026 26 2 Absa Group Limited
Page 2
Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Report overview Icons used with this report Positive Negative Unchanged Marginal The full set of documents is available on www.absa.africa This Booklet covers the financial results for the interim reporting period ended 30 June 2026, released alongside Absa Group Limited’s (“Absa Group” or “the Group”) financial results announcement on 18 August 2026. Additional disclosures, including the Group’s Stock Exchange News Service of the JSE Limited (‘JSE’) (‘SENS’) announcement and the interim financial results presentation supplement this Booklet. The full set of documents is available on www.absa.africa. Change in naming convention and presentation • During the curr ent interim reporting period, the Group refined the naming convention used for labelling borrowed funds in the financial statements to better reflect its nature and composition. In December 2025, the line item ‘Borrowed funds’ was renamed ‘Subordinated debt’ to enhance clarity and align with market practice. Following the issuance of Flac instruments in the current period, which are contractually subordinated upon liquidation and are presented within deposits and debt funding, the line item formerly presented as ‘Borrowed funds’ (and subsequently as ‘Subordinated debt’) has been renamed 'Capital-qualifying financial liabilities’ to more accurately reflect the nature and composition of the instruments included therein. • T he Group also revised the presentation of its funding-related liabilities by combining the previously separate line items for deposits and debt securities in issue into a single line item now referred to as ‘Deposits and debt funding’, on the statement of financial position. • T hese represent a change in presentation and terminology in accordance with IAS 1 Presentation of Financial Statements and have no impact on the recognition, measurement or classification of the underlying financial liabilities, nor on the amounts reported in the current or prior reporting periods. • T he Group has applied these changes retrospectively to ensure consistency of presentation and comparability of information between periods. Business portfolio changes • T he Group introduced a new pan-African operating model as the next phase in the evolution of its organisational design. The revised model is founded on two primary dimensions, geography and customer, and is intended to enhance strategic focus, strengthen management accountability, and improve client outcomes through greater operational efficiency and the increased utilisation of technology and data. • Under the new operating model, the Group's activities are reported through three pan-African business segments: Personal and Private Banking (PPB), Business Banking (BB), and Corporate and Investment Banking (CIB). As part of this change, the former Africa Regions – Personal and Private Banking & Business Banking segment has been integrated into the PPB and BB segments. • In addition, during the second half of the 2025 financial year, the Group’s wholesale business transitioned to a customer-centric operating model, with customer profit or loss adopted as the primary performance measure. This change is intended to enhance solution delivery, sales effectiveness and overall customer experience, while supporting end-to-end product accountability and profitability. Accordingly, product revenue, costs, impairments and capital are now allocated to the segment responsible for managing the customer relationship. • F urthermore, the Group implemented enhancements to its Funds Transfer Pricing (FTP) and transfer pricing methodologies, including refinements to funding and cost allocation approaches. In addition, merchant acquiring activities were reallocated from Personal and Private Banking (PPB) to Business Banking (BB) across various markets, resulting in the reallocation of related income and expenses. Further adjustments arose from the reassignment of central support, staff-related and Treasury Execution Services costs to the segments accountable for the underlying activities. These changes also resulted in corresponding adjustments to intergroup asset and liability balances. • T he aforementioned changes led to the restatement of the segments’ financial results for the comparative periods without impacting on the overall financial position or net earnings of the Group. Financial director statement These interim financial results for the reporting period ended 30 June 2026 were prepared under the direction and supervision of the Group Financial Director, D Raju CA (SA) CFA. The Group Financial Director, who leads finance, reports directly to the Group Chief Executive Officer, K Fihla. The Group Financial Director has regular unrestricted access to the Board of Directors and to the Group Audit and Compliance Committee (GACC). Finance is responsible for establishing a strong control environment over the Group’s financial reporting processes and serves as an independent control function advising business management, escalating identified risks, and establishing policies or processes to manage risk. Board approval The Board of Directors oversees the Group’s activities and holds management accountable to the risk governance framework. They review reports, exercise independent judgement, and challenge management decisions. The Board, along with the GACC, has reviewed and approved the financial results announcement released on 18 August 2026. Absa Group Limited (1986/003934/06) The term Absa Group or the Group refers to Absa Group Limited and its subsidiaries. The Absa Group interim financial results for the reporting period ended 30 June 2026, have been prepared under the supervision of the Group Financial Director, Deon Raju CA (SA) CFA. Dividend per share 850 cen ts Key dates Dividend payment: Monday , 21 September 2026 Financial year-end results announcement: T uesday, 16 March 2027 Shareholders communications Shareholder information: pag e 140 Contact details: pag e 148
Page 3
Contents 1Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Report overview Absa Group at a glance Group performance 6 Group performance overview 7 Consolidated salient features 8 Salient features by segment 9 Profit commentary 14 Basis of presentation 16 Dividend announcement 17 Consolidated statement of comprehensive income 19 Consolidated statement of financial position 20 Consolidated statement of changes in equity 26 Consolidated statement of cash flows 28 Performance indicators and condensed notes to the consolidated financial statements Segment performance 74 Segment performance overview 76 Segment report per market segment 78 Segment report per geographical split 80 Personal and Private Banking (PPB) 108 Business Banking (BB) 118 Corporate and Investment Banking (CIB) 128 Head Office, Treasury and other operations Risk and capital management 130 Key performance metrics 131 Overview of risk weighted assets 132 Capital and liquidity risk 134 Capital risk 137 Interest rate risk in the banking book Appendices 139 Share performance 140 Shareholder information and diary 141 Glossary 146 Abbreviations and acronyms 148 Administration and contact details
Page 4
AppendicesGroup performance Segmen t performance Risk and capital management Absa Group at a glance 2Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Absa is a pan-African financial services group providing seamless customer experiences to over 13.4 million customers. We help customers achieve their aspirations and deliver positive impacts in our communities by enabling inclusive growth, building financial resilience, and driving sustainable development across the continent. We have a robust presence across 17 countries, with a primary listing on the Johannesburg Stock Exchange, and a secondary listing on A2X. We have over 130 years of operating history on the African continent. Our footprint extends to banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania, Uganda and Zambia. We have representative offices in Namibia and Nigeria, securities entities in the United Kingdom and the United States of America, a non-banking advisory subsidiary in China and a technology support service office in the Czech Republic. In April we opened our Dubai International Financial Centre branch within the United Arab Emirates, responsible for the marketing and promotion of Absa’s general banking capabilities and certain of its commercial banking products and services. Empowering Africa’s tomorrow, together... one story at a time Our core banking activities and services Servicing individuals, SMEs, corporates, multinationals, financial institution, banks, governments and development finance institutions. Delivered through three pan-African structured businesses: 3 Managing business and financial risks 1 Providing payment services and a safe place to save and invest 2 Providing funds for purchases and growth 4 Providing financial and business support 5 Protecting against risks (insurance) CIB PPB BB R2.3tn total assets 12.8% CET1 R203.9bn market capitalisation R1 908bn deposits and debt funding R1 543bn gross loans and advances 13.4m customers 37 030 employees 1 043 outlets 6 212 ATMs 14% growth in digitally active customers
Page 5
AppendicesGroup performance Segmen t performance Risk and capital management 3Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Absa Group at a glance continued Our strategy Our strategy is anchored in winning with our customers, building trust among all stakeholders, and scaling for growth – with a clear emphasis on simplicity, actionability, and disciplined execution. Our strategy is underpinned by disciplined execution and focused capital allocation. We are simplifying the Group, strengthening cost and capital discipline, and directing resources toward businesses with sustainable competitive advantage. This approach enhances operating leverage, improves resilience, and supports delivery of sustainable returns within our medium-term RoE target of 16–19%. Our strategy is built on four pillars that guide all decisions and investments: • Customer-led growth: Building trust and loyalty through consistent, intuitive, and value-driven experiences • Diversified pan-African business: Strengthening in key geographies while expanding in high-potential markets • Driving excellence: Modernising, simplifying, and reducing costs to enable faster decisions and improved efficiency • New growth opportunities: Expanding beyond traditional banking through digital platforms and value-added services RoE 16 – 19% medium term To be a leading pan-African bankOur ambition Our strategic pillars Deepen talent and succession Strong leadership and organi- sational resilience Culture for competitive advantageEnabled by Empowering Africa’s tomorrow, together... one story at a timeOur purpose Customer led growth Diversified, pan-African business Drive excellence New growth opportunities Disciplined sequencing: clear priorities for today, scaling opportuni- ties for tomorrow, and investments for future growth
Page 6
4 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management This page has been left blank intentionally
Page 7
5 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Group performance Segmen t performance Risk and capital management Appendices 5Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Group performance 6 Group performance overview 7 Consolidated salient features 8 Salient features by segment 9 Profit commentary 14 Basis of presentation 16 Dividend announcement 17 Consolidated statement of comprehensive income 19 Consolidated statement of financial position 20 Consolidated statement of changes in equity 26 Consolidated statement of cash flows 28 Performance indicators and condensed notes to the consolidated financial statements
Page 8
6 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Pre-provision profit JAWS Net asset value per share Common Equity Tier 1 R27.4bn 4% 0% 20 968 cents 5% 12.8% Jun 2025: R26.4bn Dec 2025: R53.5bn Jun 2025: (1%) Dec 2025: (1%) Jun 2025: 20 048 cents Dec 2025: 20 802 cents Jun 2025: 12.5% Dec 2025: 12.7% Key metrics Group performance overview for the interim reporting period ended Headline earnings (Rm), RoE and change (%) Jun 2024 10 180 Dec 2023 20 074 Jun 2023 10 715 Dec 2022 19 974 15.3 15.7 14.4 14.0 Dec 2024 22 059 Jun 2025 11 874 Dec 2025 24 762 Jun 2026 12 807 14.8 14.8 15.0 15.0 8% Headline earnings (Rm) ROE (%) YoY % change (Jun 2026 vs Jun 2025) Cost-to-income ratio (%) Jun 2024 52.7 Dec 2023 53.2 Jun 2023 50.6 Dec 2022 52.1 Dec 2024 53.2 Jun 2025 53.2 Dec 2025 53.8 Jun 2026 53.4 Credit loss ratio (%) Dec 2025 Jun 2026 0.88 0.94 Dec 2022 0.96 Jun 2023 1.27 Dec 2023 1.18 Jun 2024 1.23 Dec 2024 1.03 Jun 2025 1.00 Headline earnings per share (cents), dividend per share (cents) and change (%) 2 422 1 370 1 228 685 2 662 1 460 1 432 785 2 987 1 635 1 545 850 1 293 685 2 452 1 300 Dec 2025 Jun 2026Dec 2022 Jun 2023 Dec 2023 Jun 2024 Dec 2024 Jun 2025 HEPS DPS 8% YoY % change (Jun 2026 vs Jun 2025)
Page 9
7 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated salient features for the reporting period ended 30 June 31 December 2026 2025 Change 2025 Note Rm Rm % Rm Statement of comprehensive income (Rm) Income 58 791 56 487 4 115 697 Operating expenses (31 393) (30 044) 4 (62 235) Pre-provision profit 27 398 26 443 4 53 462 Credit impairment charges (7 099) (7 173) (1) (13 410) Profit attributable to ordinary equity holders 12 579 11 231 12 22 214 Headline earnings 1 12 807 11 874 8 24 762 Statement of financial position Net asset value (NAV) (Rm) 173 638 166 282 4 172 411 Gross loans and advances (Rm) 8 1 543 069 1 464 828 5 1 488 685 Total assets (Rm) 2 282 386 2 159 759 6 2 239 479 Deposits and debt funding (Rm) 1 908 464 1 774 696 8 1 854 348 Gross loans to deposits and debt funding ratio (%) 80.9 82.5 (2) 80.3 Average loans to deposits and debt funding ratio (%) 78.8 79.3 (1) 79.0 Financial performance (%) Return on equity (RoE) 15.0 14.8 15.0 Return on average assets (RoA) 1.12 1.14 1.13 Return on risk-weighted assets (RoRWA) 2.10 2.03 2.06 Stage 3 loans ratio on gross loans and advances 5.30 5.90 5.63 Operating performance (%) Net interest margin on average interest-bearing assets 4.46 4.58 4.53 Credit loss ratio on loans and advances 0.94 1.00 0.88 Non-interest income as a percentage of total income 36.4 35.7 36.1 Cost-to-income ratio 53.4 53.2 53.8 JAWS (0) (1) (1) Effective tax rate 25.7 25.9 26.2 Share statistics (million) Number of ordinary shares in issue 894.4 894.4 894.4 Number of ordinary shares in issue (excluding treasury shares) 828.1 829.4 828.8 Weighted average number of ordinary shares in issue 828.7 829.4 829.0 Diluted weighted average number of ordinary shares in issue 844.2 834.5 837.8 Share statistics (cents) Basic earnings per ordinary share (EPS) 1 517.9 1 354.1 12 2 679.6 Diluted basic earnings per ordinary share (DEPS) 1 490.0 1 345.8 11 2 651.5 Headline earnings per ordinary share (HEPS) 1 1 545.4 1 431.6 8 2 987.0 Diluted headline earnings per ordinary share (DHEPS) 1 1 517.1 1 422.9 7 2 955.5 NAV per ordinary share 20 968 20 048 5 20 802 Tangible NAV per ordinary share 19 248 18 122 6 19 058 Dividend per ordinary share 850 785 8 1 635 Dividend payout ratio (%) 56 55 (2) 55 Capital adequacy (%) Absa Group Limited 16.1 15.2 15.8 Absa Bank Limited 16.5 16.0 16.2 Common Equity Tier 1 (%) Absa Group Limited 12.8 12.5 12.7 Absa Bank Limited 12.0 12.2 11.9
Page 10
8 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Salient features by segment for the reporting period ended 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Headline earnings (Rm) Personal and Private Banking 4 106 3 651 12 8 872 Business Banking 2 743 2 603 5 5 354 Corporate and Investment Banking 6 192 6 109 1 12 690 Head Office, Treasury and other operations (234) (489) (52) (2 154) Return on average risk-weighted assets (%) Personal and Private Banking 2.23 2.03 2.44 Business Banking 3.01 2.78 2.89 Corporate and Investment Banking 2.39 2.57 2.55 Return on equity (%) Personal and Private Banking 15.2 13.9 16.7 Business Banking 24.6 23.1 24.0 Corporate and Investment Banking 19.2 20.6 20.6 Credit loss ratio (%) Personal and Private Banking 1.87 1.96 1.70 Business Banking 0.63 0.64 0.56 Corporate and Investment Banking 0.17 0.17 0.21 Gross loans and advances (Rm) Personal and Private Banking 649 523 628 055 3 634 188 Business Banking 190 696 176 977 8 180 549 Corporate and Investment Banking 682 555 622 220 10 653 835 Head Office, Treasury and other operations 20 295 37 576 (46) 20 113 Deposits and debt funding (Rm) Personal and Private Banking 471 260 464 774 1 467 393 Business Banking 313 757 299 151 5 308 818 Corporate and Investment Banking 1 020 792 914 953 12 988 765 Head Office, Treasury and other operations 102 655 95 818 7 89 372
Page 11
9 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Profit commentary The following commentary reflects the year-on-year (YoY) change in the Group’s financial results for the six months ended 30 June 2026 versus the six months ended 30 June 2025. Financial information included is the sole responsibility of the Board and has not been reviewed or reported on by the Group’s external auditors. Salient features • Headline earnings incr eased 8% to R12 807m. • Dilu ted headline earnings per ordinary share (DHEPS) increased 7% to 1 517.1 cents. • Declar ed an 8% higher ordinary dividend per share (DPS) of 850 cents. • In t erms of divisional headline earnings, Corporate and Investment Banking (CIB) rose 1% to R6 192m, Personal and Private Banking (PPB) increased 12% to R4 106m, and Business Banking (BB) grew 5% to R2 743m. The loss in Head Office, Treasury and other operations fell 52% to R234m. • R eturn on equity (RoE) improved to 15.0% from 14.8%. • R evenue grew 4% to R58.8bn and operating expenses rose 4% to R31.4bn, producing a slightly higher cost-to-income ratio of 53.4%. • P re-provision profit increased 4% to R27.4bn. • Cr edit impairment charges declined 1% to R7.1bn, resulting in a 0.94% credit loss ratio (CLR) from 1.00%. • T he Group’s common equity tier 1 (CET1) capital ratio rose to 12.8% from 12.5%, to remain above regulatory requirements and the top end of the Board’s target range of 11.0% to 12.5%. • T he net asset value (NAV) per ordinary share grew 5% to 20 968 cents. Basis of preparation of constant currency financial information The constant currency (CCY) financial information presented in this section is considered pro forma financial information in terms of the JSE Limited Listings Requirements including the Guidance Letter: Preparation of constant currency information. Constant currency pro forma financial information is presented to illustrate the impact of changes in the Group’s major foreign currencies. The CCY pro forma financial information has been prepared for illustrative purposes only and, because of its nature, may not fairly present the Group’s financial position, changes in equity, results of operations or cash flows. In determining the CCY pro forma financial information, amounts denoted in foreign currencies for the current period and prior period have been converted to Rand using the appropriate exchange rates as at 31 December 2025. The CCY pro forma financial information is the responsibility of the directors. This information has not been reviewed or reported on by the Group’s external auditors. Operating environment The global economy entered 2026 on a better footing, as worries about the impact of US tariffs waned and monetary policy in the US, UK and Euro Area was expected to gradually ease. This backdrop was disrupted from the end of February by the onset of military conflict in the Middle East, which quickly closed the strategic global trade chokepoint the Strait of Hormuz, severely disrupting global trade in hydrocarbons, fertilisers and other key commodities. From the low-$70s prior to the conflict, crude oil prices rose well above $100 per barrel, with refined products such as diesel, aviation fuel and LNG rising more steeply. Initial estimates were that the conflict could slow economic growth, spike inflation and generate higher interest rates globally. Subsequent evidence suggests that the global economy was generally more resilient to these supply shocks than initially feared, as few absolute shortages of key commodities were reported and prices of oil returned to pre-war levels by the end of the second quarter on tentative signs of ceasefire and trade routes re-opening. South Africa (SA) saw a sixth consecutive quarter of economic growth, as real GDP rose 0.5% in the first quarter. More broadly, consumer inflation was comfortably inside the Reserve Bank’s inflation tolerance band in the first quarter. Business confidence experienced a five-year high, buoyed by the country’s progress on structural reforms and on improved stability with the GNU, while lower interest rates and inflation helped boost consumer confidence. Vehicle sales remained robust and housing market strength broadened. Events in the Middle East introduced significant headwinds for the macroeconomic outlook for South Africa. Both confidence series declined sharply in the second quarter, as the Rand weakened, fuel prices jumped significantly, and CPI inflation rose to 5% by June. Against previous expectations that the SA Reserve Bank would cut rates further during 2026, the May MPC meeting increased the policy rate 25bp and the SARB signalled a willingness to tighten conditions further should inflation conditions warrant it. African economies also entered 2026 in generally good shape, having embarked on a series of macroeconomic reforms in recent years that saw important improvements in public finances and external balances, while continued infrastructure investment and lower inflation and lending rates provided further impetus to growth. GDP growth was resilient in the first quarter, before facing some headwinds in the second quarter as inflation nudged higher in most markets due to the fallout from the Middle East war. Across our Africa Regions (AR) countries, published data show that East African markets continued to lead regional growth, with all three of our presence markets expanding above 5% in the first quarter. Brisk growth also continued in Zambia, with the agriculture sector performing strongly following the devastating drought two years earlier. Improved affordability levels boosted Ghana’s services sector, with overall growth also comfortably above 6% in the first quarter. Meanwhile, Botswana’s economy expanded 3.5% in the first quarter, following a rebound in diamond output. Exceptions to this positive momentum across our region were Mozambique and Seychelles, where growth stalled. Mozambique’s fiscal challenges remained a major constraint on growth. Given stronger economic and inflation levels, rates easing continued in some key markets.
Page 12
10 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Profit commentary Overview of results Group headline earnings grew 8% to R12 807m and DHEPS increased 7% to 1 517.1 cents. The ordinary DPS rose 8% to 850 cents, a 56% payout ratio. The Group’s RoE improved to 15.0% from 14.8% and its return on average assets was 1.12% from 1.14%. Revenue grew 4% to R58 791m, as net interest income rose 3% to R37 365m and non-interest income increased 6% to R21 426m. The Group’s net interest margin on average interest-bearing assets declined to 4.46% from 4.58%, predominantly due to deposit margin compression. Net loans and advances grew 6% to R1 493bn, while deposits and debt funding rose 8% to R1 908bn. Operating expenses increased 4% to R31 393m, resulting in a slightly higher cost-to-income ratio of 53.4% from 53.2%. Pre-provision profit grew 4% to R27 398m. Credit impairment charges declined 1% to R7 099m, producing a 0.94% credit loss ratio from 1.00%. PPB headline earnings rose 12% to R4 106m, while BB grew 5% to R2 743m and CIB increased 1% to R6 192m. The loss in Head Office, Treasury and other operations dropped 52% to R234m. On a geographic basis, South African headline earnings increased 17% to R9 188m, while Africa Regions declined 10% to R3 619m. Africa Regions contributed 30% of Group revenue and 28% of headline earnings. Group performance Statement of financial position Total assets rose 6% to R2 282bn, driven by 6% higher net loans and advances, a 41% increase in cash, cash balances and balances with central banks, and 9% growth in trading portfolio assets. Loans and advances Total net loans and advances grew 6%, to R1 493bn, reflecting 6% higher net loans and advances to customers to R1 405bn, while net loans and advances to banks decreased 4% to R89bn. Excluding flat reverse repurchase agreements, total net loans grew 6% to R1 371bn. PPB net loans and advances to customers rose 4% to R603bn, as in South Africa Home Loans grew 2% to R319bn and Vehicle and Asset Finance (VAF) increased 11% to R135bn. BB net loans and advances to customers grew 9% to R185bn, driven by growth across its portfolio in South Africa and Africa Regions. CIB net loans and advances to customers increased 9% to R612bn, with CIB SA up 10% to R516bn, while CIB AR grew 5% to R96bn, or 13% in CCY. Funding Total deposits and debt funding rose 8% to R1 908bn, with deposits due to customers up 5% to R1 469bn. Total deposits from banks grew 17% to R206bn and total debt funding rose 19% to R233bn. Excluding 17% higher reverse repurchase agreements, total deposits and debt funding increased 7% to R1 749bn. Total deposits constituted 88% of Group funding. PPB customer deposits rose 1% to R471bn. PPB SA grew 2% to R371bn, with fixed deposits decreasing 9% to R85bn and savings and transmission deposits 6% higher at R209bn, while cheque account deposits grew 6% to R43bn. PPB AR declined 1% to R101bn, despite growing 9% in CCY. BB customer deposits increased 5% to R314bn, reflecting growth in transactional balances. BB SA customer deposits rose 5% to R263bn, with transactional balances up 10%. BB AR customer deposits grew 5% or 13% in CCY to R50bn, driven by growth in transactional accounts. Total CIB deposits rose 10%, to R841bn, with customer deposits up 8% to R690bn, while bank deposits grew 21% to R152bn. CIB SA customer deposits grew 9% to R569bn, while CIB AR customer deposits rose 1% or 9% in CCY to R121bn. Net asset value The Group’s NAV increased 4% to R174bn and NAV per share grew 5% to 20 968 cents. Other reserves decreased 15% to R8bn, given a substantial swing in the foreign currency translation reserve and a lower cash flow hedging reserve. During the period, the Group generated R12.6bn of profit and paid dividends of R7.1bn. Capital to risk-weighted assets (RWA) Group RWA grew 3% to R1 253bn, due to 3% higher credit risk RWA, while market risk rose 18% although it remains small at 5% of the total. The Group remains well capitalised, comfortably above minimum regulatory capital requirements. The Group CET1 ratio increased to 12.8% from 12.5%, slightly above the top end of the Board target range of 11.0% to 12.5%, and well above regulatory requirements. The Group Tier 1 ratio increased to 14.4% from 14.0%, while the total capital adequacy ratio rose to 16.1% from 15.2%. Statement of comprehensive income Net interest income Net interest income increased 3%, and 5% in CCY, to R37 365m, while average interest-bearing assets rose 6% to R1 688bn. The Group’s net interest margin decreased to 4.46% from 4.58%, predominantly due to equity and liability margin compression, given lower policy rates and competitive pricing pressures. South Africa’s net interest margin was stable at 3.78% from 3.77%, while Africa Regions declined to 7.35% from 7.82% reflecting lower policy rates. Customer loans and advances had a 6bp positive impact on the Group margin, with pricing contributing 9bps on improved PPB SA Unsecured Lending pricing, partly offset by pricing pressure in CIB SA. Loan composition reduced the group net interest margin by 3bps, given faster growth from Investment Banking SA and declining PPB SA Personal Loans. Customer deposits reduced the overall margin by 8bps, predominantly due to lower policy rates in Africa Regions, as well as compression in CIB SA due to competitive pricing. In SA, the liability endowment had a 2bp negative impact due to the lower prime rate, while lower rates in Africa Regions reduced the group margin by 9bps.
Page 13
11 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Group performance Statement of comprehensive income continued Profit commentary South Africa’s equity endowment reduced the margin by 2bps, given lower rates. Africa region’s equity endowment was a 4bp drag given lower rates (mostly in Ghana and Kenya) and lower regulatory capital. In South Africa, the structural hedge released a benefit of R348m, from a R280m charge in 1H25, contributing 8bps to the total margin. The after tax cashflow hedging reserve reflected a credit of R0.6bn from a credit of R1.2bn at 30 June 2025 (and a credit of R2.8bn at 31 December 2025). The average structural rate on the programme was 7.53% from 7.25%. Non-interest income Non-interest income increased 6%, and 7% in CCY, to R21 426m, accounting for 36% of Group revenue. Net fee and commission income grew 3% to represent 63% of total non-interest income. Fee and commission income rose 5%, as transactional fees and commissions grew 5% and merchant income increased 4%. Fee and commission expense increased 17%, driven by higher clearing and bank charges. Net trading income excluding the impact of hedge accounting increased 4% to R5 335m, with Global Markets SA up 8% and Global Markets AR declining 1%. In aggregate, net insurance income increased 8%, driven by growth in Insurance SA with Africa Regions dropping 70%, largely due to selling three entities in the first half of 2025. Credit impairment charges Credit impairment charges declined 1% to R7 099m, improving the Group credit loss ratio to 94bps from 100bps. PPB credit impairments reduced 1% to R5 998m, resulting in a credit loss ratio of 1.87% from 1.96%. PPB SA credit impairments grew 1% to R5 354m, reflecting deteriorating forward-looking macroeconomic forecasts. Within this, Unsecured Lending credit impairments declined 3% to R3 186m, producing a 7.49% credit loss ratio, driven by a lower Card charge. Personal Loans credit impairments grew 5% despite a reduced book, mainly due to non-recurring once-off benefits in the base and the less favourable forward-looking macroeconomic outlook. Home Loans credit impairments increased 8%, producing a 0.50% credit loss ratio, mainly due to weaker forward-looking macroeconomic assumptions and continued pressure in the legal book, while the pre-legal book improved. Vehicle and Asset Finance credit impairments increased 4%, although its credit loss ratio improved to 1.59%. PPB Africa Regions credit impairments fell 18% or 11% in CCY to R644m, improving its credit loss ratio to 1.81%. It benefited from stronger operating conditions in key markets, disciplined risk management, enhanced models and robust collections and recoveries. BB credit impairments grew 5% to R574m, producing a flat credit loss ratio of 0.63%. BB SA decreased 3%, while BB Africa Regions increased materially off a low base that included material once-off recoveries. CIB credit impairments increased 16% or 29% in CCY to R577m, resulting in a flat credit loss ratio of 0.17%. CIB SA rose 4%, due to higher performing book charges, while CIB Africa Regions grew 42% on increased performing loan charges. Group non-performing loans (NPLs) decreased 5% to R82bn, constituting 5.3% of gross loans and advances from 5.9% (and 5.6% as at 31 December 2025), driven by lower NPLs across all business units. Total Group coverage declined to 3.57% from 3.99% (and 3.72% as at 31 December 2025). Stage 1 coverage remained flat at 0.60%, while stage 2 decreased to 5.40% from 5.74%. Stage 3 coverage decreased slightly to 45.5% from 46.9% due to writing off highly covered single names in CIB SA together with model enhancements and improved portfolio performance in PPB AR. Operating expenses Operating expenses grew 4% to R31 393m, increasing the cost-to-income ratio to 53.4% from 53.2%. Staff costs rose 6% to R18 250m, or 58% of total operating expenses. Non-staff costs grew 3% to R13 143m. Within this, IT costs increased 6%, given continued investment in new digital capabilities including cybersecurity, cloud and data. Amortisation of intangible assets declined 6%, reflecting 11% lower goodwill and intangible assets of R14bn. Total IT spend, including staff, amortisation and depreciation, increased 7% to R8 779m, or 28% of Group expenses. Professional fees grew 7% given continued investment in technology initiatives. Marketing costs declined 9%, as brand and sponsorship spend reduced, combined with non- recurring costs in the base. Property costs decreased 2% and depreciation rose 2% as continued optimisation of the Group’s property portfolio offset investment in retail branches. Equipment costs grew by 11%, primarily due to investment in card acquiring point-of-sale devices. Cash transportation costs increased 8% on higher participation costs and fuel prices. Lastly, other operating costs rose 41%, given higher fraud and losses, and increased depositor insurance costs in Africa Regions. Other expenses Other expenses decreased 19% to R1 595m, given the non- recurring impairment of hyperinflated asset balances in Ghana (non-headline) in the prior year, which outweighed 4% higher indirect taxation. Taxation The taxation expense increased 7% to R4 841m, slightly below 8% growth in profit before tax, resulting in an effective tax rate of 25.7% from 25.9%.
Page 14
12 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Profit commentary Segment performance The Group introduced a new pan-African operating model with its activities reported as three pan-African business segments: PPB, BB and CIB. As part of this change, the former Africa Regions – Personal and Private Banking & Business Banking segment has been integrated into the PPB and BB segments. In addition, during the second half of the 2025 financial year, the Group’s wholesale business transitioned to a customer-centric operating model, with customer profit or loss adopted as the primary performance measure. Accordingly, product revenue, costs, impairments and capital are now allocated to the segment responsible for managing the customer relationship. Furthermore, the Group enhanced its Funds Transfer Pricing and transfer pricing methodologies, including refinements to funding and cost allocation approaches. In addition, merchant acquiring activities were reallocated from PPB to BB across various markets, resulting in the reallocation of related income and expenses. Further adjustments arose from reassigning central support, staff-related and Treasury Execution Services costs to the segments accountable for the underlying activities. These changes also resulted in corresponding adjustments to intergroup asset and liability balances. The aforementioned changes led to the restatement of the segments’ financial results for the comparative periods without impacting on the overall financial position or net earnings of the Group. Corporate and Investment Banking Headline earnings grew 1%, or 2% in CCY, to R6 192m, driven by 2% pre-provision profit growth that outweighed 16% higher credit impairments. Revenue grew 3% to R18 238m. Net interest income increased 1%, with customer loans and advances and deposits up 9% and 8% respectively, largely offset by 18bps net interest margin compression. Non-interest income rose 8%, driven by 35% growth in Investment Banking due to fee growth from increased client activity and capital raising activities. Global Markets non-interest income grew 8%, while Transactional Banking (previously Corporate Banking) grew 2% as increased price competition partially offset higher transaction volumes. Operating expenses grew 5% to R8 735m, producing a slightly higher cost-to-income ratio of 47.9%. The cost growth reflected inflationary pressure across key markets and continued investment in people and technology. Credit impairments rose 16% to R577m, resulting in a flat credit loss ratio of 0.17%. CIB’s RoE declined to 19.2% from 20.6%. It contributed 47% of Group headline earnings, excluding Head Office, Treasury and other operations. Within CIB, Investment Banking headline earnings grew 8% to R2 572m, as pre-provision profit grew 6% and credit impairments decreased 5%. Global Markets headline earnings grew 9% to R2 160m, driven by 10% revenue growth, with South Africa up 19%. Transactional Banking headline earnings fell 13% to R1 508m, given 2% lower revenue and substantially higher credit impairments. CIB SA headline earnings grew 13% to R3 732m, given 15% higher pre-provision profit on the back of 14% non-interest income growth and costs contained to 3% growth. CIB AR headline earnings fell 12%, or 11% in CCY, to R2 460m, due to 3% lower revenue and 42% higher credit impairments. Personal and Private Banking Headline earnings increased 12%, or 15% in CCY, to R4 106m, due to 4% higher pre-provision profit and 1% lower credit impairments. Revenue grew 4% to R29 314m, driven by 4% higher non-interest income, with net fee and commission income up 3%. Net interest income increased 4% due to an improved net interest margin and 4% growth in net customer loans. Operating expenses grew 5% to R16 396m reflecting inflation, continued investment in digital capabilities and technology and higher fraud in South Africa. PPB’s cost-to-income ratio increased to 55.9% from 55.7%. It generated an RoE of 15.2% from 13.9% and contributed 32% of Group headline earnings excluding Head Office, Treasury and other operations. PPB South Africa headline earnings grew 10% to R3 278m, due to 5% higher pre-provision profits on flat operating JAWS. Within PPB SA, Transactions and Deposits headline earnings increased 5% to R1 245m, as 2% pre-provision profit outweighed 19% higher credit impairments. Home Loans headline earnings grew 2% to R750m, driven by 3% higher pre-provision profit, while credit impairments rose 8%. Insurance SA headline earnings declined 2% to R505m. Life Insurance SA profit grew 1% to R444m, while Non-Life decreased 15% to R152m due to lower investment returns. Vehicle and Asset Finance headline earnings grew 22% to R366m, driven by 10% higher pre-provision profit, as revenue increased 6% and costs rose 1%. Unsecured Lending headline earnings increased 70% to R328m, given 5% pre-provision profit growth and 3% lower credit impairments. Within Unsecured Lending, Card headline earnings rose 82% to R365m while Personal Loans made a R38m loss. PPB Africa Regions headline earnings grew 23% to R828m, or 36% in CCY. Its Banking Operations headline earnings grew 14% to R787m, or 26% in CCY, largely due to 18% lower credit impairments and non-interest income increasing 8% or 15% in CCY. Business Banking Headline earnings increased 5%, or 6% in CCY, to R2 743m, due to 2% higher pre-provision profit. Revenue grew 5% to R10 574m. Net interest income rose 4%, on 9% net customer loan growth and slight margin compression due to lower policy rates in Africa Regions. Non-interest income grew 7%, driven by increased client activity and higher lending fees, partially offset by lower payments revenue. Operating expenses grew 7% to R5 856m, reflecting inflation and investments, resulting in a 55.4% cost-to-income ratio. Credit impairments rose 5%, resulting in a flat 0.63% credit loss ratio. BB generated an RoE of 24.6% from 23.1% and contributed 21% of Group headline earnings excluding Head Office, Treasury and other operations.
Page 15
13 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Profit commentary Segment performance Business Banking continued BB South Africa headline earnings grew 10% to R2 397m, given 6% growth in pre-provision profit and 3% lower credit impairments. BB Africa Regions headline earnings fell 18% to R346m, down 16% in CCY, as net interest income declined 4% on lower policy rates and credit impairments rose substantially off a low base that included large non-recurring recoveries. Head Office, Treasury and other operations The headline earnings loss decreased 52% to R234m, reflecting a stronger performance from Treasury South Africa, a reversal of Africa Regions sovereign portfolio credit impairments from the prior period and reduced operating expenses, supported by various cost initiatives. Geographic split South Africa Headline earnings increased 17% to R9 188m, driven by 12% higher pre-provision profit. Revenue grew 8% to R41 288m, constituting 70% of Group revenue. Net interest income rose 7%, given a stable margin and customer loan and deposit growth of 7% and 6%, respectively. Non-interest income grew 9%, driven by strong growth in Global Markets SA and Investment Banking SA. Operating expenses rose 4% to R21 852m, resulting in a 52.9% cost-to- income ratio from 54.7%. Credit impairments rose 1% to R6 193m, producing a credit loss ratio of 0.96% from 1.03%, as growth in PPB and CIB outweighed BB’s lower charge. South Africa contributed 72% of Group earnings and its RoE improved to 15.9% from 14.4%. Africa Regions Headline earnings decreased 10% to R3 619m, down 8% in CCY. Pre-provision profit fell 12% to R7 962m, as revenue declined 3% (up 1% in CCY), to R17 503m. Net interest income decreased 5% (flat in CCY), given substantial net interest margin compression due to lower policy rates in key markets. Non-interest income declined 1% (up 3% in CCY), due largely to the stronger Rand and lower CIB Transactional Banking non-interest income. Operating expenses grew 5% (or 10% in CCY), to R9 541m, producing a 54.5% cost-to- income ratio from 50.1%. Credit impairments decreased 11% to R906m, reducing its credit loss ratio to 0.82% from 0.86%. Africa Regions contributed 28% of Group earnings and its RoE declined to 15.6% from 16.9%. Prospects The outlook for the global economy remains particularly uncertain. Events in the Middle East remain volatile, with oil markets trading in a wide range during July. The US has announced a new round of tariffs on dozens of countries. Chinese data suggests it is growing somewhat below the government’s target. Volatility in global equity markets warrant attention. Monetary policymakers everywhere carefully weigh the challenge posed by higher inflation and softening economic growth. On top of this, current meteorological forecasts suggest an elevated probability of a significant El Niño weather event from late 2026 and into 2027, bringing with it the threat of extreme drought or extreme rain in many parts of the world, with potential knock-on effects on global food prices and more. Against this backdrop we expect the South African economy to grow by 1.5% this year, up slightly from 2025’s 1.1%. In our central scenario, events in the Middle East do not prevent energy prices from retreating significantly from the crisis highs, even if they remain somewhat elevated as compared to pre-conflict levels. El Niño may present a challenge to parts of South Africa’s agricultural sector from late 2026, but record crop surpluses in recent growing seasons should help contain food price inflation. As evidenced by the split late July Reserve Bank MPC vote of 4:2 in favour of keeping the policy rate on hold against a further 25bp rise, the near-term outlook for interest rates is difficult to predict. We expect rates to remain unchanged into early 2027, noting that in the alternative case of a small further rise in rates, the economic outlook would not be significantly altered. The outlook for our presence economies remains constructive despite the uncertain global backdrop and we project weighted real GDP growth in 2026 of 5.1%, just slightly ahead of last year’s 5.0%. We expect a notable improvement in Botswana growth as the diamond sector is rebounding strongly. We remain most concerned about Mozambique, where fiscal and debt sustainability concerns are severe. However, we expect commodity producing markets to continue to benefit from elevated prices, while most commodity importing countries still enjoy low inflation and lending rates that will likely underpin economic activity. Other key drivers of growth are ongoing infrastructure investment, multilateral support and ongoing reforms. Downside risks pertaining to the fallout from the Middle East crisis remain significant, along with potential adverse weather conditions. Based on these assumptions, and excluding further major unforeseen political, macroeconomic, or regulatory developments, our guidance for 2026 is as follows: We expect low- to mid-single digit revenue growth. We expect high single digit growth in customer loans and mid- to high single digit growth in customer deposits. The Group’s credit loss ratio is expected to be similar to 2025 and in the middle of our through-the-cycle target range of 75 to 100 basis points. We expect low- to mid-single digit growth in operating expenses, producing slightly negative operating JAWS and low- to mid-single digit pre-provision profit growth. Consequently, we expect an RoE of around 15%. We expect the Group CET1 ratio to finish 2026 at the top end of our Board target range of 11.0% to 12.5%. Finally, we expect to maintain a dividend payout ratio of 55% for 2026.
Page 16
14 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Basis of presentation IFRS reporting The Group’s financial results have been prepared in accordance with IFRS® Accounting Standards, the Financial Pronouncements as issued by the Financial Reporting Standards Council and SAICA Financial Reporting Guides as issued by the Accounting Practices Committee, the JSE Listings Requirements, and the provisions of the South African Companies Act, 71 of 2008. The Group’s regulatory capital and risk exposures have been prepared in accordance with the Basel Committee on Banking Supervision Pillar 3 disclosure requirements and Regulation 43 of the Regulations relating to Banks, issued in terms of the Banks Act, 1990 (Act No. 94 of 1990), where not superseded by the Pillar 3 disclosure requirements. The preparation of financial information requires the use of estimates and assumptions about future conditions. Use of available information and application of judgement are inherent in the formation of estimates. The accounting policies that are deemed critical to the Group’s results and financial position, in terms of the materiality of the items to which the policies are applied, and which involve a high degree of judgement include impairment of financial assets measured at amortised cost; capitalization; amortisation and impairment of internally generated intangible assets; fair value measurements; consolidation of structured or sponsored entities; post-retirement benefits; provisions; income taxes; share-based payments; translation of foreign currencies; offsetting of financial assets and liabilities; and liabilities arising from claims made under short and long-term insurance contracts. The Directors assess the Group’s future performance and financial position on an ongoing basis and have no reason to believe that the Group will not be a going concern in the reporting period ahead. For this reason, these consolidated financial results are prepared on a going concern basis. Accounting policies The accounting policies applied in preparing the Group’s interim financial results are consistent with those in place for the Group’s annual consolidated financial statements for the reporting period ended 31 December 2025. Standards, amendments to standards and circulars adopted for the first time in the current reporting period The adoption of the amendments below did not have a material impact on the Group’s financial position, performance or cash flows presented, but may result in additional disclosures being considered for inclusion in the Group’s IFRS-compliant Annual Financial Statements: • Amendmen ts resulting from annual improvements for the following standards – Initial measur ement of trade receivables – The amendment removes the conflict between IFRS 9 and IFRS 15 Revenue from Contracts with Customers (IFRS 15) over the amount at which a trade receivable is initially measured. Under IFRS 15, a trade receivable may be recognised at an amount that differs from the transaction price, for example, when the transaction price is variable. Conversely, IFRS 9 requires that entities initially measure trade receivables without a significant financing component at the transaction price. IFRS 9 has been amended to require entities to initially measure a trade receivable without a significant financing component at the amount determined by applying IFRS 15. – Accoun ting for the derecognition of a lease liability by a lessee – The amendment states that when lease liabilities are derecognised under IFRS 9, the difference between the carrying amount and the consideration paid is recognised in profit or loss. The amendment applies only to lease liabilities extinguished on or after the beginning of the annual reporting period in which the amendment is first applied. – Minor amendments to IFRS 1, IFRS 10 and IAS 7. • Se ttlement of financial liabilities by electronic payments – IFRS 9 T he amendments clarify when a financial asset or financial liability is recognised and derecognised and provide an exception for certain financial liabilities settled using an electronic payment system. The exception allows entities to derecognise their financial liabilities before the settlement date when it uses an electronic payment system that meets specific criteria. While these amendments have been adopted during the current reporting period, the Group has elected not to apply the derecognition exception to any of its current electronic payment systems as doing so would not have a material impact on the Group’s financial position, financial performance or cash flows. • Classifica tion of financial assets with a contingent feature – IFRS 9 and IFRS 7 F ollowing the post-implementation review of the classification and measurement requirements, IFRS 9 has been amended to include guidance on the classification of financial assets, including those with contingent features. Corresponding amendments to IFRS 7 introduced enhanced disclosure requirements for financial assets and financial liabilities that contain certain contingent features.
Page 17
15 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Basis of presentation Accounting policies Standards, amendments to standards and circulars adopted for the first time in the current reporting period continued • E quity instruments designated at fair value through other comprehensive income – IFRS 7 T he amendments require additional disclosures for investments in equity instruments that are measured at fair value with gains or losses presented in other comprehensive income (FVOCI). • N on-recourse assets and contractually linked instruments – IFRS 9 T he amendments clarify the treatment of non-recourse assets and contractually linked instruments. • Con tracts Referencing Nature-dependent Electricity – IFRS 9 and IFRS 7 T o allow companies to better reflect the financial effects of nature dependent electricity contracts, which are often structured as power purchase agreements (PPAs), amendments have been made to IFRS 9 and IFRS 7. These amendments provide guidance on the ‘own-use’ exemption for purchasers of electricity under PPAs, hedge accounting requirements for companies that hedge their purchases or sales of electricity using PPAs and new disclosure requirements to enable investors to better understand the effects of PPAs. New standards and interpretations not yet adopted A number of new standards and amendments to existing standards, applicable to Absa Group Limited, have been issued but not yet effective for the reporting period. These have not been applied in preparing the unaudited consolidated interim financial results. Unless specifically noted to the contrary, these amendments are not expected to have a material impact on the Group. • P resentation and disclosure in financial statements – IFRS 18 IFRS 18, Presentation and Disclosure in Financial Statements, is effective for annual reporting periods beginning on or after 1 January 2027, with early adoption permitted. The standard introduces new requirements for the presentation and disclosure of information in financial statements, including specified subtotals in the statement of profit or loss, requirements relating to the classification of income and expenses, disclosures of management-defined performance measures (MPMs), and enhanced guidance on the aggregation and disaggregation of information. T he Group continues to assess the impact of IFRS 18 on its financial statement presentation and disclosures. During the current reporting period, the Group has progressed its implementation activities, including an assessment of reporting processes and systems and identification of management-defined performance measures. The Group continues to evaluate the detailed presentation and disclosure impacts of adopting the standard. Based on the implemen tation process to date, IFRS 18 is not expected to have an impact on the recognition or measurement of transactions but is expected to affect the presentation and disclosure of information in the financial statements. • F air value option for investments in associates and joint ventures – IAS 28 T he amendments clarify to which investments in associates and joint ventures an entity is eligible to apply the fair value measurement option, including the meaning of a ‘similar entity’. They clarify that eligibility is assessed at the level of the entity that directly holds the investment. The amendments further explain the interaction between the fair value option in IAS 28 and the classification requirements of IFRS 18. T he amendments are effective for annual reporting periods beginning on or after the date that an entity first applies IFRS 18 and are applied retrospectively. Events after the reporting period Management has assessed events occurring after the reporting period up to the date of approval of the financial results and has determined that there were no material events per IAS 10 Events after the Reporting Period requiring adjustment to, or disclosure in, these financial results. On behalf of the Board René van Wyk D Raju Group Chairman Gr oup Financial Director Johannesburg 18 August 2026
Page 18
16 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Dividend announcement Declaration of interim ordinary dividend number 78 Shareholders are advised that an ordinary dividend of 850 cents per ordinary share was declared on 18 August 2026, for the interim reporting period ended 30 June 2026. The ordinary dividend is payable to shareholders recorded in the register of members of the Company at the close of business on Friday, 18 September 2026. The directors of Absa Group Limited confirm that the Group will satisfy the solvency and liquidity test immediately after completion of the dividend distribution, and for the next 12 months. The dividend will be subject to local dividends withholding tax at a rate of 20%. In accordance with paragraph 7.23 of the JSE Listings Requirements, the following additional information is disclosed: • T he dividend has been declared out of income reserves. • T he local dividend tax rate is 20%. • T he gross local dividend amount is 850 cents per ordinary share for shareholders exempt from the dividend tax. • T he net local dividend amount is 680 cents per ordinary share for shareholders liable to pay the dividend tax. • Absa Gr oup Limited currently has 894 376 907 ordinary shares in issue (includes 66 281 564 treasury shares). • Absa Gr oup Limited’s income tax reference number is 9150116714. In compliance with the requirements of Strate, the electronic settlement and custody system used by the JSE Limited, the following salient dates for the payment of the dividend are applicable: Last day to trade cum dividend Tuesday, 15 September 2026 Shares commence trading ex-dividend Wednesday, 16 September 2026 Record date Friday, 18 September 2026 Payment date Monday, 21 September 2026 Share certificates may not be dematerialised or rematerialised between Wednesday, 16 September 2026 and Friday, 18 September 2026, both dates inclusive. On Monday, 21 September 2026, the dividend will be electronically transferred to the bank accounts of certificated shareholders. The accounts of those shareholders who have dematerialised their shares (which are held at their participant or broker) will also be credited on Monday, 21 September 2026. On behalf of the Board N R Drutman Company Secretary Johannesburg 18 August 2026 Absa Group Limited is a company domiciled in South Africa. Its registered office is 7th Floor, Absa Towers West, 15 Troye Street, Johannesburg, 2001.
Page 19
17 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of comprehensive income for the reporting period ended 30 June 31 December 2026 2025 Change 2025 Note Rm Rm % Rm Net interest income 2 37 365 36 307 3 73 941 Interest and similar income 79 594 81 007 (2) 161 086 Effective interest income 78 635 79 630 (1) 158 482 Other interest income 959 1 377 (30) 2 604 Interest expense and similar charges (42 229) (44 700) (6) (87 145) Non-interest income 3 21 426 20 180 6 41 756 Net fee and commission income 3.1 13 588 13 189 3 26 752 Fee and commission income 15 967 15 229 5 31 230 Fee and commission expense (2 379) (2 040) 17 (4 478) Insurance service result 1 220 956 28 2 071 Insurance revenue 3.2 5 667 6 063 (7) 11 678 Insurance service expenses 3.2 (4 206) (4 673) (10) (9 019) Net expense from reinsurance contracts 3.2 (241) (434) (44) (588) Net finance expense from insurance contracts 3.2 (105) (173) (39) (347) Net finance expense from reinsurance contracts 3.2 (29) (3) >100 (36) Changes in investment contract liabilities 3.2 (726) (788) (8) (2 058) Gains and losses from banking and trading activities 3.3 5 731 5 221 10 10 853 Gains and losses from investment activities 3.4 1 308 1 565 (16) 3 635 Other operating income 3.5 439 213 >100 886 Total income 58 791 56 487 4 115 697 Credit impairment charges 4 (7 099) (7 173) (1) (13 410) Operating income before operating expenses 51 692 49 314 5 102 287 Operating expenses 5 (31 393) (30 044) 4 (62 235) Other expenses (1 595) (1 961) (19) (5 686) Other impairments (355) (769) (54) (3 157) Indirect taxation 6 (1 240) (1 192) 4 (2 529) Share of post-tax results of associates and joint ventures 137 164 (16) 318 Operating profit before income tax 18 841 17 473 8 34 684 Taxation expense 7 (4 841) (4 530) 7 (9 082) Profit for the reporting period 14 000 12 943 8 25 602 Profit attributable to: Ordinary equity holders 12 579 11 231 12 22 214 Non-controlling interest – ordinary shares 932 981 (5) 1 995 Non-controlling interest – preference shares – 195 (100) 342 Other equity: Additional Tier 1 capital 489 536 (9) 1 051 14 000 12 943 8 25 602 Earnings per share: Basic earnings per ordinary share (cents) 1 1 517.9 1 354.1 12 2 679.6 Diluted earnings per ordinary share (cents) 1 1 490.0 1 345.8 11 2 651.5
Page 20
18 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of comprehensive income for the reporting period ended 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Profit for the reporting period 14 000 12 943 8 25 602 Other comprehensive income Items that will not be reclassified to profit or loss (229) (174) 32 13 Movement on equity instruments designated at fair value through other comprehensive income (FVOCI) (5) 21 <(100) (3) Fair value movements (6) 27 <(100) 12 Deferred tax 1 (6) <(100) (15) Movement on liabilities designated at FVTPL due to changes in own credit risk (177) (139) 27 (144) Fair value movements (243) (190) 28 (197) Deferred tax 66 51 29 53 Movement in retirement benefit fund assets and liabilities (47) (56) (16) 160 Increase/(Decrease) in retirement benefit surplus (43) (36) 19 115 (Increase)/Decrease in retirement benefit deficit (7) (29) (76) 95 Deferred tax 3 9 (67) (50) Items that are or may be subsequently reclassified to profit or loss (3 476) 1 263 <(100) 1 401 Movement in foreign currency translation reserve (1 102) 9 <(100) (3 005) Differences in translation of foreign operations (1 102) 9 <(100) (3 046) Release to profit or loss – – – 41 Movement in cash flow hedging reserve (2 550) 898 <(100) 2 388 Fair value movements (3 233) 965 <(100) 3 020 Amounts transferred within other comprehensive income 140 (80) <(100) (122) Release to profit or loss (400) 346 <(100) 373 Deferred tax 943 (333) <(100) (883) Movement in fair value of debt instruments measured at FVOCI 237 258 (8) 1 875 Fair value movements 564 229 >100 2 292 Release to profit or loss (223) 15 <(100) 12 Deferred tax (104) 14 <(100) (429) Movement in Insurance finance reserve (61) 98 <(100) 143 Finance (expense)/income from insurance contracts (92) 230 <(100) 337 Finance expense from reinsurance contracts (3) (22) (86) (43) Deferred tax (2) (15) (87) (45) Current tax 36 (95) <(100) (130) Release to profit or loss – – – 24 Total comprehensive income for the reporting period 10 295 14 032 (27) 27 016 Total comprehensive income attributable to: Ordinary equity holders 9 101 12 854 (29) 24 585 Non-controlling interest – ordinary shares 705 447 58 1 038 Non-controlling interest – preference shares – 195 (100) 342 Other equity: Additional Tier 1 capital 489 536 (9) 1 051 10 295 14 032 (27) 27 016
Page 21
19 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of financial position as at Restated 30 June 31 December 2026 2025 Change 2025 Note Rm Rm % Rm Assets Cash, cash balances and balances with central banks 144 622 102 857 41 141 415 Investment securities 257 997 268 592 (4) 268 530 Trading portfolio assets 273 957 251 412 9 287 136 Hedging portfolio assets 816 2 720 (70) 709 Other assets 34 639 48 881 (29) 29 778 Current tax assets 1 105 1 646 (33) 577 Non-current assets held for sale 4 052 3 684 10 3 753 Loans and advances 8 1 493 470 1 412 147 6 1 438 559 Insurance contract assets 1 322 1 016 30 1 229 Reinsurance contract assets 475 485 (2) 525 Investments linked to investment contracts 29 098 24 964 17 27 218 Investments in associates and joint ventures 3 004 3 092 (3) 2 929 Investment property 314 315 (0) 314 Property and equipment 16 875 15 786 7 16 055 Goodwill and intangible assets 14 243 15 982 (11) 14 455 Deferred tax assets 6 397 6 180 4 6 297 Total assets 2 282 386 2 159 759 6 2 239 479 Liabilities Trading portfolio liabilities 59 077 68 029 (13) 84 533 Hedging portfolio liabilities 1 673 1 253 34 3 196 Other liabilities 51 867 71 777 (28) 38 751 Provisions 4 404 4 657 (5) 6 818 Current tax liabilities 1 321 670 97 1 946 Non-current liabilities held for sale 3 660 3 275 12 3 370 Deposits and debt funding 9 1 908 464 1 774 696 8 1 854 348 Liabilities under investment contracts 29 570 25 219 17 27 744 Insurance contract liabilities 4 514 4 071 11 4 324 Reinsurance contract liabilities 188 150 25 249 Capital-qualifying financial liabilities 10 21 597 18 006 20 22 562 Deferred tax liabilities 207 263 (21) 229 Total liabilities 2 086 542 1 972 066 6 2 048 070 Equity Capital and reserves Attributable to ordinary equity holders: Share capital 10 1 655 1 658 (0) 1 657 Share premium 10 10 086 10 492 (4) 10 437 Retained earnings 153 495 144 281 6 148 758 Other reserves 8 402 9 851 (15) 11 559 173 638 166 282 4 172 411 Non-controlling interest – ordinary shares 8 775 8 471 4 8 900 Non-controlling interest – preference shares – 4 642 (100) – Other equity: Additional Tier 1 capital 13 431 8 298 62 10 098 Total equity 195 844 187 693 4 191 409 Total liabilities and equity 2 282 386 2 159 759 6 2 239 479 The statement of financial position has been restated, refer to the reporting changes overview in note 13 for further details.
Page 22
20 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of changes in equity for the reporting period ended 30 June 2026 Number of ordinary shares Share capital Share premium Retained earnings Total other reserves General credit risk reserve ’000 Rm Rm Rm Rm Rm Balance at the beginning of the reporting period 828 779 1 657 10 437 148 758 11 559 1 643 Total comprehensive income – – – 12 350 (3 249) – Profit for the period – – – 12 579 – – Other comprehensive income – – – (229) (3 249) – Dividends paid during the reporting period – – – (7 068) – – Distributions paid during the reporting period – – – – – – Issuance of Additional Tier 1 capital – – – – – – Additional contribution (to)/from NCI – – – – (6) – Purchase of Group shares in respect of equity-settled share-based payment arrangements – – (977) (305) – – Elimination of the movement in treasury shares held by Group entities (684) (2) (351) – – – Movement in share-based payment reserve – – 977 – (142) – Transfer from share-based payment reserve – – 977 – (977) – Value of employee services – – – – 884 – Deferred tax – – – – (49) – Movement in general credit risk reserve – – – (103) 103 103 Share of post-tax results of associates and joint ventures – – – (137) 137 – Balance at the end of the reporting period 828 095 1 655 10 086 153 495 8 402 1 746 A disproportionate equity contribution was made by the Group to a non-wholly owned foreign insurance subsidiary, resulting in a R6m transfer within equity from “Foreign insurance subsidiary regulatory reserve” to “Non-controlling interest – ordinary shares”. 30 June 2026 Fair value through other compre- hensive income reserve Cash flow hedging reserve Foreign currency translation reserve Foreign insurance subsidiary regulatory reserve Insurance finance reserve Share- based payment reserve Associates and joint ventures reserve Capital and reserves attribu- table to ordinary equity holders Non- controlling interest - ordinary shares Other equity: Additional Tier 1 Capital Total equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm 2 117 2 904 (662) 28 262 2 716 2 551 172 411 8 900 10 098 191 409 213 (2 550) (858) – (54) – – 9 101 705 489 10 295 – – – – – – – 12 579 932 489 14 000 213 (2 550) (858) – (54) – – (3 478) (227) – (3 705) – – – – – – – (7 068) (843) – (7 911) – – – – – – – – – (489) (489) – – – – – – – – – 3 333 3 333 – – – (6) – – – (6) 13 – 7 – – – – – – – (1 282) – – (1 282) – – – – – – – (353) – – (353) – – – – – (142) – 835 – – 835 – – – – – (977) – – – – – – – – – – 884 – 884 – – 884 – – – – – (49) – (49) – – (49) – – – – – – – – – – – – – – – – – 137 – – – – 2 330 354 (1 520) 22 208 2 574 2 688 173 638 8 775 13 431 195 844
Page 23
21 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of changes in equity for the reporting period ended 30 June 2026 Fair value through other compre- hensive income reserve Cash flow hedging reserve Foreign currency translation reserve Foreign insurance subsidiary regulatory reserve Insurance finance reserve Share- based payment reserve Associates and joint ventures reserve Capital and reserves attribu- table to ordinary equity holders Non- controlling interest - ordinary shares Other equity: Additional Tier 1 Capital Total equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm 2 117 2 904 (662) 28 262 2 716 2 551 172 411 8 900 10 098 191 409 213 (2 550) (858) – (54) – – 9 101 705 489 10 295 – – – – – – – 12 579 932 489 14 000 213 (2 550) (858) – (54) – – (3 478) (227) – (3 705) – – – – – – – (7 068) (843) – (7 911) – – – – – – – – – (489) (489) – – – – – – – – – 3 333 3 333 – – – (6) – – – (6) 13 – 7 – – – – – – – (1 282) – – (1 282) – – – – – – – (353) – – (353) – – – – – (142) – 835 – – 835 – – – – – (977) – – – – – – – – – – 884 – 884 – – 884 – – – – – (49) – (49) – – (49) – – – – – – – – – – – – – – – – – 137 – – – – 2 330 354 (1 520) 22 208 2 574 2 688 173 638 8 775 13 431 195 844
Page 24
22 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of changes in equity for the reporting period ended 30 June 2025 Number of ordinary shares Share capital Share premium Retained earnings Total other reserves General credit risk reserve ’000 Rm Rm Rm Rm Rm Balance at the beginning of the reporting period 829 457 1 658 10 562 139 199 8 755 1 538 Total comprehensive income – – – 11 057 1 797 – Profit for the period – – – 11 231 – – Other comprehensive income – – – (174) 1 797 – Dividends paid during the reporting period – – – (6 444) – – Distributions paid during the reporting period – – – – – – Transaction cost incurred in anticipation of redemption of preference shares – – – – – – Redemption of Additional Tier 1 capital – – – – – – Purchase of Group shares in respect of equity-settled share-based payment arrangements – – (776) (49) – – Elimination of the movement in treasury shares held by Group entities (155) – (70) – – – Movement in share-based payment reserve – – 776 – (183) – Transfer from share-based payment reserve – – 776 – (776) – Value of employee services – – – – 609 – Deferred tax – – – – (16) – Movement in general credit risk reserve – – – 25 (25) (25) Share of post-tax results of associates and joint ventures – – – (164) 164 – Transfers between reserves – – – 657 (657) – Balance at the end of the reporting period 829 302 1 658 10 492 144 281 9 851 1 513 30 June 2025 Fair value through other compre- hensive income reserve Cash flow hedging reserve Foreign currency translation reserve Foreign insurance subsidiary regulatory reserve Insurance finance reserve Share- based payment reserve Associates and joint ventures reserve Capital and reserves attribu- table to ordinary equity holders Non- controlling interest - ordinary shares Non- controlling interest - preference shares Other equity: Additional Tier 1 Capital Total equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm 874 516 1 496 44 64 2 002 2 221 160 174 8 784 4 644 9 674 183 276 190 898 568 – 141 – – 12 854 447 195 536 14 032 – – – – – – – 11 231 981 195 536 12 943 190 898 568 – 141 – – 1 623 (534) – – 1 089 – – – – – – – (6 444) (760) (195) – (7 399) – – – – – – – – – – (536) (536) – – – – – – – – – (2) – (2) – – – – – – – – – – (1 376) (1 376) – – – – – – (825) – – – (825) – – – – – – – (70) – – – (70) – – – – – (183) – 593 – 593 – – – – – (776) – – – – – – – – – – – 609 – 609 – – – 609 – – – – (16) – (16) – – – (16) – – – – – – – – – – – – – – – – – – 164 – – – – – (615) – – – – (42) – – – – – – 449 1 414 2 064 44 205 1 777 2 385 166 282 8 471 4 642 8 298 187 693
Page 25
23 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of changes in equity for the reporting period ended 30 June 2025 Number of ordinary shares Share capital Share premium Retained earnings Total other reserves General credit risk reserve ’000 Rm Rm Rm Rm Rm Balance at the beginning of the reporting period 829 457 1 658 10 562 139 199 8 755 1 538 Total comprehensive income – – – 11 057 1 797 – Profit for the period – – – 11 231 – – Other comprehensive income – – – (174) 1 797 – Dividends paid during the reporting period – – – (6 444) – – Distributions paid during the reporting period – – – – – – Transaction cost incurred in anticipation of redemption of preference shares – – – – – – Redemption of Additional Tier 1 capital – – – – – – Purchase of Group shares in respect of equity-settled share-based payment arrangements – – (776) (49) – – Elimination of the movement in treasury shares held by Group entities (155) – (70) – – – Movement in share-based payment reserve – – 776 – (183) – Transfer from share-based payment reserve – – 776 – (776) – Value of employee services – – – – 609 – Deferred tax – – – – (16) – Movement in general credit risk reserve – – – 25 (25) (25) Share of post-tax results of associates and joint ventures – – – (164) 164 – Transfers between reserves – – – 657 (657) – Balance at the end of the reporting period 829 302 1 658 10 492 144 281 9 851 1 513 30 June 2025 Fair value through other compre- hensive income reserve Cash flow hedging reserve Foreign currency translation reserve Foreign insurance subsidiary regulatory reserve Insurance finance reserve Share- based payment reserve Associates and joint ventures reserve Capital and reserves attribu- table to ordinary equity holders Non- controlling interest - ordinary shares Non- controlling interest - preference shares Other equity: Additional Tier 1 Capital Total equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm 874 516 1 496 44 64 2 002 2 221 160 174 8 784 4 644 9 674 183 276 190 898 568 – 141 – – 12 854 447 195 536 14 032 – – – – – – – 11 231 981 195 536 12 943 190 898 568 – 141 – – 1 623 (534) – – 1 089 – – – – – – – (6 444) (760) (195) – (7 399) – – – – – – – – – – (536) (536) – – – – – – – – – (2) – (2) – – – – – – – – – – (1 376) (1 376) – – – – – – (825) – – – (825) – – – – – – – (70) – – – (70) – – – – – (183) – 593 – 593 – – – – – (776) – – – – – – – – – – – 609 – 609 – – – 609 – – – – (16) – (16) – – – (16) – – – – – – – – – – – – – – – – – – 164 – – – – – (615) – – – – (42) – – – – – – 449 1 414 2 064 44 205 1 777 2 385 166 282 8 471 4 642 8 298 187 693
Page 26
24 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of changes in equity for the reporting period ended 31 December 2025 Number of ordinary shares Share capital Share premium Retained earnings Total other reserves General credit risk reserve ’000 Rm Rm Rm Rm Rm Balance at the beginning of the reporting period 829 458 1 658 10 562 139 199 8 755 1 538 Total comprehensive income – – – 22 227 2 358 – Profit for the period – – – 22 214 – – Other comprehensive income – – – 13 2 358 – Dividends paid during the reporting period – – – (12 957) – – Distributions paid during the reporting period – – – – – – Redemption of preference shares – – – 31 – – Issuance of Additional Tier 1 capital – – – – – – Redemption of Additional Tier 1 capital – – – – – – Purchase of Group shares in respect of equity-settled share-based payment arrangements – – (809) (52) – – Elimination of the movement in treasury shares held by Group entities (679) (1) (125) – – – Movement in share-based payment reserve – – 809 – 756 – Transfer from share-based payment reserve – – 809 – (809) – Value of employee services – – – – 1 422 – Deferred tax – – – – 143 – Movement in general credit risk reserve – – – (105) 105 105 Share of post-tax results of associates and joint ventures – – – (330) 330 – Transfers between reserves – – – 745 (745) – Balance at the end of the reporting period 828 779 1 657 10 437 148 758 11 559 1 643
Page 27
25 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of changes in equity for the reporting period ended 31 December 2025 Fair value through other compre- hensive income reserve Cash flow hedging reserve Foreign currency translation reserve Foreign insurance subsidiary regulatory reserve Insurance finance reserve Share- based payment reserve Associates and joint ventures reserve Capital and reserves attribu- table to ordinary equity holders Non- controlling interest - ordinary shares Non- controlling interest - preference shares Other equity: Additional Tier 1 Capital Total equity Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm Rm 874 516 1 496 44 64 2 002 2 221 160 174 8 784 4 644 9 674 183 276 1 801 2 388 (2 029) – 198 – – 24 585 1 038 342 1 051 27 016 – – – – – – – 22 214 1 995 342 1 051 25 602 1 801 2 388 (2 029) – 198 – – 2 371 (957) – – 1 414 – – – – – – – (12 957) (922) (342) – (14 221) – – – – – – – – – – (1 051) (1 051) – – – – – – – 31 – (4 644) – (4 613) – – – – – – – – – – 3 009 3 009 – – – – – – – – – – (2 585) (2 585) – – – – – – – (861) – – – (861) – – – – – – – (126) – – – (126) – – – – – 756 – 1 565 – – – 1 565 – – – – – (809) – – – – – – – – – – – 1 422 – 1 422 – – – 1 422 – – – – – 143 – 143 – – – 143 – – – – – – – – – – – – – – – – – – 330 – – – – – (558) – (129) (16) – (42) – – – – – – 2 117 2 904 (662) 28 262 2 716 2 551 172 411 8 900 – 10 098 191 409
Page 28
26 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Consolidated statement of cash flows for the reporting period ended 30 June 31 December 2026 2025 2025 Note Rm Rm Rm Cash flow from operating activities Profit before tax 18 841 17 473 34 684 Adjustment of non-cash items Depreciation and amortisation 5 2 949 3 012 6 039 Other impairments 355 769 3 157 Share of post-tax results of associates and joint ventures (137) (164) (318) Other non-cash items included in profit before tax 846 799 1 624 Adjustment of dividends received from investing activities (77) (65) (141) Cash flow from operating activities before changes in operating assets and liabilities 22 777 21 824 45 045 Net increase in operating assets (67 048) (133 990) (208 683) Net increase in operating liabilities 46 162 117 231 220 954 Income taxes paid (6 245) (4 706) (7 230) Net cash generated (utilised in) operating activities (4 354) 359 50 086 Cash flow from investing activities Proceeds from sale of non-current assets held for sale 125 1 851 1 859 Dividends received from investment activities 144 156 625 Purchase of property and equipment (2 440) (1 243) (3 318) Purchase of investment properties – (93) (90) Proceeds from disposal of properties and equipment 456 251 674 Purchase of intangible assets (1 382) (1 559) (3 916) Proceeds from disposal of business – 237 – Proceeds from disposal of intangible assets 27 20 174 Net cash (utilised in) investing activities (3 070) (380) (3 992) Cash flow from financing activities Purchase of own shares (352) (70) (126) Purchase of Group shares in respect of equity settled share-based payment schemes (1 282) (901) (861) Transaction costs in anticipation of preference shares redemption (2) – Redemption of preference shares – – (4 598) Issue of Additional Tier 1 capital 3 333 – 3 009 Issuance of Flac instruments 7 991 – – Redemption of Additional Tier 1 capital – (1 376) (2 585) Proceeds from capital-qualifying financial liabilities 10 7 406 – 5 045 Repayment of capital-qualifying financial liabilities 10 (6 866) (2 761) (2 761) Repayment of lease liabilities (646) (649) (1 427) Distributions paid to Tier 1 Capital holders (489) (536) (1 051) Dividends paid (7 911) (7 399) (14 221) Net cash generated (utilised in) financing activities 1 184 (13 694) (19 576) Net increase in cash and cash equivalents (6 240) (13 715) 26 518 Cash and cash equivalents at the beginning of the reporting period 164 010 137 797 137 797 Effect of exchange rate movement on cash and cash equivalents (178) (72) (305) Cash and cash equivalents at the end of the reporting period 157 592 124 010 164 010 Borrowed funds, which was renamed Subordinated debt in December 2025, has subsequently been renamed Capital-qualifying financial liabilities. As part of operating activities, interest income amounting to R76 539m (30 June 2025: R77 524m; 31 December 2025: R155 665m); and interest expense amounting to R41 973m (30 June 2025: R43 272m; 31 December 2025: R85 015m) were received and paid in cash respectively.
Page 29
27 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Notes to the consolidated statement of cash flows 1. N et increase in operating assets 30 June 31 December 2026 2025 2025 Rm Rm Rm Trading and hedging portfolio assets 10 072 (22 566) (55 462) Loans and advances (20 745) (72 623) (100 738) Other assets (59 439) (39 811) (47 065) Investment securities 5 118 2 590 (1 563) Insurance and reinsurance contract assets (167) 14 (11) Investments linked to investment contracts (1 887) (1 594) (3 844) (67 048) (133 990) (208 683) 2. N et increase in operating liabilities 30 June 31 December 2026 2025 2025 Rm Rm Rm Trading and hedging portfolio liabilities (27 147) 1 859 20 333 Liabilities under investment contracts 1 834 1 671 4 192 Insurance and reinsurance contract liabilities 456 318 890 Other liabilities 15 602 13 932 56 102 Deposits and debt funding 55 417 99 451 139 437 46 162 117 231 220 954 The change in presentation relating to deposits and debt funding detailed in Note 13 has resulted in the reclassification of amounts from other liabilities to deposits and debt funding for June 2025. The deposits and debt funding line item excludes cash flows associated with Flac instruments, which are presented separately in the statement of cash flows. 3. Cash and cash equiv alents 30 June 31 December 2026 2025 2025 Rm Rm Rm Mandatory reserve and other balances with the SARB and other central banks 110 324 70 547 106 892 Coins and bank notes 11 691 10 804 12 050 Loans and advances to banks 27 250 29 240 32 075 Money market assets 2 057 3 327 2 171 Mobile money balances 2 418 2 036 3 566 Investment securities 3 852 8 056 7 256 157 592 124 010 164 010
Page 30
28 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 1. H eadline earnings and earnings per ordinary share Headline earnings (Rm and change %) Jun 2023 Jun 2025 Dec 2023 11 874 22 059 Dec 2024 Jun 2024 Dec 2022 20 074 10 715 19 974 10 180 Dec 2025 24 762 Jun 2026 12 807 8% YoY % change (Jun 2026 vs Jun 2025) 30 June 31 December 2026 2025 2025 Gross Net Gross Net Gross Net Rm Rm Rm Rm Rm Rm Headline earnings is determined as follows: Profit attributable to ordinary equity holders of the Group 12 579 11 231 22 214 Total headline earnings adjustment: 228 643 2 548 IFRS 5 – Profit on disposal of non-current assets held for sale (28) (23) (5) (4) (30) (29) IFRS 5 – Loss on disposal of non-current assets held for sale – – 60 60 61 61 IFRS 5 – Re-measurement of non-current assets held for sale – – 9 9 9 9 IAS 16 – Profit on disposal of property and equipment (10) (8) – – (12) (12) IAS 16 – Loss on disposal of property and equipment – – 2 1 5 4 IAS 28 – Dilution loss on change in shareholding of associate – – – – 13 13 IAS 36 – Impairment of property and equipment 155 113 556 391 626 442 IAS 36 – Impairment of other non-financial assets 94 94 94 94 IAS 36 – Impairment of intangible assets 200 146 74 55 2 395 1 884 IAS 36 – Impairment of goodwill – – 36 36 36 36 IAS 38 – Loss on disposal of intangible assets – – 1 1 7 5 IAS 21- Recycle of FCTR Reserve to P&L – – – – 41 41 Headline earnings/diluted headline earnings 12 807 11 874 24 762 The net headline earnings amounts reflected above are after the effects of taxation and non-controlling interest.
Page 31
29 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Basic earnings per ordinary share Basic earnings attributable to ordinary equity holders (Rm) 12 579 11 231 12 22 214 Weighted average number of ordinary shares in issue (million) 828.7 829.4 (0) 829.0 Issued shares at the beginning of the reporting period (million) 894.4 894.4 – 894.4 Treasury shares held by group entities (million) (65.7) (65.0) 1.1 (65.4) Basic earnings per ordinary share (cents) 1 517.9 1 354.1 12 2 679.6 Diluted basic earnings per ordinary share Diluted basic earnings attributable to ordinary equity holders (Rm) 12 579 11 231 12 22 214 Diluted weighted average number of ordinary shares in issue (million) 844.2 834.5 1.2 837.8 Weighted average number of ordinary shares in issue (million) 828.7 829.4 (0) 829.0 Adjustments for share options issued at no value (million) 15.5 5.1 >100 8.8 Diluted basic earnings per ordinary share (cents) 1 490.0 1 345.8 11 2 651.5 Headline earnings per ordinary share Headline earnings attribute to ordinary equity holders (Rm) 12 807 11 874 8 24 762 Weighted average number of ordinary shares in issue (million) 828.7 829.4 (0) 829.0 Headline earnings per ordinary share (cents) 1 545.4 1 431.6 8 2 987.0 Diluted headline earnings per ordinary share Headline earnings attribute to ordinary equity holders (Rm) 12 807 11 874 8 24 762 Diluted weighted average number of ordinary shares in issue (million) 844.2 834.5 1 837.8 Diluted headline earnings per ordinary share (cents) 1 517.1 1 422.9 7 2 955.5
Page 32
30 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 2. N et interest income Net interest income and net interest margin Jun 2024 35 310 Dec 2023 68 055 Jun 2023 33 069 Dec 2022 60 440 Dec 2024 71 105 Jun 2025 36 307 73 941 Dec 2025 Jun 2026 37 365 Net interest margin on average interest – bearing assets (%) — Net interest margin – after impairments losses on loans and advances (%) Net interest income (Rm) 4.58 3.67 4.53 3.71 4.46 3.623.55 4.56 3.61 4.68 3.58 4.69 3.70 4.63 3.46 4.62 30 June 31 December 2026 2025 2025 Average balance Average rate Interest income/ (expense) Average Balance Average rate Interest income/ (expense) Average balance Average rate Interest income/ (expense) Rm % Rm Rm % Rm Rm % Rm Assets Cash, cash balances and balances with central banks 32 953 0.06 10 23 176 0.04 5 27 319 0.03 9 Investment securities 251 211 7.56 9 422 245 233 8.87 10 792 251 079 8.27 20 771 Loans and advances to banks and customers 1 403 723 10.08 70 162 1 330 304 10.64 70 210 1 353 112 10.37 140 306 Interest-bearing assets 1 687 887 9.51 79 594 1 598 713 10.22 81 007 1 631 510 9.87 161 086 Non-interest-bearing assets 611 489 – 507 552 – 556 955 – Total assets 2 299 376 – 79 594 2 106 265 – 81 007 2 188 465 – 161 086 Liabilities Deposits and debt funding 1 436 622 (5.78) (41 170) 1 374 115 (6.45) (43 980) 1 399 630 (6.11) (85 513) Capital-qualifying financial liabilities 26 064 (8.19) (1 059) 21 581 (6.73) (720) 21 095 (7.74) (1 632) Interest-bearing liabilities 1 462 686 (5.82) (42 229) 1 395 696 (6.46) (44 700) 1 420 725 (6.13) (87 145) Non-interest-bearing liabilities 732 414 – 519 906 – 568 818 – Total liabilities 2 195 100 – (42 229) 1 915 602 (44 700) 1 989 543 – (87 145) Net interest margin on average interest-bearing assets 4.46 4.58 4.53 Average balances are calculated based on daily weighted average balances. Borrowed funds, which was renamed Subordinated debt in December 2025, has subsequently been renamed Capital-qualifying financial liabilities.
Page 33
31 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 2. N et interest income Performance The Group’s net interest margin (NIM) decreased by 12bps to 446bps (30 June 2025: 458bps), reflecting margin compression in Africa Regions, where NIM declined to 735bps (30 June 2025: 782bps). In contrast, South Africa delivered a marginal improvement of 1bp, with NIM increasing to 378bps (30 June 2025: 377bps). The overall outcome was primarily driven by deposit margin compression following lower policy rates, partially offset by favourable pricing effects on customer advances. Net interest income increased by 3% to R37.4bn (30 June 2025: R36.0bn) from 6% growth in average interest-bearing assets to R1 688bn (30 June 2025: R1 599bn). The key drivers of the year-on-year movement are: 30 June 31 December 2026 2025 2025 bps bps bps Net interest margin at the end of the previous reporting period 458 469 463 Loans and advances to customers (i) 6 (6) (1) Change in rates (pricing) 9 (5) (3) Change in composition (3) (1) 2 Deposits due to customers (ii) (8) (11) (10) Change in rates (pricing) (8) (15) (12) Change in composition – 4 2 Liability endowment (iii) (11) (4) (8) SA (2) (6) (6) AR (9) 2 (2) Equity endowment (iv) (6) 3 1 SA (2) (3) (3) AR (4) 6 4 Interest rate risk management (hedging strategy) (v) 8 8 9 Other (vi) (1) (1) (1) Change in net interest margin (12) (11) (10) Net interest margin at the end of the current reporting period 446 458 453 Liability endowment has been restated to include the Africa Regions liability endowment, which was previously reported under 'Other'.
Page 34
32 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 2. N et interest income Performance continued (i) L oans and advances to customers • P ositive pricing impact mainly reflects the benefits of lower wholesale funding costs and pricing actions in PPB SA’s Unsecured Lending portfolio. Partially offset by competitive pricing pressure within CIB SA. • Negativ e composition reflects an adverse impact from faster growth in Investment Banking SA, contraction in Personal Loans, partially offset by slower growth in the Home Loans portfolio. (ii) Deposits due t o customers • Negativ e pricing mainly reflects margin compression in CIB SA due to competitive pricing pressures. In Africa Regions, margin compression was driven by the lower interest rate environment across key markets. • No mat erial composition change from deposits as the impact of increased reliance on wholesale funding in SA was offset by faster growth in higher margin deposits in PPB SA and lower reliance on wholesale funding in AR. (iii) Liability endowment • Liability endowment in SA had a 2bps negative impact driven by lower average prime interest rates, partly offset by an increase in average endowment balances. • Liability endowment in AR had a 9bps negative impact driven by lower interest rates across key geographies. (iv) E quity endowment • E ndowment on equity in SA was slightly negative 2bps due to lower average prime interest rates (-3bps) (H1’25: 11.00%, H1’26: 10.30%), partially offset by the increase in average equity balances (1bps). • E quity endowment in AR was a 4bps drag driven by lower rates (mainly in Ghana and Kenya) coupled with lower regulatory capital. (v) H edging strategy and equity endowment Hedging impact on ne t interest margin1 (%) • Absa Bank Limited employs a governed interest rate strategy (hedging programme) through the interest rate cycle to reduce margin volatility associated with structural balances (i.e. rate insensitive liabilities as well as the endowment associated with equity). • Qualification crit erion for balances to be treated as structural is well defined and tested. Structural balances represent 11% (H1’25: 11%) of Absa Bank Limited’s total capital and liabilities. • Cash flow hedg e accounting is applied to account for the interest rate swaps executed as part of the hedging programme in South Africa. The after-tax ‘cash flow hedging reserve’ relating to the hedging programme reflected a credit balance of R0.6bn (30 June 2025: R1.2bn credit). The structural hedge released a benefit of R348m to the income statement, compared to R280m charge in H1’25, resulting in a +8bps impact year-on-year. • T he average structural rates earned on the programme were up c.28bps (H1’26: 7.53%; H1’25: 7.25%). • T he impact of total endowment after hedging in South Africa year-on-year was positive due to the higher structural rate earned on the programme. (vi) Other • Other items had a cumulative -1bp impact. 1 Absa Bank Limited hedging strategy: • T he hedging programme provides greater margin stability from an interest rate risk perspective over the entire cycle. • In a decr easing rate scenario, the hedging programme enhances the net interest margin while the opposite is true for an increasing rate scenario. • Basis risk still remains between prime linked assets and the three-month Johannesburg Interbank Agreed Rate (JIBAR) linked liabilities.
Page 35
33 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 3. N on-interest income 3.1. N et fee and commission income 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Consulting and administration fees 272 282 (4) 567 Insurance commission received 499 516 (3) 930 Investment, markets execution and investment banking fees 296 172 72 426 Merchant income 1 559 1 495 4 3 128 Other fee and commission income 315 334 (6) 622 Transactional fees and commissions 12 602 12 049 5 24 756 Cheque accounts 3 401 2 907 17 6 041 Credit cards (includes card issuing fees) 1 883 1 766 7 3 599 Electronic banking 3 162 3 237 (2) 6 478 Service charges 2 870 2 785 3 5 994 Other (includes exchange commissions and guarantees) 742 763 (3) 1 507 Savings accounts 544 591 (8) 1 137 Trust and other fiduciary services fees 424 381 11 801 Fee and commission income 15 967 15 229 5 31 230 Fee and commission expense (2 379) (2 040) 17 (4 478) 13 588 13 189 3 26 752 Segment split Personal and Private Banking 8 714 8 497 3 17 325 Business Banking 2 715 2 519 8 5 074 Corporate and Investment Banking 2 314 2 245 3 4 661 Head Office, Treasury and other operations (155) (72) >100 (308) 13 588 13 189 3 26 752 Transactional fees and commissions – Other includes exchange commission of R427m (30 June 2025: R433m; 31 December 2025: R901m) and guarantee fees received of R315m (30 June 2025: R330m; 31 December 2025: R606m). The majority of these items are accounted for as revenue recognised at a point in time in accordance with the requirements of IFRS 15. The segment split numbers have been restated. Refer to the reporting changes overview in note 13. In 2025, the Group misclassified certain transactional fees and commissions relating to cheque accounts as merchant income. As a result, merchant income has been restated from R1 788m for June 2025 and R3 796m for 31 December 2025, cheque account income has been restated from R2 614m for June 2025 and R5 373m for 31 December 2025 to the values disclosed in the table above.
Page 36
34 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 3. N on-interest income 3.3. Gains and losses fr om banking and trading activities 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Net gains on investments 317 61 >100 324 Debt instruments designated at fair value through profit or loss 87 57 53 126 Equity instruments at fair value through profit or loss 8 19 (58) 210 Unwind from reserves for debt instruments at fair value through other comprehensive income 222 (15) <(100) (12) Net trading result 5 533 5 296 4 10 531 Net trading income excluding the impact of hedge accounting 5 335 5 108 4 10 481 Ineffective portion of hedges 198 188 5 50 Cash flow hedges 194 182 7 88 Fair value hedges 4 6 (33) (38) Other losses (119) (136) (13) (2) 5 731 5 221 10 10 853 Segment split Personal and Private Banking 265 274 (3) 585 Business Banking 220 210 5 428 Corporate and Investment Banking 4 928 4 513 9 9 740 Head Office, Treasury and other operations 318 224 42 100 5 731 5 221 10 10 853 The segment split numbers have been restated. Refer to the reporting changes overview note 13. 3.2. N et insurance income 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Insurance revenue 5 667 6 063 (7) 11 678 Life insurance contracts 3 067 3 138 (2) 6 121 Contracts not measured under the Premium Allocation Approach 2 592 2 632 (2) 5 211 Contracts measured under the Premium Allocation Approach 475 506 (6) 910 Non-life insurance contracts 2 600 2 925 (11) 5 557 Insurance service expenses (4 206) (4 673) (10) (9 019) Net expense from reinsurance contracts (241) (434) (44) (588) Net finance expense from insurance contracts (105) (173) (39) (347) Net finance expense from reinsurance contracts (29) (3) >100 (36) Changes in investment contract liabilities (726) (788) (8) (2 058) Gains and losses from investment activities – insurance 1 296 1 548 (16) 3 605 Net insurance income 1 656 1 540 8 3 235 Net insurance income, as defined, excludes “Other” as disclosed in note 3.4 Gains and losses from investment activities.
Page 37
35 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 3. N on-interest income 3.4. Gains and losses fr om investment activities 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Net gains on investments from insurance activities 1 296 1 548 (16) 3 605 Insurance contracts 232 436 (47) 818 Investment contracts 807 870 (7) 2 228 Shareholder funds 257 242 6 559 Other 12 17 (29) 30 1 308 1 565 (16) 3 635 Segment split Personal and Private Banking 1 310 1 559 (16) 3 630 Head Office, Treasury and other operations (2) 6 <(100) 5 1 308 1 565 (16) 3 635 The segment split numbers have been restated. Refer to the reporting changes overview note 13. One of the main drivers to the movement of the Group’s ‘Liabilities under investment contracts’ is the underlying performance of the related assets. ‘Net gains on investments from insurance activities: Investment contracts’ should therefore be read in conjunction with ‘Changes in investment contract liabilities’ reported in the consolidated statement of comprehensive income.
Page 38
36 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 3. N on-interest income 3.5. Other operating income 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Property-related income 31 18 72 51 Income from investment properties – – – 3 Change in fair value – 0 – 3 Property-related income arising from contracts with customers 31 18 72 48 Profit/ (Loss) on disposal of property and equipment 10 (2) <(100) 6 Profit on sale of developed properties 17 10 70 – Loss on sale of repossessed properties (18) (12) 50 – Rental income 22 22 – 42 Other operating income 408 195 >100 835 Foreign exchange differences, including recycle from other comprehensive income (34) 108 <(100) (24) Derecognition gain on financial instruments measured at amortised cost 146 – 100 239 Income from maintenance contracts – 4 (100) 4 Loss on disposal of intangible assets – (1) (100) (7) Sundry income 296 84 >100 623 439 213 >100 886 Segment split Property-related income 31 18 72 51 Personal and Private Banking 28 14 100 32 Business Banking 2 – 100 1 Corporate and Investment Banking – – – 11 Head Office, Treasury and other operations 1 4 (75) 7 Other operating income 408 195 >100 835 Personal and Private Banking 166 15 >100 277 Business Banking 33 44 (25) 123 Corporate and Investment Banking 95 49 94 123 Head Office, Treasury and other operations 114 87 31 312 439 213 >100 886 Sundry income includes income from unallocated funds of R83m (30 June 2025: R20m; 31 December 2025: R221m), gains/(losses) on disposal of assets and liabilities held for sale under IFRS 5 of R28m (30 June 2025: (R55m); 31 December 2025: (R31m), vehicle rental income of R110m (30 June 2025: R43m; 31 December 2025: R133m) and VISA incentives of R40m (30 June 2025: Rnil; 31 December 2025: R120m). The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 39
37 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.1. T otal charge to the statement of comprehensive income by market segment Jun 2024 Dec 2023 Jun 2023 Dec 2022 Dec 2024 Jun 2025 Dec 2025 Jun 2026 46.89 1.00 45.75 0.88 45.49 0.941.180.96 44.97 46.13 1.23 1.03 47.37 1.27 45.88 Stage 3 coverage ratio (%) Credit loss ratio on loans and advances (%) 47.08 30 June 31 December 2026 2025 Change 2025 Charge to the statement of comprehensive income by market segment Rm Rm % Rm Personal and Private Banking Personal and Private Banking SA 5 354 5 307 1 9 443 Transactions and Deposits 269 227 19 413 Unsecured Lending 3 186 3 289 (3) 6 297 Personal Loans 1 074 1 024 5 2 112 Card 2 112 2 265 (7) 4 185 Home Loans 810 747 8 1 112 Vehicle and Asset Finance 1 089 1 044 4 1 621 Personal and Private Banking AR 644 781 (18) 1 242 Total charge 5 998 6 088 (1) 10 685 Credit loss ratio (%) 1.87 1.96 1.70 Business Banking Business Banking SA 495 508 (3) 817 Business Banking AR 79 37 >100 159 Total charge 574 545 5 976 Credit loss ratio (%) 0.63 0.64 0.56 Corporate and Investment Banking Corporate and Investment Banking SA 353 341 4 983 Corporate and Investment Banking AR 224 158 42 286 Total charge 577 499 16 1 269 Credit loss ratio (%) 0.17 0.17 0.21 Head Office, Treasury and other operations Total charge (50) 41 <(100) 480 Total charge to the statement of comprehensive income 7 099 7 173 (1) 13 410 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 40
38 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.1. T otal charge to the statement of comprehensive income by market segment continued 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Charge to the statement of comprehensive income by product type Comprising: Credit impairment charges raised 7 634 7 353 4 14 023 Loans and advances to customers and undrawn facilities 7 634 7 323 4 13 561 Loans and advances to banks (48) 13 <(100) 21 Other financial instruments subject to credit impairment (37) 34 <(100) 469 Guarantees and letters of credit 85 (17) <(100) (28) Recoveries of financial instruments subject to credit impairment previously written off (667) (370) 80 (933) Modifications 132 190 (31) 320 Total charge to the statement of comprehensive income 7 099 7 173 (1) 13 410 4.2 E CL analysis by market segment and class of credit exposure 30 June 2026 Carrying amount of financial assets measured at fair value through profit or loss Stage 1 Gross carrying amount ECL Allowance ECL Coverage Rm Rm Rm % Personal and Private Banking – 537 003 5 148 0.96 Personal and Private Banking SA – 472 225 4 138 0.88 Transactions and Deposits – 9 312 257 2.76 Unsecured Lending – 64 273 2 318 3.61 Personal Loans – 16 261 703 4.32 Card – 48 012 1 615 3.36 Home Loans – 280 092 637 0.23 Vehicle and Asset Finance – 118 548 926 0.78 Retail Other – – – – Personal and Private Banking AR – 64 778 1 010 1.56 Business Banking – 162 577 771 0.47 Business Banking SA – 141 389 587 0.42 Business Banking AR – 21 188 184 0.87 Corporate and Investment Banking 127 492 449 734 1 481 0.33 Corporate and Investment Banking SA 127 492 368 573 1 034 0.28 Corporate and Investment Banking AR – 81 161 447 0.55 Head Office, Treasury and other operations – 4 042 (137) – Loans and advances to customers – 4 042 – – Reclassification to provisions – – (137) – Loans and advances to customers 127 492 1 153 356 7 263 0.63 Loans and advances to banks 25 219 59 801 4 0.01 Total loans and advances 152 711 1 213 157 7 267 0.60 30 June 2026 Stage 2 Stage 3 Gross carrying amount ECL Allowance ECL Coverage Gross carrying amount ECL Allowance ECL Coverage Net carrying amount Rm Rm % Rm Rm % Rm 47 341 4 099 8.66 57 497 29 415 51.16 603 179 44 719 3 567 7.98 54 366 26 734 49.17 536 871 1 423 177 12.44 1 150 675 58.70 10 776 8 011 1 541 19.24 13 024 9 836 75.52 71 613 2 684 314 11.70 4 229 3 194 75.53 18 963 5 327 1 227 23.03 8 795 6 642 75.52 52 650 20 553 674 3.28 30 401 10 620 34.93 319 115 14 732 1 175 7.98 9 739 5 551 57.00 135 367 – – – 52 52 100.00 – 2 622 532 20.29 3 131 2 681 85.63 66 308 16 484 638 3.87 11 527 4 055 35.18 185 124 12 190 479 3.93 7 657 2 439 31.85 157 731 4 294 159 3.70 3 870 1 616 41.76 27 393 27 724 478 1.72 12 697 3 720 29.30 611 968 16 412 266 1.62 6 307 1 670 26.48 515 814 11 312 212 1.87 6 390 2 050 32.08 96 154 – (65) – – (13) – 4 257 – – – – – – 4 042 – (65) – – (13) – 215 91 549 5 150 5.63 81 721 37 177 45.49 1 404 528 3 931 5 0.13 – – – 88 942 95 480 5 155 5.40 81 721 37 177 45.49 1 493 470
Page 41
39 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.2. E CL analysis by market segment and class of credit exposure continued 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Charge to the statement of comprehensive income by product type Comprising: Credit impairment charges raised 7 634 7 353 4 14 023 Loans and advances to customers and undrawn facilities 7 634 7 323 4 13 561 Loans and advances to banks (48) 13 <(100) 21 Other financial instruments subject to credit impairment (37) 34 <(100) 469 Guarantees and letters of credit 85 (17) <(100) (28) Recoveries of financial instruments subject to credit impairment previously written off (667) (370) 80 (933) Modifications 132 190 (31) 320 Total charge to the statement of comprehensive income 7 099 7 173 (1) 13 410 4.2 ECL analysis by market segment and class of credit exposure 30 June 2026 Carrying amount of financial assets measured at fair value through profit or loss Stage 1 Gross carrying amount ECL Allowance ECL Coverage Rm Rm Rm % Personal and Private Banking – 537 003 5 148 0.96 Personal and Private Banking SA – 472 225 4 138 0.88 Transactions and Deposits – 9 312 257 2.76 Unsecured Lending – 64 273 2 318 3.61 Personal Loans – 16 261 703 4.32 Card – 48 012 1 615 3.36 Home Loans – 280 092 637 0.23 Vehicle and Asset Finance – 118 548 926 0.78 Retail Other – – – – Personal and Private Banking AR – 64 778 1 010 1.56 Business Banking – 162 577 771 0.47 Business Banking SA – 141 389 587 0.42 Business Banking AR – 21 188 184 0.87 Corporate and Investment Banking 127 492 449 734 1 481 0.33 Corporate and Investment Banking SA 127 492 368 573 1 034 0.28 Corporate and Investment Banking AR – 81 161 447 0.55 Head Office, Treasury and other operations – 4 042 (137) – Loans and advances to customers – 4 042 – – Reclassification to provisions – – (137) – Loans and advances to customers 127 492 1 153 356 7 263 0.63 Loans and advances to banks 25 219 59 801 4 0.01 Total loans and advances 152 711 1 213 157 7 267 0.60 30 June 2026 Stage 2 Stage 3 Gross carrying amount ECL Allowance ECL Coverage Gross carrying amount ECL Allowance ECL Coverage Net carrying amount Rm Rm % Rm Rm % Rm 47 341 4 099 8.66 57 497 29 415 51.16 603 179 44 719 3 567 7.98 54 366 26 734 49.17 536 871 1 423 177 12.44 1 150 675 58.70 10 776 8 011 1 541 19.24 13 024 9 836 75.52 71 613 2 684 314 11.70 4 229 3 194 75.53 18 963 5 327 1 227 23.03 8 795 6 642 75.52 52 650 20 553 674 3.28 30 401 10 620 34.93 319 115 14 732 1 175 7.98 9 739 5 551 57.00 135 367 – – – 52 52 100.00 – 2 622 532 20.29 3 131 2 681 85.63 66 308 16 484 638 3.87 11 527 4 055 35.18 185 124 12 190 479 3.93 7 657 2 439 31.85 157 731 4 294 159 3.70 3 870 1 616 41.76 27 393 27 724 478 1.72 12 697 3 720 29.30 611 968 16 412 266 1.62 6 307 1 670 26.48 515 814 11 312 212 1.87 6 390 2 050 32.08 96 154 – (65) – – (13) – 4 257 – – – – – – 4 042 – (65) – – (13) – 215 91 549 5 150 5.63 81 721 37 177 45.49 1 404 528 3 931 5 0.13 – – – 88 942 95 480 5 155 5.40 81 721 37 177 45.49 1 493 470
Page 42
40 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.2. E CL analysis by market segment and class of credit exposure continued 30 June 2025 Carrying amount of financial assets measured at fair value through profit or loss Stage 1 Gross carrying amount ECL Allowance ECL Coverage Rm Rm Rm % Personal and Private Banking – 516 720 5 006 0.97 Personal and Private Banking SA – 451 951 4 042 0.89 Transactions and Deposits – 9 089 291 3.20 Unsecured Lending – 63 296 2 206 3.49 Personal Loans – 16 927 681 4.02 Card – 46 369 1 525 3.29 Home Loans – 272 896 647 0.24 Vehicle and Asset Finance – 106 670 898 0.84 Retail Other – – – – Personal and Private Banking AR – 64 769 964 1.49 Business Banking – 150 333 676 0.45 Business Banking SA – 131 333 523 0.40 Business Banking AR – 19 000 153 0.81 Corporate and Investment Banking 121 520 401 715 1 127 0.28 Corporate and Investment Banking SA 121 520 325 583 654 0.20 Corporate and Investment Banking AR – 76 132 473 0.62 Head Office, Treasury and other operations – 4 878 (118) – Loans and advances to customers – 4 878 – – Reclassification to provisions – – (118) – Loans and advances to customers 121 520 1 073 646 6 691 0.62 Loans and advances to banks 24 026 64 705 44 0.07 Total loans and advances 145 546 1 138 351 6 735 0.59 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. 30 June 2025 Stage 2 Stage 3 Gross carrying amount ECL Allowance ECL Coverage Gross carrying amount ECL Allowance ECL Coverage Net carrying amount Rm Rm % Rm Rm % Rm 45 498 4 089 8.99 58 870 29 823 50.66 582 170 43 277 3 399 7.85 55 417 26 603 48.01 516 601 1 277 141 11.04 1 353 735 54.32 10 552 7 990 1 593 19.94 13 742 10 306 75.00 70 923 2 916 355 12.17 5 041 3 888 77.13 19 960 5 074 1 238 24.40 8 701 6 418 73.76 50 963 20 385 563 2.76 30 579 9 992 32.68 312 658 13 625 1 102 8.09 9 691 5 518 56.94 122 468 – – – 52 52 100.00 – 2 221 690 31.07 3 453 3 220 93.25 65 569 13 260 730 5.51 12 754 5 019 39.35 169 922 9 508 583 6.13 8 329 2 936 35.25 145 128 3 752 147 3.92 4 425 2 083 47.07 24 794 31 439 663 2.11 14 788 5 690 38.48 561 982 17 450 217 1.24 9 930 2 995 30.16 470 617 13 989 446 3.19 4 858 2 695 55.48 91 365 2 (57) – – (16) – 5 071 2 – – – 4 880 – (57) – – (16) – 191 90 199 5 425 6.01 86 412 40 516 46.89 1 319 145 4 320 5 0.12 – – – 93 002 94 519 5 430 5.74 86 412 40 516 46.89 1 412 147
Page 43
41 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.2. E CL analysis by market segment and class of credit exposure continued 30 June 2025 Carrying amount of financial assets measured at fair value through profit or loss Stage 1 Gross carrying amount ECL Allowance ECL Coverage Rm Rm Rm % Personal and Private Banking – 516 720 5 006 0.97 Personal and Private Banking SA – 451 951 4 042 0.89 Transactions and Deposits – 9 089 291 3.20 Unsecured Lending – 63 296 2 206 3.49 Personal Loans – 16 927 681 4.02 Card – 46 369 1 525 3.29 Home Loans – 272 896 647 0.24 Vehicle and Asset Finance – 106 670 898 0.84 Retail Other – – – – Personal and Private Banking AR – 64 769 964 1.49 Business Banking – 150 333 676 0.45 Business Banking SA – 131 333 523 0.40 Business Banking AR – 19 000 153 0.81 Corporate and Investment Banking 121 520 401 715 1 127 0.28 Corporate and Investment Banking SA 121 520 325 583 654 0.20 Corporate and Investment Banking AR – 76 132 473 0.62 Head Office, Treasury and other operations – 4 878 (118) – Loans and advances to customers – 4 878 – – Reclassification to provisions – – (118) – Loans and advances to customers 121 520 1 073 646 6 691 0.62 Loans and advances to banks 24 026 64 705 44 0.07 Total loans and advances 145 546 1 138 351 6 735 0.59 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. 30 June 2025 Stage 2 Stage 3 Gross carrying amount ECL Allowance ECL Coverage Gross carrying amount ECL Allowance ECL Coverage Net carrying amount Rm Rm % Rm Rm % Rm 45 498 4 089 8.99 58 870 29 823 50.66 582 170 43 277 3 399 7.85 55 417 26 603 48.01 516 601 1 277 141 11.04 1 353 735 54.32 10 552 7 990 1 593 19.94 13 742 10 306 75.00 70 923 2 916 355 12.17 5 041 3 888 77.13 19 960 5 074 1 238 24.40 8 701 6 418 73.76 50 963 20 385 563 2.76 30 579 9 992 32.68 312 658 13 625 1 102 8.09 9 691 5 518 56.94 122 468 – – – 52 52 100.00 – 2 221 690 31.07 3 453 3 220 93.25 65 569 13 260 730 5.51 12 754 5 019 39.35 169 922 9 508 583 6.13 8 329 2 936 35.25 145 128 3 752 147 3.92 4 425 2 083 47.07 24 794 31 439 663 2.11 14 788 5 690 38.48 561 982 17 450 217 1.24 9 930 2 995 30.16 470 617 13 989 446 3.19 4 858 2 695 55.48 91 365 2 (57) – – (16) – 5 071 2 – – – 4 880 – (57) – – (16) – 191 90 199 5 425 6.01 86 412 40 516 46.89 1 319 145 4 320 5 0.12 – – – 93 002 94 519 5 430 5.74 86 412 40 516 46.89 1 412 147
Page 44
42 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.2. E CL analysis by market segment and class of credit exposure continued 31 December 2025 Carrying amount of financial assets measured at fair value through profit or loss Stage 1 Gross carrying amount ECL Allowance ECL Coverage Rm Rm Rm % Personal and Private Banking – 525 411 5 116 0.97 Personal and Private Banking SA – 462 609 4 089 0.88 Transactions and Deposits – 9 415 263 2.79 Unsecured Lending – 64 178 2 280 3.55 Personal Loans – 17 095 742 4.34 Card – 47 083 1 538 3.27 Home Loans – 276 948 638 0.23 Vehicle and Asset Finance – 112 068 908 0.81 Retail Other – – – – Personal and Private Banking AR – 62 802 1 027 1.64 Business Banking – 155 006 750 0.48 Business Banking SA – 134 427 582 0.43 Business Banking AR – 20 579 168 0.82 Corporate and Investment Banking 118 407 431 538 1 343 0.31 Corporate and Investment Banking SA 118 407 348 541 898 0.26 Corporate and Investment Banking AR – 82 997 445 0.54 Head Office, Treasury and other operations – 4 188 (120) – Loans and advances to customers – 4 188 – – Reclassification to provisions – – (120) – Loans and advances to customers 118 407 1 116 143 7 089 0.64 Loans and advances to banks 22 018 60 434 40 0.07 Total loans and advances 140 425 1 176 577 7 129 0.61 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 45
43 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.2. E CL analysis by market segment and class of credit exposure continued 31 December 2025 Carrying amount of financial assets measured at fair value through profit or loss Stage 1 Gross carrying amount ECL Allowance ECL Coverage Rm Rm Rm % Personal and Private Banking – 525 411 5 116 0.97 Personal and Private Banking SA – 462 609 4 089 0.88 Transactions and Deposits – 9 415 263 2.79 Unsecured Lending – 64 178 2 280 3.55 Personal Loans – 17 095 742 4.34 Card – 47 083 1 538 3.27 Home Loans – 276 948 638 0.23 Vehicle and Asset Finance – 112 068 908 0.81 Retail Other – – – – Personal and Private Banking AR – 62 802 1 027 1.64 Business Banking – 155 006 750 0.48 Business Banking SA – 134 427 582 0.43 Business Banking AR – 20 579 168 0.82 Corporate and Investment Banking 118 407 431 538 1 343 0.31 Corporate and Investment Banking SA 118 407 348 541 898 0.26 Corporate and Investment Banking AR – 82 997 445 0.54 Head Office, Treasury and other operations – 4 188 (120) – Loans and advances to customers – 4 188 – – Reclassification to provisions – – (120) – Loans and advances to customers 118 407 1 116 143 7 089 0.64 Loans and advances to banks 22 018 60 434 40 0.07 Total loans and advances 140 425 1 176 577 7 129 0.61 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. 31 December 2025 Stage 2 Stage 3 Gross carrying amount ECL Allowance ECL Coverage Gross carrying amount ECL Allowance ECL Coverage Net carrying amount Rm Rm % Rm Rm % Rm 44 565 3 701 8.30 57 094 28 773 50.40 589 480 42 130 3 168 7.52 53 777 25 965 48.28 525 294 1 388 161 11.60 1 387 733 52.85 11 033 7 622 1 460 19.16 12 962 9 734 75.10 71 288 2 658 318 11.96 4 236 3 192 75.35 19 737 4 964 1 142 23.01 8 726 6 542 74.97 51 551 20 166 509 2.52 30 174 10 207 33.83 315 934 12 954 1 038 8.01 9 202 5 239 56.93 127 039 – – – 52 52 100.00 – 2 435 533 21.89 3 317 2 808 84.65 64 186 13 600 578 4.25 11 570 4 630 40.02 174 218 9 642 435 4.51 7 550 2 768 36.66 147 834 3 958 143 3.61 4 020 1 862 46.32 26 384 27 302 452 1.66 15 128 4 953 32.74 585 627 18 654 245 1.31 8 312 2 493 29.99 490 278 8 648 207 2.39 6 816 2 460 36.09 95 349 – (75) – – (21) – 4 404 – – – – – – 4 188 – (75) – – (21) – 216 85 467 4 656 5.45 83 792 38 335 45.75 1 353 729 2 424 6 0.25 – – – 84 830 87 891 4 662 5.30 83 792 38 335 45.75 1 438 559
Page 46
44 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance The following tables set out the breakdown of the ECL for loans and advances and undrawn facilities, by market segment: 30 June 2026 Personal and Private Banking SA Personal and Private Banking AR Business Banking SA Business Banking AR Corporate and Investment Banking SA Corporate and Investment Banking AR Head Office, Treasury and other operations Total expected credit losses Rm Rm Rm Rm Rm Rm Rm Rm Loans and advances 34 439 4 223 3 505 1 959 2 979 2 711 (217) 49 599 Stage 1 4 138 1 010 587 184 1 038 449 (139) 7 267 Stage 2 3 567 532 479 159 271 212 (65) 5 155 Stage 3 26 734 2 681 2 439 1 616 1 670 2 050 (13) 37 177 Undrawn facilities – – – 36 – 94 217 347 Stage 1 – – – 26 – 77 139 242 Stage 2 – – – 10 – 17 65 92 Stage 3 – – – – – – 13 13 Total loans and advances and undrawn facilities 34 439 4 223 3 505 1 995 2 979 2 805 – 49 946 30 June 2025 Personal and Private Banking SA Personal and Private Banking AR Business Banking SA Business Banking AR Corporate and Investment Banking SA Corporate and Investment Banking AR Head Office, Treasury and other operations Total expected credit losses Rm Rm Rm Rm Rm Rm Rm Rm Loans and advances 34 044 4 874 4 042 2 383 3 906 3 614 (182) 52 681 Stage 1 4 042 964 523 153 692 473 (112) 6 735 Stage 2 3 399 690 583 147 219 446 (54) 5 430 Stage 3 26 603 3 220 2 936 2 083 2 995 2 695 (16) 40 516 Undrawn facilities – – – 36 – 72 186 294 Stage 1 – – – 23 – 65 113 201 Stage 2 – – – 13 – 7 57 77 Stage 3 – – – – – – 16 16 Total loans and advances and undrawn facilities 34 044 4 874 4 042 2 419 3 906 3 686 4 52 975 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 47
45 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued 31 December 2025 Personal and Private Banking SA Personal and Private Banking AR Business Banking SA Business Banking AR Corporate and Investment Banking SA Corporate and Investment Banking AR Head Office, Treasury and other operations Total expected credit losses Rm Rm Rm Rm Rm Rm Rm Rm Loans and advances 33 222 4 368 3 785 2 173 3 676 3 118 (216) 50 126 Stage 1 4 089 1 027 582 168 937 451 (125) 7 129 Stage 2 3 168 533 435 143 246 207 (70) 4 662 Stage 3 25 965 2 808 2 768 1 862 2 493 2 460 (21) 38 335 Undrawn facilities – – – 25 – 78 216 319 Stage 1 – – – 18 – 60 117 195 Stage 2 – – – 7 – 18 78 103 Stage 3 – – – – – – 21 21 Total loans and advances and undrawn facilities 33 222 4 368 3 785 2 198 3 676 3 196 – 50 445 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 48
46 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued The following tables set out a reconciliation of the opening and closing IFRS 9 ECL allowances for loans and advances, by market segment. 30 June 2026 Loans and advances at amortised cost and undrawn facilities Personal and Private Banking SA Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Retail Other Personal Loans Card Rm Rm Rm Rm Rm Rm Balances at the beginning of the reporting period 1 157 4 252 9 222 11 354 7 185 52 Stage 1 263 742 1 538 638 908 – Stage 2 161 318 1 142 509 1 038 – Stage 3 733 3 192 6 542 10 207 5 239 52 Transfers between stages – – – – – – Stage 1 net transfers (2) (54) 50 173 (17) – Transfers to stage 1 33 93 477 269 139 – Transfers (to) stage 2 (17) (72) (374) (64) (115) – Transfers (to) stage 3 (18) (75) (53) (32) (41) – Stage 2 net transfers (57) (106) (769) 230 (1) – Transfers (to) stage 1 (30) (78) (444) (112) (115) – Transfers to stage 2 25 155 525 524 337 – Transfers (to) stage 3 (52) (183) (850) (182) (223) – Stage 3 net transfers 59 160 719 (403) 18 – Transfers (to) stage 1 (3) (15) (33) (157) (24) – Transfers (to) stage 2 (8) (83) (151) (460) (222) – Transfers to stage 3 70 258 903 214 264 – Credit impairment charges raised 293 1 078 2 141 891 1 054 – Stage 1 (4) 15 27 (174) 35 – Stage 2 73 102 854 (65) 138 – Stage 3 224 961 1 260 1 130 881 – Stage 3 write offs (381) (1 460) (2 030) (865) (986) – Stage 3 net change in interest 40 341 151 551 399 – Foreign exchange movements – – – – – – Stage 1 – – – – – – Stage 2 – – – – – – Stage 3 – – – – – – Balances at the end of the reporting period 1 109 4 211 9 484 11 931 7 652 52 Stage 1 257 703 1 615 637 926 – Stage 2 177 314 1 227 674 1 175 – Stage 3 675 3 194 6 642 10 620 5 551 52 The credit impairment charges raised in the current year arose as a result of, inter alia, increase in the exposures, changes in forward looking information and refinements to various factors that are incorporated in the ECL model.
Page 49
47 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued The following tables set out a reconciliation of the opening and closing IFRS 9 ECL allowances for loans and advances, by market segment. 30 June 2026 Loans and advances at amortised cost and undrawn facilities Personal and Private Banking SA Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Retail Other Personal Loans Card Rm Rm Rm Rm Rm Rm Balances at the beginning of the reporting period 1 157 4 252 9 222 11 354 7 185 52 Stage 1 263 742 1 538 638 908 – Stage 2 161 318 1 142 509 1 038 – Stage 3 733 3 192 6 542 10 207 5 239 52 Transfers between stages – – – – – – Stage 1 net transfers (2) (54) 50 173 (17) – Transfers to stage 1 33 93 477 269 139 – Transfers (to) stage 2 (17) (72) (374) (64) (115) – Transfers (to) stage 3 (18) (75) (53) (32) (41) – Stage 2 net transfers (57) (106) (769) 230 (1) – Transfers (to) stage 1 (30) (78) (444) (112) (115) – Transfers to stage 2 25 155 525 524 337 – Transfers (to) stage 3 (52) (183) (850) (182) (223) – Stage 3 net transfers 59 160 719 (403) 18 – Transfers (to) stage 1 (3) (15) (33) (157) (24) – Transfers (to) stage 2 (8) (83) (151) (460) (222) – Transfers to stage 3 70 258 903 214 264 – Credit impairment charges raised 293 1 078 2 141 891 1 054 – Stage 1 (4) 15 27 (174) 35 – Stage 2 73 102 854 (65) 138 – Stage 3 224 961 1 260 1 130 881 – Stage 3 write offs (381) (1 460) (2 030) (865) (986) – Stage 3 net change in interest 40 341 151 551 399 – Foreign exchange movements – – – – – – Stage 1 – – – – – – Stage 2 – – – – – – Stage 3 – – – – – – Balances at the end of the reporting period 1 109 4 211 9 484 11 931 7 652 52 Stage 1 257 703 1 615 637 926 – Stage 2 177 314 1 227 674 1 175 – Stage 3 675 3 194 6 642 10 620 5 551 52 The credit impairment charges raised in the current year arose as a result of, inter alia, increase in the exposures, changes in forward looking information and refinements to various factors that are incorporated in the ECL model. 30 June 2026 Personal and Private Banking AR Business Banking SA Business Banking AR Corporate and Investment Banking SA Corporate and Investment Banking AR Head Office, Treasury and other operations Total expected credit losses Rm Rm Rm Rm Rm Rm Rm 4 368 3 785 2 198 3 676 3 196 – 50 445 1 027 582 186 937 511 (8) 7 324 533 435 150 246 225 8 4 765 2 808 2 768 1 862 2 493 2 460 – 38 356 – – – – – – – (18) 93 78 (26) (2) (1) 274 77 147 105 (28) 13 (3) 1 322 (49) (37) (16) 2 (14) 1 (755) (46) (17) (11) – (1) 1 (293) (232) (152) (67) 27 1 2 (1 124) (68) (146) (40) 28 (13) 2 (1 016) 51 50 16 (2) 14 (1) 1 694 (215) (56) (43) 1 – 1 (1 802) 250 59 (11) (1) 1 (1) 850 (9) (1) (65) – – – (307) (2) (13) – – – 1 (938) 261 73 54 (1) 1 (2) 2 095 762 580 182 384 224 (3) 7 586 208 (88) (35) 127 65 (70) 106 340 196 101 (2) 24 (19) 1 742 214 472 116 259 135 86 5 738 (80) (1 074) (255) (1 170) (582) (5) (8 888) 39 214 52 89 223 1 2 100 (866) – (182) – (256) 7 (1 297) (207) – (19) – (48) 79 (195) (109) – (15) – (21) 9 (136) (550) – (148) – (187) (81) (966) 4 223 3 505 1 995 2 979 2 805 – 49 946 1 010 587 210 1 038 526 – 7 509 532 479 169 271 229 – 5 247 2 681 2 439 1 616 1 670 2 050 – 37 190
Page 50
48 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued 30 June 2025 Personal and Private Banking SA Loans and advances at amortised cost and undrawn facilities Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Retail Other Personal Loans Card Rm Rm Rm Rm Rm Rm Balances at the beginning of the reporting period 1 340 5 520 9 865 10 451 7 058 52 Stage 1 321 627 1 498 634 969 – Stage 2 177 479 1 241 618 1 125 – Stage 3 842 4 414 7 126 9 199 4 964 52 Transfers between stages – – – – – – Stage 1 net transfers (8) 24 74 222 7 – Transfers to stage 1 44 139 508 315 172 – Transfers (to) stage 2 (18) (59) (350) (63) (118) – Transfers (to) stage 3 (34) (56) (84) (30) (47) – Stage 2 net transfers (69) (183) (774) 60 (71) Transfers (to) stage 1 (40) (125) (466) (149) (142) – Transfers to stage 2 29 153 538 451 327 – Transfers (to) stage 3 (58) (211) (846) (242) (256) – Stage 3 net transfers 77 159 700 (282) 64 – Transfers (to) stage 1 (5) (14) (42) (166) (31) – Transfers (to) stage 2 (10) (94) (188) (388) (209) – Transfers to stage 3 92 267 930 272 304 – Credit impairment charges raised 241 1 000 2 144 794 1 072 – Stage 1 (22) 30 (47) (209) (78) – Stage 2 33 59 771 (115) 48 – Stage 3 230 911 1 420 1 118 1 102 – Stage 3 write offs (455) (2 030) (3 033) (609) (990) – Stage 3 net change in interest 41 434 205 566 378 – Foreign exchange movements – – – – – – Stage 1 – – – – – – Stage 2 – – – – – – Stage 3 – – – – – – Balances at the end of the reporting period 1 167 4 924 9 181 11 202 7 518 52 Stage 1 291 681 1 525 647 898 – Stage 2 141 355 1 238 563 1 102 – Stage 3 735 3 888 6 418 9 992 5 518 52 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. In addition, 'Credit impairment charges raised' and 'Foreign exchange movements' in the above table has been broken down into movements per ECL staging.
Page 51
49 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued 30 June 2025 Personal and Private Banking SA Loans and advances at amortised cost and undrawn facilities Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Retail Other Personal Loans Card Rm Rm Rm Rm Rm Rm Balances at the beginning of the reporting period 1 340 5 520 9 865 10 451 7 058 52 Stage 1 321 627 1 498 634 969 – Stage 2 177 479 1 241 618 1 125 – Stage 3 842 4 414 7 126 9 199 4 964 52 Transfers between stages – – – – – – Stage 1 net transfers (8) 24 74 222 7 – Transfers to stage 1 44 139 508 315 172 – Transfers (to) stage 2 (18) (59) (350) (63) (118) – Transfers (to) stage 3 (34) (56) (84) (30) (47) – Stage 2 net transfers (69) (183) (774) 60 (71) Transfers (to) stage 1 (40) (125) (466) (149) (142) – Transfers to stage 2 29 153 538 451 327 – Transfers (to) stage 3 (58) (211) (846) (242) (256) – Stage 3 net transfers 77 159 700 (282) 64 – Transfers (to) stage 1 (5) (14) (42) (166) (31) – Transfers (to) stage 2 (10) (94) (188) (388) (209) – Transfers to stage 3 92 267 930 272 304 – Credit impairment charges raised 241 1 000 2 144 794 1 072 – Stage 1 (22) 30 (47) (209) (78) – Stage 2 33 59 771 (115) 48 – Stage 3 230 911 1 420 1 118 1 102 – Stage 3 write offs (455) (2 030) (3 033) (609) (990) – Stage 3 net change in interest 41 434 205 566 378 – Foreign exchange movements – – – – – – Stage 1 – – – – – – Stage 2 – – – – – – Stage 3 – – – – – – Balances at the end of the reporting period 1 167 4 924 9 181 11 202 7 518 52 Stage 1 291 681 1 525 647 898 – Stage 2 141 355 1 238 563 1 102 – Stage 3 735 3 888 6 418 9 992 5 518 52 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. In addition, 'Credit impairment charges raised' and 'Foreign exchange movements' in the above table has been broken down into movements per ECL staging. 30 June 2025 Personal and Private Banking AR Business Banking SA Business Banking AR Corporate and Investment Banking SA Corporate and Investment Banking AR Head Office, Treasury and other operations Total expected credit losses Rm Rm Rm Rm Rm Rm Rm 4 641 3 973 2 533 4 298 3 552 2 53 285 953 618 172 619 591 2 7 004 690 473 204 283 349 – 5 639 2 998 2 882 2 157 3 396 2 612 – 40 642 – – – – – – – 91 152 104 32 (75) – 623 105 210 133 36 (5) – 1 657 (8) (43) (19) (3) (71) – (752) (6) (15) (10) (1) 1 – (282) (123) (163) (232) (57) 82 – (1 530) (96) (192) (121) (37) 6 – (1 362) 23 74 28 3 69 – 1 695 (50) (45) (139) (23) 7 – (1 863) 32 11 128 25 (7) – 907 (10) (17) (11) – – – (296) (14) (32) (10) – 1 – (944) 56 60 149 25 (8) – 2 147 891 598 65 353 173 5 7 336 (19) (247) (124) 41 24 (40) (691) 167 273 167 (7) 24 (22) 1 266 743 572 22 319 125 67 6 761 (503) (780) (647) (917) (53) (3) (10 020) 154 251 144 172 30 – 2 375 (309) – 324 – (16) – (1) (61) – 24 – (2) 39 – (44) – 21 – (2) 25 – (204) – 279 – (12) (64) (1) 4 874 4 042 2 419 3 906 3 686 4 52 975 964 523 176 692 538 1 6 936 690 583 160 219 453 3 5 507 3 220 2 936 2 083 2 995 2 695 – 40 532
Page 52
50 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued 31 December 2025 Personal and Private Banking SA Loans and advances at amortised cost and undrawn facilities Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Retail Other Personal Loans Card Rm Rm Rm Rm Rm Rm Balances at the beginning of the reporting period 1 340 5 520 9 865 10 451 7 058 52 Stage 1 321 627 1 498 634 969 – Stage 2 177 479 1 241 618 1 125 – Stage 3 842 4 414 7 126 9 199 4 964 52 Transfers between stages – – – – – – Stage 1 net transfers 41 25 108 446 59 – Transfers to stage 1 93 150 839 549 257 – Transfers (to) stage 2 (13) (44) (572) (51) (123) – Transfers (to) stage 3 (39) (81) (159) (52) (75) – Stage 2 net transfers (102) (29) (946) 171 82 – Transfers (to) stage 1 (85) (113) (744) (171) (177) – Transfers to stage 2 37 278 940 633 568 – Transfers (to) stage 3 (54) (194) (1 142) (291) (309) – Stage 3 net transfers 61 4 838 (617) (141) – Transfers (to) stage 1 (9) (36) (95) (378) (80) – Transfers (to) stage 2 (24) (234) (368) (582) (445) – Transfers to stage 3 94 274 1 301 343 384 – Credit impairment charges raised 494 2 107 4 007 1 238 1 641 – Stage 1 (99) 90 (68) (442) (120) – Stage 2 86 (132) 847 (280) (169) – Stage 3 507 2 149 3 228 1 960 1 930 – Stage 3 write offs (766) (4 141) (5 030) (1 453) (2 291) – Stage 3 net change in interest 89 766 380 1 118 777 – Foreign exchange movements – – – – – – Stage 1 – – – – – – Stage 2 – – – – – – Stage 3 – – – – – – Balances at the end of the reporting period 1 157 4 252 9 222 11 354 7 185 52 Stage 1 263 742 1 538 638 908 – Stage 2 161 318 1 142 509 1 038 – Stage 3 733 3 192 6 542 10 207 5 239 52 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 53
51 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.3 R econciliation of ECL allowance continued 31 December 2025 Personal and Private Banking SA Loans and advances at amortised cost and undrawn facilities Transactions and Deposits Unsecured Lending Home Loans Vehicle and Asset Finance Retail Other Personal Loans Card Rm Rm Rm Rm Rm Rm Balances at the beginning of the reporting period 1 340 5 520 9 865 10 451 7 058 52 Stage 1 321 627 1 498 634 969 – Stage 2 177 479 1 241 618 1 125 – Stage 3 842 4 414 7 126 9 199 4 964 52 Transfers between stages – – – – – – Stage 1 net transfers 41 25 108 446 59 – Transfers to stage 1 93 150 839 549 257 – Transfers (to) stage 2 (13) (44) (572) (51) (123) – Transfers (to) stage 3 (39) (81) (159) (52) (75) – Stage 2 net transfers (102) (29) (946) 171 82 – Transfers (to) stage 1 (85) (113) (744) (171) (177) – Transfers to stage 2 37 278 940 633 568 – Transfers (to) stage 3 (54) (194) (1 142) (291) (309) – Stage 3 net transfers 61 4 838 (617) (141) – Transfers (to) stage 1 (9) (36) (95) (378) (80) – Transfers (to) stage 2 (24) (234) (368) (582) (445) – Transfers to stage 3 94 274 1 301 343 384 – Credit impairment charges raised 494 2 107 4 007 1 238 1 641 – Stage 1 (99) 90 (68) (442) (120) – Stage 2 86 (132) 847 (280) (169) – Stage 3 507 2 149 3 228 1 960 1 930 – Stage 3 write offs (766) (4 141) (5 030) (1 453) (2 291) – Stage 3 net change in interest 89 766 380 1 118 777 – Foreign exchange movements – – – – – – Stage 1 – – – – – – Stage 2 – – – – – – Stage 3 – – – – – – Balances at the end of the reporting period 1 157 4 252 9 222 11 354 7 185 52 Stage 1 263 742 1 538 638 908 – Stage 2 161 318 1 142 509 1 038 – Stage 3 733 3 192 6 542 10 207 5 239 52 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. 31 December 2025 Personal and Private Banking AR Business Banking SA Business Banking AR Corporate and Investment Banking SA Corporate and Investment Banking AR Head Office, Treasury and other operations Total expected credit losses Rm Rm Rm Rm Rm Rm Rm 4 641 3 973 2 533 4 298 3 552 2 53 285 953 618 172 619 591 2 7 004 690 473 204 283 349 – 5 639 2 998 2 882 2 157 3 396 2 612 – 40 642 – – – – – – – 13 194 115 32 (16) (2) 1 015 15 268 156 44 (10) (1) 2 360 – (49) (16) (11) (6) (1) (886) (2) (25) (25) (1) – – (459) (20) (226) (312) (48) 7 3 (1 420) (13) (243) (135) (44) 10 2 (1 713) 1 89 21 19 6 – 2 592 (8) (72) (198) (23) (9) 1 (2 299) 7 32 197 16 9 (1) 405 (3) (25) (21) – – – (647) – (40) (5) (8) – – (1 706) 10 97 223 24 9 (1) 2 758 1 472 1 027 260 1 025 307 4 13 582 377 (230) (321) 286 (64) 5 (586) 27 188 148 11 (131) 22 617 1 068 1 069 433 728 502 (23) 13 551 (524) (1 610) (1 768) (1 953) (604) (5) (20 145) 123 395 346 306 177 (6) 4 471 (1 344) – 827 – (236) 5 (748) (316) – 220 – (38) 25 (109) (164) – 110 – (17) – (71) (864) – 497 – (181) (20) (568) 4 368 3 785 2 198 3 676 3 196 – 50 445 1 027 582 186 937 511 (8) 7 324 533 435 150 246 225 8 4 765 2 808 2 768 1 862 2 493 2 460 – 38 356
Page 54
52 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.4 F orward-looking assumptions Macroeconomic scenarios ECL estimation must reflect an unbiased and probability-weighted estimate of future losses. This is determined by evaluating a range of possible macroeconomic outcomes. Several factors are considered in developing macroeconomic scenarios, including economic growth or contraction, geopolitical uncertainty, expected inflation, sector-specific impacts, business confidence, property prices, household spending, exchange rate fluctuations, unemployment rates, key monetary and fiscal responses initiated by governments and regulatory authorities. Global conditions remained volatile through the first half of 2026, with uncertainty amplified by developments in the Middle East. The approved macroeconomic scenarios appropriately captured this risk through a severe downside and more measured upside. By 30 June 2026, however, market indicators had shown relative resilience, supporting a prudent recalibration of scenario weightings. The Group revised its probability-weightings from 40%, 30%, and 30% for the baseline, upside, and downside scenarios to 45%, 40% and 15%, ensuring that the impairment outlook remains appropriately aligned to the assessed likelihood of each scenario. The following table shows the key forecast assumptions used for South Africa to calculate the Group’s credit impairment charge for the reporting period ended: 30 June 2026 Baseline Mild Upside Mild Downside 2026 2027 2028 2029 2026 2027 2028 2029 2026 2027 2028 2029 Real GDP (%) 1.4 1.7 2.2 2.2 1.9 2.3 2.6 2.7 0.3 0.8 1.3 1.5 CPI (%) 4.1 3.5 3.1 3.0 3.4 3.1 3.0 2.9 5.4 5.0 3.9 4.3 Average repo rate (%) 7.0 6.8 6.3 6.3 6.8 6.1 5.5 5.5 7.6 8.6 7.6 7.5 30 June 2025 Baseline Mild Upside Mild Downside 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 Real GDP (%) 1.0 1.4 1.7 1.8 1.5 1.9 2.2 2.3 (1.5) 0.2 0.8 0.8 CPI (%) 3.3 4.4 4.6 4.6 3.0 3.6 4.1 4.1 4.1 5.8 5.4 5.3 Average repo rate (%) 7.2 7.0 7.0 7.0 7.1 6.3 6.3 6.3 7.8 8.4 8.3 8.3 31 December 2025 Baseline Mild Upside Mild Downside 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 Real GDP (%) 1.3 1.7 1.8 2.1 1.6 2.2 2.3 2.6 0.8 0.5 0.9 1.2 CPI (%) 3.3 3.7 3.6 3.4 3.2 3.1 3.1 3.1 3.3 4.9 4.7 4.6 Average repo rate (%) 7.3 6.8 6.3 6.0 7.2 6.3 5.5 5.3 7.3 8.0 7.8 7.8
Page 55
53 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.4 F orward-looking assumptions continued 4.4 Forward-looking assumptions Macroeconomic scenarios ECL estimation must reflect an unbiased and probability-weighted estimate of future losses. This is determined by evaluating a range of possible macroeconomic outcomes. Several factors are considered in developing macroeconomic scenarios, including economic growth or contraction, geopolitical uncertainty, expected inflation, sector-specific impacts, business confidence, property prices, household spending, exchange rate fluctuations, unemployment rates, key monetary and fiscal responses initiated by governments and regulatory authorities. Global conditions remained volatile through the first half of 2026, with uncertainty amplified by developments in the Middle East. The approved macroeconomic scenarios appropriately captured this risk through a severe downside and more measured upside. By 30 June 2026, however, market indicators had shown relative resilience, supporting a prudent recalibration of scenario weightings. The Group revised its probability-weightings from 40%, 30%, and 30% for the baseline, upside, and downside scenarios to 45%, 40% and 15%, ensuring that the impairment outlook remains appropriately aligned to the assessed likelihood of each scenario. The following table shows the key forecast assumptions used for South Africa to calculate the Group’s credit impairment charge for the reporting period ended: 30 June 2026 Baseline Mild Upside Mild Downside 2026 2027 2028 2029 2026 2027 2028 2029 2026 2027 2028 2029 Real GDP (%) 1.4 1.7 2.2 2.2 1.9 2.3 2.6 2.7 0.3 0.8 1.3 1.5 CPI (%) 4.1 3.5 3.1 3.0 3.4 3.1 3.0 2.9 5.4 5.0 3.9 4.3 Average repo rate (%) 7.0 6.8 6.3 6.3 6.8 6.1 5.5 5.5 7.6 8.6 7.6 7.5 30 June 2025 Baseline Mild Upside Mild Downside 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 Real GDP (%) 1.0 1.4 1.7 1.8 1.5 1.9 2.2 2.3 (1.5) 0.2 0.8 0.8 CPI (%) 3.3 4.4 4.6 4.6 3.0 3.6 4.1 4.1 4.1 5.8 5.4 5.3 Average repo rate (%) 7.2 7.0 7.0 7.0 7.1 6.3 6.3 6.3 7.8 8.4 8.3 8.3 31 December 2025 Baseline Mild Upside Mild Downside 2025 2026 2027 2028 2025 2026 2027 2028 2025 2026 2027 2028 Real GDP (%) 1.3 1.7 1.8 2.1 1.6 2.2 2.3 2.6 0.8 0.5 0.9 1.2 CPI (%) 3.3 3.7 3.6 3.4 3.2 3.1 3.1 3.1 3.3 4.9 4.7 4.6 Average repo rate (%) 7.3 6.8 6.3 6.0 7.2 6.3 5.5 5.3 7.3 8.0 7.8 7.8 Sensitivity of expected credit losses For the purposes of the Group’s actual weighting of its economic scenarios, a 45% probability weighting is applied to the baseline scenario, 40% to the upside scenario, and 15% to the downside scenario. However, given the level of uncertainty required in the determination of ECL, the Group has conducted a sensitivity analysis in order to indicate the impact on the ECL when assigning a probability weighting of 100% to each macroeconomic variable scenario. The table below reflects the impact of changing the probability assigned to each scenario to 100% and does not include management adjustments required to provide a more appropriate assessment of risk. 30 June 2026 Rm % Change ECL allowance on stage 1 and stage 2 loans and advances 12 422 – Baseline 12 080 (3) Upside 11 047 (11) Downside 14 277 15 30 June 2025 Rm % Change ECL allowance on stage 1 and stage 2 loans and advances 12 165 – Baseline 11 789 (3) Upside 10 800 (11) Downside 14 078 16 31 December 2025 Rm % Change ECL allowance on stage 1 and stage 2 loans and advances 11 791 – Baseline 11 576 (2) Upside 10 598 (10) Downside 13 188 12
Page 56
54 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 4. Cr edit impairment charges 4.4 F orward-looking assumptions continued In addition, as at 30 June 2026, the Group assessed what the impact on expected credit losses would be, if 5% of the gross carrying amount of loans and advances to customers in stage 1 experience a SICR and move to stage 2. The ECL changes below include the effect on undrawn committed facilities, which are reflected as ‘provisions’ in the statement of financial position. This impact has been presented below: 30 June 2026 Stage 2 Increase in gross carrying amount Increase in expected credit loss Rm Rm Personal and Private Banking SA 23 611 1 676 Personal and Private Banking AR 3 239 607 Business Banking SA 7 069 248 Business Banking AR 1 061 30 Corporate and Investment Banking SA 18 429 247 Corporate and Investment Banking AR 4 062 54 30 June 2025 Stage 2 Increase in gross carrying amount Increase in expected credit loss Rm Rm Personal and Private Banking SA 22 598 1 573 Personal and Private Banking AR 3 238 958 Business Banking SA 6 567 376 Business Banking AR 950 30 Corporate and Investment Banking SA 16 279 169 Corporate and Investment Banking AR 3 807 98 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. 31 December 2025 Stage 2 Increase in gross carrying amount Increase in expected credit loss Rm Rm Personal and Private Banking SA 23 130 1 536 Personal and Private Banking AR 3 140 636 Business Banking SA 6 721 274 Business Banking AR 1 029 29 Corporate and Investment Banking SA 17 427 183 Corporate and Investment Banking AR 4 150 77 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 57
55 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 5. O perating expenses 30 June 31 December 2026 2025 Change 2025 Breakdown of operating expenses Rm Rm % Rm Amortisation of intangible assets 1 340 1 429 (6) 2 839 Auditors’ remuneration 332 317 5 614 Cash transportation 546 506 8 966 Depreciation 1 609 1 583 2 3 200 Equipment costs 314 284 11 622 Information technology 3 800 3 581 6 7 078 Marketing costs 1 061 1 169 (9) 2 298 Other operating costs (includes net fraud losses, travel and entertainment costs) 858 607 41 1 138 Printing and stationery 179 193 (7) 394 Professional fees 1 463 1 372 7 3 329 Property costs 966 981 (2) 1 982 Staff costs 18 250 17 294 6 36 373 Bonuses 1 358 1 359 (0) 4 054 Deferred cash and share-based payments 1 074 814 32 1 914 Other staff costs 738 580 27 1 244 Salaries and current service costs on post-retirement benefit funds 14 841 14 266 4 28 579 Training costs 239 275 (13) 582 Straight line lease expenses on short term leases and low value assets 103 93 11 235 Telephone and postage 572 635 (10) 1 167 31 393 30 044 4 62 235 In June 2025, the Group misclassified VISA card fees within Professional fees instead of Other operating costs. As a result, Professional fees has been restated from R1 435m and Other operating costs from R544m to the values disclosed in the table above. Other staff costs’ includes recruitment costs, membership fees to professional bodies, staff parking, restructuring costs, study assistance, staff relocation and refreshment costs.
Page 58
56 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 5. O perating expenses 30 June 31 December Breakdown of IT-related spend included in operating expenses 2026 2025 Change 2025 Rm Rm % Rm Amortisation of intangible assets and depreciation of IT equipment 1 722 1 805 (5) 3 577 Information technology 3 800 3 581 6 7 078 Staff costs 2 459 2 204 12 4 493 of which staff costs pre the capitalisation of project-related resource costs 2 623 2 413 9 4 922 Other IT-related spend 798 600 33 1 517 8 779 8 190 7 16 665 Operating costs increased by 4% (CCY 6%) to R31 393m (30 June 2025: R30 044m) reflecting an increase in staff costs of 6% (CCY 7%) whilst non-staff costs increased by 3% (CCY 4%). Staff cost growth mainly reflects salary inflation and the impact of investment hires. Non-staff cost growth was well-contained as continued investment into digital capabilities was partially offset by technology infrastructure cost optimisation, as well as lower amortisation, marketing and property-related costs. • Amortisation o f intangible assets decreased by 6% (CCY 6%) to R1 340m as Goodwill and intangible assets decreased to R14 243m (30 June 2025: R15 982m) reflecting impairments during the second half of 2025 and lower Separation amortisation. • Cash tr ansportation costs increased by 8% (CCY 8%) to R546m from higher participation costs and increased fuel prices. • Depr eciation of R1 609m increased by 2% (CCY 3%) as investment into retail branch and corporate property upgrades was offset by continued optimisation of the property portfolio. • E quipment costs increased by 11% (CCY 12%) to R314m and mainly reflects investment in card acquiring point-of-sale devices. • In formation technology costs increased by 6% (CCY 7%) to R3 800m mainly reflecting continuing investment into digital capabilities including cybersecurity, cloud and data, which were partially offset by optimisation of infrastructure costs. • Mark eting costs decreased by 9% (CCY 8%) to R1 061m reflecting optimization of brand and sponsorship spend. • Other operating costs increased by 41% (CCY 47%) to R858m and growth mainly reflects higher frauds and losses as well as depositor insurance costs in Africa Regions. • P rofessional fees increased by 7% (CCY 7%) to R1 463m from lower capitalisation of technology investment spend. • P roperty costs decreased by 2% (CCY 0%) to R966m and mainly reflect ongoing optimisation efforts in both corporate and retail properties. • S taff costs increased by 6% (CCY 7%) to R18 250m (30 June 2025: R17 294m). Salaries of R14 841m (30 June 2025: R14 266m) increased by 4% (CCY 6%) as salary inflation and investments in the Africa Regions was partially offset by the impact of lower headcount in South Africa. Bonuses of R1 358m (30 June 2025: R1 359m) were largely in line with prior year (CCY 1%). Deferred cash and share-based payments of R1 074m (30 June 2025: R814m) increased by 32% (CCY 34%) in part from key people investments. • T elephone and postage costs decreased by 10% (CCY 9%) to R572m reflecting lower communication costs and market data subscription costs.
Page 59
57 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 6. I ndirect taxation 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Training levy 155 150 3 270 Value-added tax net of input credits 1 085 1 042 4 2 259 1 240 1 192 4 2 529 7. T axation expense 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Reconciliation between operating profit before income tax and the taxation expense Operating profit before income tax 18 841 17 473 8 34 684 Share of post-tax results of associates and joint ventures (137) (164) (16) (318) 18 704 17 309 8 34 366 Tax calculated at a tax rate of 27% 5 050 4 673 8 9 279 Effect of different rates in other countries 457 481 (5) 1 218 Expenses not deductible for tax purposes 643 450 43 1 144 Assessed losses 32 15 >100 14 Dividend income (657) (801) (18) (1 559) Non-taxable interest (437) (413) 6 (822) Deductible expenditure not recognised in profit and loss (132) (145) (9) (284) Other income not subject to tax (19) (8) >100 (20) Other (104) 96 <(100) (29) Items of a capital nature 8 182 (96) 141 4 841 4 530 7 9 082 Expenses not deductible for tax purposes include additional tax levies and general non-deductible expenses due to the application of in-country tax legislation. Assessed losses include reversals of previously recognised tax assets, utilisation of previously unrecognised losses and additional losses incurred where no deferred tax assets were recognised. Non-taxable interest relates to interest earned from certain governments as well as interest earned on certain capital instruments, which is exempt from tax.
Page 60
58 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 8. L oans and advances Loans and advances to customers by market segment (Rbn) Jun 2026 612 185 603 4 Dec 2025 586 174 589 4 Personal and Private Banking Business Banking Corporate and Investment Banking Head Office, Treasury and other operations Jun 2025 562 170 582 5 30 June 31 December 2026 2025 2025 % % % Loans and advances to customers 94.1 93.4 94.0 Personal and Private Banking 40.4 41.2 40.9 Business Banking 12.4 12.0 12.1 Corporate and Investment Banking 41.0 39.8 40.7 Head Office, Treasury and other operations 0.3 0.4 0.3 Loans and advances to banks 5.9 6.6 6.0 100.0 100.0 100.0 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 61
59 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 8. L oans and advances 30 June 31 December 2026 2025 Change 2025 Loans and advances to customers by segment Rm Rm % Rm Personal and Private Banking Personal and Private Banking SA 571 310 550 645 4 558 516 Credit cards 59 866 57 869 3 58 555 Instalment credit agreements 107 869 98 986 9 102 024 Loans to associates and joint ventures 25 065 23 078 9 23 896 Mortgages 330 854 322 956 2 326 764 Other loans and advances 11 205 8 225 36 9 108 Overdrafts 8 708 9 908 (12) 9 410 Personal and term loans 27 743 29 623 (6) 28 759 Personal and Private Banking AR 70 531 70 443 0 68 555 Gross loans and advances to customers 641 841 621 088 3 627 071 Credit impairment charges on loans and advances to customers (38 662) (38 918) (1) (37 590) 603 179 582 170 4 589 481 Business Banking Business Banking SA 161 236 149 170 8 151 618 Credit cards 1 004 786 28 816 Instalment credit agreements 39 709 36 443 9 37 739 Loans to associates and joint ventures 3 708 3 739 (1) 3 822 Mortgages 27 287 25 136 9 25 787 Other loans and advances 2 781 1 940 43 2 298 Overdrafts 30 638 28 611 7 28 302 Personal and term loans 56 109 52 515 7 52 854 Business Banking AR 29 352 27 177 8 28 557 Gross loans and advances to customers 190 588 176 347 8 180 175 Credit impairment charges on loans and advances to customers (5 464) (6 425) (15) (5 958) 185 124 169 922 9 174 217 Corporate and Investment Banking Corporate and Investment Banking SA 518 784 474 482 9 493 913 Foreign currency loans 81 587 67 058 22 74 869 Credit linked notes 4 718 4 094 15 4 458 Mortgages 78 163 70 652 11 74 839 Term loans 155 952 140 235 11 147 971 Overdrafts 20 868 11 828 76 17 867 Overnight finance 27 832 32 959 (16) 28 892 Preference shares 37 901 36 805 3 38 969 Reverse repurchase agreements 90 747 90 566 0 84 855 Other loans and advances 21 016 20 285 4 21 193 Corporate and Investment Banking AR 98 863 94 980 4 98 462 Gross loans and advances to customers 617 647 569 462 8 592 375 Credit impairment charges on loans and advances to customers (5 679) (7 480) (24) (6 748) 611 968 561 982 9 585 627 In June 2025, Corporate and Investment Banking disclosed Credit linked notes and Foreign currency loans amounting to R71 152m within a single line item. To improve transparency, Corporate and Investment Banking now discloses these items separately as reflected in the table above.
Page 62
60 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 8. L oans and advances 30 June 31 December 2026 2025 Change 2025 Loans and advances to customers by segment Rm Rm % Rm Head Office, Treasury and other operations Gross loans and advances to customers 4 042 4 880 (17) 4 188 Credit impairment charges on loans and advances to customers 215 191 13 216 4 257 5 071 ( 16) 4 404 Total loans and advances Gross loans and advances to customers 1 454 118 1 371 777 6 1 403 809 Gross loans and advances to banks 88 951 93 051 (4) 84 876 Gross loans and advances 1 543 069 1 464 828 5 1 488 685 Credit impairment charges on loans and advances (49 599) (52 681) (6) (50 126) Credit impairment charges on loans and advances to customers (49 590) (52 632) (6) (50 080) Credit impairment charges on loans and advances to banks (9) (49) (82) (46) Net loans and advances including reverse repurchase agreements 1 493 470 1 412 147 6 1 438 559 Less: Reverse repurchase agreements (122 441) (122 282) (0) (104 965) Net loans and advances excluding reverse repurchase agreements 1 371 029 1 289 865 6 1 333 594 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 63
61 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 9. Deposits and deb t funding Deposits due to customers by segment (Rbn) Jun 2026 690 471 (5) Dec 2025 669 309 467 (4) 314 Jun 2025 642 299 465 (3) Personal and Private Banking Business Banking Corporate and Investment Banking Head Office, Treasury and other operations 30 June 31 December 2026 2025 2025 Total funding mix % % % Deposits due to customers 77.0 79.0 77.7 Personal and Private Banking 24.7 26.2 25.1 Business Banking 16.5 16.9 16.7 Corporate and Investment Banking 36.1 36.1 36.1 Head Office, Treasury and other operations (0.3) (0.2) (0.2) Deposits from banks 10.8 9.9 9.9 Debt funding 12.2 11.1 12.4 100.0 100.0 100.0 The segment mix table and graphs have been restated. Refer to the reporting changes overview in note 13.
Page 64
62 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 9. Deposits and deb t funding 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Deposits due to customers by segment Personal and Private Banking 471 260 464 658 1 467 393 Personal and Private Banking SA 370 661 363 051 2 367 515 Call deposits 605 631 (4) 623 Cheque account deposits 43 021 40 746 6 40 842 Credit card deposits 1 852 1 885 (2) 1 950 Fixed deposits 84 619 93 071 (9) 88 469 Foreign currency deposits 1 431 1 673 (14) 1 254 Notice deposits 29 795 27 421 9 28 742 Other deposits 497 530 (6) 470 Saving and transmission deposits 208 841 197 094 6 205 165 Personal and Private Banking AR 100 599 101 607 (1) 99 878 Business Banking 313 751 299 141 5 308 811 Business Banking SA 263 328 250 974 5 260 742 Call deposits 11 755 14 129 (17) 14 885 Cheque account deposits 87 537 79 521 10 84 463 Credit card deposits 150 137 9 127 Fixed deposits 33 026 33 893 (3) 36 136 Foreign currency deposits 5 737 16 093 (64) 7 438 Notice deposits 13 189 8 814 50 10 331 Other deposits 107 47 >100 128 Saving and transmission deposits 111 827 98 340 14 107 234 Business Banking AR 50 423 48 167 5 48 069 Corporate and Investment Banking 689 709 641 518 8 669 212 Corporate and Investment Banking SA 569 132 522 462 9 547 593 Call deposits 121 504 101 863 19 104 243 Cheque account deposits 139 818 148 054 (6) 146 990 Credit card deposits 29 27 7 28 Fixed deposits 138 240 109 315 26 141 566 Foreign currency deposits 52 802 48 268 9 47 782 Notice deposits 70 628 64 338 10 61 807 Other deposits 85 239 (64) 128 Repurchase agreements 29 445 34 305 (14) 31 472 Saving and transmission deposits 16 581 16 053 3 13 577 Corporate and Investment Banking AR 120 577 119 056 1 121 619 Head Office, Treasury and other operations (5 296) (3 129) 69 (4 170) Total deposits due to customers including repurchase agreements 1 469 424 1 402 188 5 1 441 246 Total deposits from banks including repurchase agreements 205 935 176 029 17 183 684 Total deposits including repurchase agreements 1 675 359 1 578 217 6 1624 930 Total debt funding 233 105 196 479 19 229 418 Commercial paper 6 929 7 097 (2) 5 873 Credit linked notes 41 097 36 355 13 40 354 Floating rate notes 71 086 55 980 27 74 960 Negotiable certificates of deposit 59 377 47 973 24 57 499 Other 2 161 1 913 13 2 692 Flac instruments 8 045 – 100 – Promissory notes – 198 (100) – Senior notes 44 399 46 961 (5) 48 037 Structured notes and bonds 11 2 >100 3 Total deposits and debt funding including repurchase agreements 1 908 464 1 774 696 8 1 854 348 Less: Repurchase agreements (159 238) (136 103) 17 (136 724) Total deposits and debt funding excluding repurchase agreements 1 749 226 1 638 593 7 1 717 624 Flac instruments are unsecured debt instruments issued to meet regulatory loss-absorbing capacity requirements. During the current reporting period, the Group issued two Flac note tranches with an aggregate nominal value of R7 991m. In the event of liquidation, winding-up or resolution of the issuer, claims of Flac noteholders rank in accordance with the Ranking Legislation, senior to Junior Securities and junior to Senior Creditors. The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 65
63 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 10. E quity and Capital-qualifying financial liabilities 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Authorised 950 000 000 (30 June 2025: 950 000 000; 31 December 2025: 950 000 000) ordinary shares of R2.00 each 1 900 1 900 – 1 900 Issued 894 376 907 (30 June 2025: 894 376 907; 31 December 2025: 894 376 907) ordinary shares of R2.00 1 789 1 789 – 1 789 66 281 564 (30 June 2025: 65 074 525; 31 December 2025: 65 597 829) treasury shares held by Group entities (134) (131) 2 (132) 1 655 1 658 – 1 657 Total Issued capital Share capital 1 655 1 658 – 1 657 Share premium 10 086 10 492 (4) 10 437 11 741 12 150 (3) 12 094 30 June 31 December 2026 2025 2025 Number of ordinary shares in issue (after deductions of treasury shares) Number of shares (million) Number of shares (million) Number of shares (million) Ordinary shares of R2.00 each 894.4 894.4 – 894.4 Treasury shares held by the Group (66.3) (65.0) 2 (65.6) 828.1 829.4 – 828.8
Page 66
64 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 10. E quity and Capital-qualifying financial liabilities 30 June 31 December 2026 2025 Change 2025 Capital-qualifying financial liabilities Rm Rm % Rm Subordinated callable notes issued by Absa Group Limited Interest rate Final Maturity date Three-month ZAR-JIBAR-SAFEX+2.10% 16 September 2032 1 916 1 916 – 1 916 Three-month JIBAR + 1.72% 26 August 2033 2 158 2 158 – 2 158 Three-month JIBAR + 1.72% 06 August 2034 1 000 1 000 – 1 000 Three-month JIBAR + 1.75% 21 September 2034 2 019 2 019 – 2 019 Three-month JIBAR + 1.70% 16 October 2034 500 500 – 500 Three-month JIBAR + 1.62% 12 October 2034 1 700 1 700 – 1 700 Three-month JIBAR + 1.58% 10 September 2035 2 500 – 100 2 500 ZAR-Zaronia + 1.48% 11 March 2037 2 403 – 100 – Foreign currency denominated notes USD 6.625% 08 June 2036 2 545 – 100 2 545 USD 7.375% n/a 5 003 – 100 – USD 6.375% n/a – 6 866 (100) 6 866 Other Accrued interest 81 87 (7) 113 Fair value adjustments (54) (259) (79) (106) Foreign exchange movements (174) 2 019 <(100) 1 351 21 597 18 006 20 22 562 Borrowed funds, which was renamed Subordinated debt in December 2025, has subsequently been renamed Capital-qualifying financial liabilities. Refer to the reporting changes overview in note 13 for additional information. At 30 June 2026, non-derivative financial liabilities of R11 849m (30 June 2025: R9 338m; 31 December 2025: R11 850m) have yet to transition to an alternate benchmark rate as part of the market-wide benchmark reform. NAV per share (cents) Jun 2023 Jun 2025 Dec 2023 20 04819 310 Dec 2024 Jun 2024 Dec 2022 17 44017 027 15 950 18 014 Dec 2025 20 802 Jun 2026 20 968 NAV per share (cents) 5% YoY % change (Jun 2026 vs Jun 2025) RoE, RoA and RoRWA (%) Jun 2024 14.0 Dec 2023 14.4 Jun 2023 15.7 Dec 2022 15.3 Dec 2024 14.8 Jun 2025 14.8 15.0 Dec 2025 Jun 2026 15.0 2.03 1.14 2.06 1.13 2.10 1.121.16 2.16 1.07 1.96 1.04 1.91 1.11 2.02 1.20 2.10 RoRWA RoA RoE
Page 67
65 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 11. Con tingencies, commitments and similar items 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Guarantees 77 905 60 255 29 69 702 Irrevocable debt facilities 192 263 155 988 23 172 275 Letters of credit 16 105 11 620 39 15 300 286 273 227 863 26 257 277 Authorised capital expenditure Contracted but not provided for 604 970 (38) 853 In June 2025, the Group misclassified consolidation adjustments relating to letters of credit. As a result, the previously reported amount of R13 797m has been restated to the value disclosed in the table above. Guarantees include performance guarantee contracts and financial guarantee contracts. This amount represents the maximum off-statement of financial position exposure. Financial guarantee contracts represent contracts where the Group undertakes to make specified payments to a counterparty, should the counterparty suffer a loss as a result of a specified debtor failing to make payment when due in accordance with the terms of a debt instrument. This amount represents the maximum off-statement of financial position exposure. Irrevocable facilities are commitments to extend credit where the Group does not have the right to terminate the facilities by written notice. Irrevocable debt facilities do not include other lending facilities which are revocable but for which an impairment provision has been raised (i.e. revolving products). The above table presents only those gross loan commitments that are contractually committed and are legally irrevocable. Commitments for authorised capital expenditure generally have fixed expiry dates. Since commitments may expire without being drawn upon, the total contract amounts do not necessarily represent future cash requirements. The Group has capital commitments in respect of intangible assets, property and equipment. Management is confident that future net revenues and funding will be sufficient to cover these commitments. Legal proceedings Legal matters The Group is engaged in various legal, competition and regulatory matters both in South Africa and a number of other jurisdictions. It is involved in legal proceedings which arise in the ordinary course of business from time to time, including (but not limited to) disputes in relation to contracts, securities, debt collection, consumer credit, fraud, trusts, client assets, competition, data protection, money laundering, employment, environmental and other statutory and common law issues. The Group is also subject to enquiries and examinations, requests for information, audits, investigations and legal and other proceedings by regulators, governmental and other public bodies in connection with (but not limited to) consumer protection measures, compliance with legislation and regulation, wholesale trading activity and other areas of banking and business activities in which the Group is or has been engaged. At the present time, no material adverse effect apart from provisions already raised for liabilities which are expected to materialise. However, in light of the uncertainties involved in such matters and the matters specifically described in this note, there can be no assurance that the outcome of a particular matter or matters will not be material to the Group’s results of operations or cash flow for a particular period, depending on, amongst other things, the amount of the loss resulting from the matter(s) and the amount of income otherwise reported for the reporting period. The Group has not disclosed the contingent liabilities associated with these matters either because they cannot reasonably be estimated or because such disclosure could be prejudicial to the outcome of the matter. Provision is made for all liabilities which are expected to materialise.
Page 68
66 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended Income taxes disclosed as contingencies The Group operates in multiple tax jurisdictions and, in the ordinary course of business, engages in transactions where the final tax determination may be subject to interpretation and uncertainty. In line with IAS 12 and IFRIC 23, the Group recognises tax liabilities for uncertain tax positions, based on objective estimates of the amount of tax that may be due, which is calculated, where relevant, with reference to expert advice received. Where an obligation is considered possible but not probable, the exposure is disclosed as a contingent liability. The Group recognises provisions for anticipated tax audit issues based on estimates of whether additional taxes will be due after considering external advice where appropriate. The carrying amount of any resulting provisions will be sensitive to the manner in which tax legal matters are expected to be resolved, and the stage of negotiations or discussion with the relevant tax authorities. There may be uncertainty around the final outcome of tax proceedings, which in many instances, will only be concluded after several years. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the current and deferred income tax assets and liabilities in the reporting period in which such determination is made. We manage risks in accordance with the Group’s Tax Risk Policy. Regulatory developments The scale of regulatory change remains challenging post the reforms introduced in response to the global financial crisis. These reforms resulted in significant tightening of regulation and changes to regulatory structures globally and locally, especially for companies that are deemed to be of systemic importance. Concurrently, there is continuing political and regulatory scrutiny in the operation of the banking and consumer credit industries globally and locally which, in some cases, is leading to increased regulation. The nature and impact of future changes in the legal framework, policies and regulatory action, especially in the areas of financial crime, banking and insurance regulation, cannot currently be fully predicted and are beyond the Group’s control. We are also awaiting policy positions to be taken by Regulators. Some of these are likely to have an impact on the Group’s customers, business lines, systems and earnings. The Group is continuously evaluating its programmes and controls in general relating to compliance with regulation and responding to the same. The Group undertakes monitoring, review and assurance activities, and has also adopted appropriate remedial and/or mitigating steps, where necessary or advisable, and has made disclosures on material findings as and when appropriate. The Group regards the relationship with Regulators as very important and manages such engagements on a continuous basis. 11. Con tingencies, commitments and similar items
Page 69
67 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 12. R oE decomposition Major drivers of RoE (%) Dec 2025 Jun 2026Dec 2022 Jun 2023 Dec 2023 Jun 2024 Dec 2024 Jun 2025 Net interest margin Banking non-interest yield Impairment losses on loan and advances Operating expenses (3.17) (1.03) (1.16) (3.15) (0.90) (3.12) 4.584.56 2.22 4.62 2.27 2.14 (0.82) (3.14) 4.53 2.10 (0.85) (3.00) 4.46 2.07 (1.07) (3.27) 4.68 2.15 (1.10) (3.16) 4.69 2.05 (0.93) (3.17) 4.63 2.10 30 June 31 December 2026 2025 2025 % % % Net interest margin on average interest- bearing assets 4.46 4.58 4.53 Less: Credit impairment charges/average interest-bearing assets 0.85 0.90 0.82 Equals: Net interest margin on average interest bearing assets – after credit impairment charges 3.61 3.68 3.71 Multiply: Average interest-bearing assets/average banking assets 80.31 82.29 82.19 Equals: Banking interest yield 2.90 3.02 3.05 Plus: Banking non-interest yield 2.07 2.14 2.10 Equals: Banking income yield 4.97 5.16 5.15 Less: Operating expenses/average banking assets 3.00 3.12 3.14 Equals: Net banking return 1.97 2.05 2.02 Less: Other 1 0.72 0.77 0.77 Equals: Banking return 1.26 1.28 1.25 Multiply: Average banking assets/total average assets 91.72 92.24 90.71 Equals: RoA 1.12 1.14 1.13 Multiply: Leverage 13.38 12.96 13.29 Equals: RoE 15.0 14.8 15.0 1 Other includes other impairments, indirect taxation, share of post-tax results of associates and joint ventures and taxation expense.
Page 70
68 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 13. R eporting changes overview 13.1 Chang e in presentation 13.1.1 Chang e in naming convention: “Borrowed funds” to “Capital-qualifying financial liabilities” During the current interim reporting period, the Group refined the naming conventions used for labelling borrowed funds in the financial statements to better reflect its nature and composition. In December 2025, the line item Borrowed funds was renamed Subordinated debt to enhance clarity and align with market practice. Following the issuance of Flac instruments in the current period, which are contractually subordinated upon liquidation and are presented within Deposits and debt funding, the line item formerly presented as Borrowed funds (and subsequently as Subordinated debt) has been renamed 'Capital-qualifying financial liabilities’ to more accurately reflect the nature and composition of the instruments included therein. This represents a change in presentation and terminology in accordance with IAS 1 Presentation of Financial Statements and does not constitute a change in accounting policy. The amendment is limited to the description of the line item and has no impact on the recognition, measurement or classification of the underlying financial liabilities, nor on the amounts reported in the current or prior reporting periods. Comparative information has been relabelled to ensure consistency of presentation. 13.1.2 Chang e in presentation: Deposits and debt funding During the second half of the 2025 financial year, the Group revised the presentation of its funding-related liabilities by combining the previously separate line items and notes for deposits and debt securities in issue into a single line item on the statement of financial position. This change has been adopted to be comparable to peers and aligns better with the purpose for which the instruments were issued. This represents a change in presentation only and does not affect the recognition, measurement, or classification of the underlying funding liabilities, and therefore has no impact on profit or loss, other comprehensive income, equity, or cash flows. In accordance with IAS 1 Presentation of Financial Statements, the Group has applied this change retrospectively to ensure consistency of presentation and comparability of information between periods. Statement of financial position 30 June 2025 As previously reported Change in presentation Restated Rm Rm Rm Liabilities Deposits 1 578 217 (1 578 217) – Debt securities in issue 196 479 (196 479) – Deposits and debt funding – 1 774 696 1 774 696 30 June 2025 Statement of cash flows note As previously reported Change in presentation Restated Rm Rm Rm Operating liabilities Other liabilities 28 745 (14 813) 13 932 Deposits 84 638 (84 638) – Deposits and debt funding – 99 451 99 451 Net increase in operating liabilities 113 383 – 113 383
Page 71
69 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management 13. R eporting changes overview Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended 13.2 R eportable segment changes and business portfolio changes New operating model In 2025, the Group announced a new pan-African operating model as the next phase in the evolution of its organisational design. Effective from 1 January 2026, the model represents a significant milestone in strengthening the Group's organisational structure and operating effectiveness. The revised model is founded on two primary dimensions, geography and customer, and is intended to enhance strategic focus, strengthen management accountability, and improve client outcomes through greater operational efficiency and the increased utilisation of technology and data. Under the new operating model, the Group's activities are reported through three pan-African business segments: Personal and Private Banking (PPB), Business Banking (BB), and Corporate and Investment Banking (CIB). As part of this change, the former Africa Regions – Personal and Private Banking & Business Banking segment (June 2025: Absa Regional Operations – Retail Business Banking) has been integrated into the PPB and BB segments. Comparative information has been restated to reflect the revised segmental reporting structure. The effect of the reorganisation on the Group's reportable segments is presented in the ‘Reportable segment change’ column in the tables below. Wholesale operating model change During the second half of the 2025 financial year, the Group’s wholesale business transitioned to a customer-centric operating model, with customer profit or loss adopted as the primary performance measure. This change is intended to enhance solution delivery, sales effectiveness and overall customer experience, while supporting end-to-end product accountability and profitability. Accordingly, product revenue, costs, impairments and capital are now allocated to the segment responsible for managing the customer relationship. The implementation of this model resulted in the reallocation of revenue and costs between the Corporate and Investment Banking (CIB) and Business Banking (BB) segments, necessitating the restatement of previously reported June 2025 comparative information. As this represents an internal reallocation of financial results, the Group’s reportable operating segments remain unchanged. The impact of the reallocation is reflected in the ‘Movement in wholesale exposures’ column in the tables below. Reallocation of income, expenses, and intergroup balances The Group implemented enhancements to its Funds Transfer Pricing (FTP) and transfer pricing methodologies, including refinements to funding and cost allocation approaches. In addition, merchant acquiring activities were reallocated from Personal and Private Banking (PPB) to Business Banking (BB) across various markets, resulting in the reallocation of related income and expenses. Further adjustments arose from the reassignment of central support, staff-related and Treasury Execution Services costs to the segments accountable for the underlying activities. These changes also resulted in corresponding adjustments to intergroup asset and liability balances. The impact of these items is reflected in the ‘Business portfolio changes’ column in the tables below.
Page 72
70 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management 13. R eporting changes overview 13.2 Reportable segment changes and business portfolio changes continued Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended Statement of comprehensive income 30 June 2025 As previously reported Reportable segment change Business portfolio changes Movement in wholesale exposures Restated Rm Rm Rm Rm Rm Total income Personal and Private Banking 21 784 6 982 (647) – 28 119 Business Banking 7 528 2 660 (26) (74) 10 088 Absa Regional Operations – Retail and Business Banking 9 642 (9 642) – – – Corporate and Investment Banking 17 578 – (13) 74 17 639 Head Office, Treasury and other operations (45) – 686 – 641 Profit for the reporting period Personal and Private Banking 3 440 988 (219) – 4 209 Business Banking 1 851 513 390 111 2 865 Absa Regional Operations – Retail and Business Banking 1 501 (1 501) – – – Corporate and Investment Banking 7 127 – (228) (111) 6 788 Head Office, Treasury and other operations (976) – 57 – (919) Headline earnings Personal and Private Banking 3 168 678 (195) – 3 651 Business Banking 1 712 414 366 111 2 603 Absa Regional Operations – Retail and Business Banking 1 092 (1 092) – – – Corporate and Investment Banking 6 440 – (220) (111) 6 109 Head Office, Treasury and other operations (538) – 49 – (489) Statement of financial position 30 June 2025 As previously reported Reportable segment change Business portfolio changes Movement in wholesale exposures Restated Rm Rm Rm Rm Rm Total assets Personal and Private Banking 984 185 119 612 423 – 1 104 220 Business Banking 314 798 50 800 2 921 (9) 368 510 Absa Regional Operations – Retail and Business Banking 170 412 (170 412) – – – Corporate and Investment Banking 1 355 090 – 116 539 9 1 471 638 Head Office, Treasury and other operations (664 726) – (119 883) – (784 609) Total liabilities Personal and Private Banking 972 123 119 449 976 – 1 092 548 Business Banking 311 915 50 947 2 082 16 364 960 Absa Regional Operations – Retail and Business Banking 170 396 (170 396) – – – Corporate and Investment Banking 1 336 935 – 117 422 (16) 1 454 341 Head Office, Treasury and other operations (819 303) – (120 480) – (939 783)
Page 73
71 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management 13. R eporting changes overview 13.2 Reportable segment changes and business portfolio changes continued Performance indicators and condensed notes to the consolidated financial statements for the interim reporting period ended Statement of comprehensive income 31 December 2025 As previously reported Reportable segment change Business portfolio changes Restated Rm Rm Rm Rm Total income Personal and Private Banking 43 721 14 014 (53) 57 682 Business Banking 15 282 5 334 (12) 20 604 Africa Regions-Personal and Private Banking & Business Banking 19 348 (19 348) – – Corporate and Investment Banking 36 699 – (18) 36 681 Head Office, Treasury and other operations 647 – 83 730 Profit for the reporting period Personal and Private Banking 7 660 2 301 (302) 9 659 Business Banking 4 081 1 068 643 5 792 Africa Regions-Personal and Private Banking & Business Banking 3 369 (3 369) – – Corporate and Investment Banking 13 960 – (315) 13 645 Head Office, Treasury and other operations (3 468) – (26) (3 494) Headline earnings Personal and Private Banking 7 535 1 676 (339) 8 872 Business Banking 3 865 843 646 5 354 Africa Regions-Personal and Private Banking & Business Banking 2 519 (2 519) – – Corporate and Investment Banking 13 008 – (318) 12 690 Head Office, Treasury and other operations (2 165) – 11 (2 154) Statement of financial position 31 December 2025 As previously reported Reportable segment change Business portfolio changes Restated Rm Rm Rm Rm Total assets Personal and Private Banking 1 006 000 118 534 960 1 125 494 Business Banking 333 837 51 484 2 017 387 338 Africa Regions-Personal and Private Banking & Business Banking 170 018 (170 018) – – Corporate and Investment Banking 1 399 512 – 167 089 1 566 601 Head Office, Treasury and other operations (669 888) – (170 066) (839 954) Total liabilities Personal and Private Banking 990 214 117 429 1 596 1 109 239 Business Banking 329 051 51 024 932 381 007 Africa Regions-Personal and Private Banking & Business Banking 168 453 (168 453) – – Corporate and Investment Banking 1 376 954 – 168 046 1 545 000 Head Office, Treasury and other operations (816 602) – (170 574) (987 176)
Page 74
72 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management This page has been left blank intentionally
Page 75
73 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Segment performance 73Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 74 Segment performance overview 76 Segment report per market segment 78 Segment report per geographical split 80 Personal and Private Banking 108 Business Banking 118 Corporate and Investment Banking 128 Head Office, Treasury and other operations
Page 76
74 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Segment performance overview for the interim reporting period ended Segment reporting structure During the reporting period, the Group introduced a new pan-African operating model, marking a significant milestone in the continued evolution of its organisational design. This evolution will be focused on streamlining operations across the region and harnessing technology and data to deliver improved outcomes for clients. Under the new operating model, the Group now delivers its services through three pan-African business segments: Personal and Private Banking (PPB), Business Banking (BB), and Corporate and Investment Banking (CIB), with the former Africa Regions – Personal and Private Banking & Business Banking segment strategically integrated into PPB and BB. The Group has identified its operating model with “geography” and “customer” as primary dimensions, creating a platform for increased focus and dedicated management capacity. The reportable segments in the following table are disclosed based on how the Group’s businesses were managed and reported to the Group Executive Committee, regarded as the Chief Operating Decision Maker, at the reporting date. Personal and Private Banking Business Banking Corporate and Investment Banking Head Office, Treasury and other operations PPB SA Transactions and Deposits • Transactional • Savings and Investments • Advice and Investments • Private Wealth Banking Unsecured Lending • Card • Personal Loans Home Loans Vehicle and Asset Finance Insurance SA • Life insurance • Non-Life insurance PPB AR • Banking • Insurance AR BB SA • Transactional and Deposits • Payments • Lending BB AR • Transactional and Deposits • Payments • Lending Transactional Banking • Transactional Banking SA • Transactional Banking AR Investment Banking • Investment Banking SA • Investment Banking AR Global Markets • Global Markets SA • Global Markets AR • Group Treasury (SA & AR) • Group Central Functions • Consolidation Centre • Investment Management (Terminating lines) • B-BBEE Transaction Absa Group Limited
Page 77
75 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Segment performance overview for the interim reporting period ended Performance per market segment Headline earnings per market segment, excluding Head Office, Treasury and other operations (%) Jun 2026 47 32 Dec 2025 47 20 33 Personal and Private Banking Business Banking Corporate and Investment Banking 21 Jun 2025 49 30 21 30 June 31 December 2026 2025 Change 2025 Headline earnings Rm Rm % Rm Personal and Private Banking 4 106 3 651 12 8 872 Business Banking 2 743 2 603 5 5 354 Corporate and Investment Banking 6 192 6 109 1 12 690 Head Office, Treasury and other operations (234) (489) (52) (2 154) 12 807 11 874 8 24 762 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Income per market segment, excluding Head Office, Treasury and other operations (%) Jun 2026 31 18 51 Dec 2025 32 18 50 Jun 2025 32 18 50 Personal and Private Banking Business Banking Corporate and Investment Banking 30 June 31 December 2026 2025 Change 2025 Income Rm Rm % Rm Personal and Private Banking 29 314 28 119 4 57 682 Business Banking 10 574 10 088 5 20 604 Corporate and Investment Banking 18 238 17 639 3 36 681 Head Office, Treasury and other operations 665 641 4 730 58 791 56 487 4 115 697 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 78
76 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking Head Office, Treasury and other operations 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 10 890 10 826 1 2 22 129 374 463 (19) (18) 615 7 348 6 813 8 9 14 552 291 178 63 70 115 18 238 17 639 3 5 36 681 665 641 4 8 730 (577) (499) 16 29 (1 269) 50 (41) >100 <(100) (480) (8 735) (8 356) 5 6 (17 223) (406) (552) (26) (25) (1 835) (240) (220) 9 11 (1 063) (672) (973) (31) (37) (2 531) 8 686 8 564 1 2 17 126 (363) (925) (61) (63) (4 116) (1 897) (1 776) 7 7 (3 481) (109) 6 <(100) <(100) 622 6 789 6 788 0 1 13 645 (472) (919) (49) (51) (3 494) 6 192 6 110 1 2 12 279 (454) (1 014) (55) (57) (3 595) 376 374 1 12 770 (23) 88 <(100) <(100) 91 – 81 (100) (100) 145 – 2 (100) (100) 3 221 223 (1) (1) 451 5 5 – 2 7 6 789 6 788 0 1 13 645 (472) (919) (49) (51) (3 494) 6 192 6 109 1 2 12 690 (234) (489) (52) (50) (2 154) 2.19 2.37 2.33 n/a n/a n/a 0.17 0.17 0.21 n/a n/a n/a 40.3 38.6 39.7 n/a n/a n/a 47.9 47.4 47.0 n/a n/a n/a 676 865 614 700 10 12 647 042 20 513 37 758 (46) (42) 20 328 611 968 561 982 9 10 585 627 4 257 5 071 (16) (16) 4 405 64 897 52 718 23 26 61 415 16 256 32 687 (50) (47) 15 923 73 851 63 710 16 17 70 331 141 042 163 953 (14) (10) 156 085 855 776 793 228 8 8 849 228 (1 010 298) (986 320) 2 2 (1 016 367) 1 606 492 1 471 638 9 10 1 566 601 (848 743) (784 609) 8 7 (839 954) 1 020 792 914 953 12 13 988 765 102 655 95 818 7 10 89 372 841 254 766 660 10 11 808 519 49 088 47 748 3 9 40 200 689 709 641 518 8 9 669 212 (5 296) (3 129) 69 27 (4 170) 151 545 125 142 21 22 139 307 54 384 50 877 7 11 44 370 179 538 148 293 21 21 180 246 53 567 48 070 11 12 49 172 568 688 539 388 5 5 556 235 (1 113 993) (1 035 601) 8 7 (1 076 548) 1 589 480 1 454 341 9 10 1 545 000 (1 011 338) (939 783) 8 7 (987 176) 2.39 2.57 2.55 n/a n/a n/a 0.78 0.87 0.84 n/a n/a n/a 19.2 20.6 20.6 n/a n/a n/a Personal and Private Banking Business Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 Statement of comprehensive income (Rm) Net interest income 18 501 17 706 4 6 36 230 7 600 7 312 4 5 14 967 Non-interest income 10 813 10 413 4 5 21 452 2 974 2 776 7 8 5 637 Total income 29 314 28 119 4 6 57 682 10 574 10 088 5 6 20 604 Credit impairment charges (5 998) (6 088) (1) (1) (10 685) (574) (545) 5 8 (976) Operating expenses (16 396) (15 674) 5 6 (31 903) (5 856) (5 462) 7 9 (11 274) Other expenses (471) (509) (7) (7) (1 532) (75) (95) (21) (20) (242) Operating profit before income tax 6 449 5 848 10 13 13 562 4 069 3 986 2 3 8 112 Tax expenses (1 707) (1 639) 4 7 (3 903) (1 128) (1 121) 1 1 (2 320) Profit for the reporting period 4 742 4 209 13 16 9 659 2 941 2 865 3 4 5 792 Profit attributable to: Ordinary equity holders 4 098 3 533 16 18 8 221 2 743 2 602 5 6 5 309 Non-controlling interest – ordinary shares 469 395 19 30 911 110 124 (11) (1) 223 Non-controlling interest – preference shares – 75 (100) (100) 130 – 37 (100) (100) 64 Other equity: Additional Tier 1 175 206 (15) (15) 397 88 102 (14) (14) 196 4 742 4 209 13 16 9 659 2 941 2 865 3 4 5 792 Headline earnings 4 106 3 651 12 15 8 872 2 743 2 603 5 6 5 354 Operating performance (%) Net interest margin on average interest-bearing assets 3.72 3.64 3.66 4.18 4.26 4.20 Credit loss ratio 1.87 1.96 1.70 0.63 0.64 0.56 Non-interest income as % of income 36.9 37.0 37.2 28.1 27.5 27.4 Cost-to-income ratio 55.9 55.7 55.3 55.4 54.1 54.7 Statement of financial position (Rm) Loans and advances 610 860 589 137 4 5 596 598 185 232 170 552 9 10 174 591 Loans and advances to customers 603 179 582 170 4 5 589 480 185 124 169 922 9 10 174 217 Loans and advances to banks 7 681 6 967 10 11 7 118 108 630 (83) (83) 374 Investment securities 34 386 34 459 (0) 0 33 882 8 718 6 470 35 35 8 232 Other assets 491 328 480 624 2 3 495 014 194 113 191 488 1 2 204 515 Total assets 1 136 574 1 104 220 3 4 1 125 494 388 063 368 510 5 6 387 338 Deposits and debt funding 471 260 464 774 1 3 467 393 313 757 299 151 5 6 308 818 Deposits 471 260 464 658 1 3 467 393 313 757 299 151 5 6 308 818 Deposits due to customers 471 260 464 658 1 3 467 393 313 751 299 141 5 6 308 811 Deposits due to banks – – – – – 6 10 (40) (31) 7 Debt funding – 116 (100) (100) – – – – – – Other liabilities 653 594 627 774 4 4 641 846 69 789 65 809 6 6 72 189 Total liabilities 1 124 854 1 092 548 3 4 1 109 239 383 546 364 960 5 6 381 007 Financial performance (%) RoRWA 2.23 2.03 2.44 3.01 2.78 2.89 RoA 0.76 0.70 0.83 1.45 1.48 1.46 RoE 15.2 13.9 16.7 24.6 23.1 24.0 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Segment report per market segment for the interim reporting period ended
Page 79
77 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Segment report per market segment for the interim reporting period ended Corporate and Investment Banking Head Office, Treasury and other operations 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 10 890 10 826 1 2 22 129 374 463 (19) (18) 615 7 348 6 813 8 9 14 552 291 178 63 70 115 18 238 17 639 3 5 36 681 665 641 4 8 730 (577) (499) 16 29 (1 269) 50 (41) >100 <(100) (480) (8 735) (8 356) 5 6 (17 223) (406) (552) (26) (25) (1 835) (240) (220) 9 11 (1 063) (672) (973) (31) (37) (2 531) 8 686 8 564 1 2 17 126 (363) (925) (61) (63) (4 116) (1 897) (1 776) 7 7 (3 481) (109) 6 <(100) <(100) 622 6 789 6 788 0 1 13 645 (472) (919) (49) (51) (3 494) 6 192 6 110 1 2 12 279 (454) (1 014) (55) (57) (3 595) 376 374 1 12 770 (23) 88 <(100) <(100) 91 – 81 (100) (100) 145 – 2 (100) (100) 3 221 223 (1) (1) 451 5 5 – 2 7 6 789 6 788 0 1 13 645 (472) (919) (49) (51) (3 494) 6 192 6 109 1 2 12 690 (234) (489) (52) (50) (2 154) 2.19 2.37 2.33 n/a n/a n/a 0.17 0.17 0.21 n/a n/a n/a 40.3 38.6 39.7 n/a n/a n/a 47.9 47.4 47.0 n/a n/a n/a 676 865 614 700 10 12 647 042 20 513 37 758 (46) (42) 20 328 611 968 561 982 9 10 585 627 4 257 5 071 (16) (16) 4 405 64 897 52 718 23 26 61 415 16 256 32 687 (50) (47) 15 923 73 851 63 710 16 17 70 331 141 042 163 953 (14) (10) 156 085 855 776 793 228 8 8 849 228 (1 010 298) (986 320) 2 2 (1 016 367) 1 606 492 1 471 638 9 10 1 566 601 (848 743) (784 609) 8 7 (839 954) 1 020 792 914 953 12 13 988 765 102 655 95 818 7 10 89 372 841 254 766 660 10 11 808 519 49 088 47 748 3 9 40 200 689 709 641 518 8 9 669 212 (5 296) (3 129) 69 27 (4 170) 151 545 125 142 21 22 139 307 54 384 50 877 7 11 44 370 179 538 148 293 21 21 180 246 53 567 48 070 11 12 49 172 568 688 539 388 5 5 556 235 (1 113 993) (1 035 601) 8 7 (1 076 548) 1 589 480 1 454 341 9 10 1 545 000 (1 011 338) (939 783) 8 7 (987 176) 2.39 2.57 2.55 n/a n/a n/a 0.78 0.87 0.84 n/a n/a n/a 19.2 20.6 20.6 n/a n/a n/a Personal and Private Banking Business Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 Statement of comprehensive income (Rm) Net interest income 18 501 17 706 4 6 36 230 7 600 7 312 4 5 14 967 Non-interest income 10 813 10 413 4 5 21 452 2 974 2 776 7 8 5 637 Total income 29 314 28 119 4 6 57 682 10 574 10 088 5 6 20 604 Credit impairment charges (5 998) (6 088) (1) (1) (10 685) (574) (545) 5 8 (976) Operating expenses (16 396) (15 674) 5 6 (31 903) (5 856) (5 462) 7 9 (11 274) Other expenses (471) (509) (7) (7) (1 532) (75) (95) (21) (20) (242) Operating profit before income tax 6 449 5 848 10 13 13 562 4 069 3 986 2 3 8 112 Tax expenses (1 707) (1 639) 4 7 (3 903) (1 128) (1 121) 1 1 (2 320) Profit for the reporting period 4 742 4 209 13 16 9 659 2 941 2 865 3 4 5 792 Profit attributable to: Ordinary equity holders 4 098 3 533 16 18 8 221 2 743 2 602 5 6 5 309 Non-controlling interest – ordinary shares 469 395 19 30 911 110 124 (11) (1) 223 Non-controlling interest – preference shares – 75 (100) (100) 130 – 37 (100) (100) 64 Other equity: Additional Tier 1 175 206 (15) (15) 397 88 102 (14) (14) 196 4 742 4 209 13 16 9 659 2 941 2 865 3 4 5 792 Headline earnings 4 106 3 651 12 15 8 872 2 743 2 603 5 6 5 354 Operating performance (%) Net interest margin on average interest-bearing assets 3.72 3.64 3.66 4.18 4.26 4.20 Credit loss ratio 1.87 1.96 1.70 0.63 0.64 0.56 Non-interest income as % of income 36.9 37.0 37.2 28.1 27.5 27.4 Cost-to-income ratio 55.9 55.7 55.3 55.4 54.1 54.7 Statement of financial position (Rm) Loans and advances 610 860 589 137 4 5 596 598 185 232 170 552 9 10 174 591 Loans and advances to customers 603 179 582 170 4 5 589 480 185 124 169 922 9 10 174 217 Loans and advances to banks 7 681 6 967 10 11 7 118 108 630 (83) (83) 374 Investment securities 34 386 34 459 (0) 0 33 882 8 718 6 470 35 35 8 232 Other assets 491 328 480 624 2 3 495 014 194 113 191 488 1 2 204 515 Total assets 1 136 574 1 104 220 3 4 1 125 494 388 063 368 510 5 6 387 338 Deposits and debt funding 471 260 464 774 1 3 467 393 313 757 299 151 5 6 308 818 Deposits 471 260 464 658 1 3 467 393 313 757 299 151 5 6 308 818 Deposits due to customers 471 260 464 658 1 3 467 393 313 751 299 141 5 6 308 811 Deposits due to banks – – – – – 6 10 (40) (31) 7 Debt funding – 116 (100) (100) – – – – – – Other liabilities 653 594 627 774 4 4 641 846 69 789 65 809 6 6 72 189 Total liabilities 1 124 854 1 092 548 3 4 1 109 239 383 546 364 960 5 6 381 007 Financial performance (%) RoRWA 2.23 2.03 2.44 3.01 2.78 2.89 RoA 0.76 0.70 0.83 1.45 1.48 1.46 RoE 15.2 13.9 16.7 24.6 23.1 24.0 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Group 30 June 31 December Change CCY 2026 2025 % % 2025 37 365 36 307 3 5 73 941 21 426 20 180 6 7 41 756 58 791 56 487 4 6 115 697 (7 099) (7 173) (1) 1 (13 410) (31 393) (30 044) 4 6 (62 235) (1 458) (1 797) (19) (22) (5 368) 18 841 17 473 8 10 34 684 (4 841) (4 530) 7 8 (9 082) 14 000 12 943 8 10 25 602 12 579 11 231 12 14 22 214 932 981 (5) 5 1 995 – 195 (100) (100) 342 489 536 (9) (9) 1 051 14 000 12 943 8 10 25 602 12 807 11 874 8 9 24 762 4.46 4.58 4.53 0.94 1.00 0.88 36.4 35.7 36.1 53.4 53.2 53.8 1 493 470 1 412 147 6 7 1 438 559 1 404 528 1 319 145 6 8 1 353 729 88 942 93 002 (4) (1) 84 830 257 997 268 592 (4) (1) 268 530 530 919 479 020 11 12 532 390 2 282 386 2 159 759 6 7 2 239 479 1 908 464 1 774 696 8 9 1 854 348 1 675 359 1 578 217 6 8 1 624 930 1 469 424 1 402 188 5 6 1 441 246 205 935 176 029 17 19 183 684 233 105 196 479 19 19 229 418 178 078 197 370 (10) (8) 193 722 2 086 542 1 972 066 6 7 2 048 070 2.10 2.03 2.06 1.12 1.14 1.13 15.0 14.8 15.0
Page 80
78 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Segment report per geographical split for the interim reporting period ended South Africa 30 June 31 December Change 2026 2025 % 2025 Statement of comprehensive income (Rm) Net interest income 25 567 23 929 7 49 208 Non-interest income 15 721 14 431 9 30 304 Total income 41 288 38 360 8 79 512 Credit impairment charges (6 193) (6 157) 1 (11 251) Operating expenses (21 852) (20 970) 4 (43 828) Other expenses (1 003) ( 701) 43 (3 779) Operating profit before income tax 12 240 10 532 16 20 654 Tax expenses (2 714) (2 029) 34 (4 035) Profit for the reporting period 9 526 8 503 12 16 619 Profit attributable to: Ordinary equity holders 8 942 7 734 16 15 071 Non-controlling interest – ordinary shares 100 45 >100 166 Non-controlling interest – preference shares – 193 (100) 339 Additional Tier 1 484 531 (9) 1 043 9 526 8 503 12 16 619 Headline earnings 9 188 7 838 17 17 014 Operating performance (%) Net interest margin on average interest-bearing assets 3.78 3.77 3.79 Credit loss ratio 0.96 1.03 0.91 Non-interest income as % of income 38.1 37.6 38.1 Cost-to-income ratio 52.9 54.7 55.1 Statement of financial position (Rm) Loans and advances 1 268 360 1 192 030 6 1 223 384 Loans and advances to customers 1 214 619 1 137 416 7 1 167 810 Loans and advances to banks 53 741 54 614 (2) 55 574 Investment securities 175 016 172 438 1 176 182 Other assets 434 297 399 787 9 442 397 Total assets 1 877 673 1 764 255 6 1 841 963 Deposits and debt funding 1 602 098 1 467 007 9 1 542 254 Deposits 1 370 114 1 271 762 8 1 313 972 Deposits due to customers 1 191 391 1 123 451 6 1 162 302 Deposits due to banks 178 723 148 311 21 151 670 Debt funding 231 984 195 245 19 228 282 Other liabilities 119 544 148 225 (19) 146 993 Total liabilities 1 721 642 1 615 232 7 1 689 247 Financial performance (%) RoRWA 2.25 2.09 2.19 RoA 0.98 0.92 0.96 RoE 15.9 14.4 15.1 The market segment split has been restated, which has impacted the geographical split. Refer to the reporting changes overview in note 13. Africa Regions Group 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 11 798 12 378 (5) (0) 24 733 37 365 36 307 3 5 73 941 5 705 5 749 (1) 3 11 452 21 426 20 180 6 7 41 756 17 503 18 127 (3) 1 36 185 58 791 56 487 4 6 115 697 (906) (1 016) (11) 3 (2 159) (7 099) (7 173) (1) 1 (13 410) (9 541) (9 074) 5 10 (18 407) (31 393) (30 044) 4 6 (62 235) (455) (1 096) (58) (61) (1 589) (1 458) (1 797) (19) (22) (5 368) 6 601 6 941 (5) 0 14 030 18 841 17 473 8 10 34 684 (2 127) (2 501) (15) (12) (5 047) (4 841) (4 530) 7 8 (9 082) 4 474 4 440 1 7 8 983 14 000 12 943 8 10 25 602 3 637 3 497 4 9 7 143 12 579 11 231 12 14 22 214 832 936 (11) (1) 1 829 932 981 (5) 5 1 995 – 2 (100) (100) 3 – 195 (100) (100) 342 5 5 – 2 8 489 536 (9) (9) 1 051 4 474 4 440 1 7 8 983 14 000 12 943 8 10 25 602 3 619 4 036 (10) (8) 7 748 12 807 11 874 8 9 24 762 7.35 7.82 7.40 4.46 4.58 4.53 0.82 0.86 0.73 0.94 1.00 0.88 32.6 31.7 31.6 36.4 35.7 36.1 54.5 50.1 50.9 53.4 53.2 53.8 225 110 220 117 2 11 215 175 1 493 470 1 412 147 6 7 1 438 559 189 909 181 729 5 14 185 919 1 404 528 1 319 145 6 8 1 353 729 35 201 38 388 (8) 0 29 256 88 942 93 002 (4) (1) 84 830 82 981 96 154 (14) (6) 92 348 257 997 268 592 (4) (1) 268 530 96 622 79 233 22 32 89 993 530 919 479 020 11 12 532 390 404 713 395 504 2 11 397 516 2 282 386 2 159 759 6 7 2 239 479 306 366 307 689 (0) 8 312 094 1 908 464 1 774 696 8 9 1 854 348 305 245 306 455 (0) 8 310 958 1 675 359 1 578 217 6 8 1 624 930 278 033 278 737 (0) 8 278 944 1 469 424 1 402 188 5 6 1 441 246 27 212 27 718 (2) 8 32 014 205 935 176 029 17 19 183 684 1 121 1 234 (9) 1 1 136 233 105 196 479 19 19 229 418 58 534 49 145 19 27 46 729 178 078 197 370 (10) (8) 193 722 364 900 356 834 2 11 358 823 2 086 542 1 972 066 6 7 2 048 070 1.79 1.91 1.83 2.10 2.03 2.06 1.77 2.06 1.84 1.12 1.14 1.13 15.6 16.9 16.2 15.0 14.8 15.0
Page 81
79 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Segment report per geographical split for the interim reporting period ended South Africa 30 June 31 December Change 2026 2025 % 2025 Statement of comprehensive income (Rm) Net interest income 25 567 23 929 7 49 208 Non-interest income 15 721 14 431 9 30 304 Total income 41 288 38 360 8 79 512 Credit impairment charges (6 193) (6 157) 1 (11 251) Operating expenses (21 852) (20 970) 4 (43 828) Other expenses (1 003) ( 701) 43 (3 779) Operating profit before income tax 12 240 10 532 16 20 654 Tax expenses (2 714) (2 029) 34 (4 035) Profit for the reporting period 9 526 8 503 12 16 619 Profit attributable to: Ordinary equity holders 8 942 7 734 16 15 071 Non-controlling interest – ordinary shares 100 45 >100 166 Non-controlling interest – preference shares – 193 (100) 339 Additional Tier 1 484 531 (9) 1 043 9 526 8 503 12 16 619 Headline earnings 9 188 7 838 17 17 014 Operating performance (%) Net interest margin on average interest-bearing assets 3.78 3.77 3.79 Credit loss ratio 0.96 1.03 0.91 Non-interest income as % of income 38.1 37.6 38.1 Cost-to-income ratio 52.9 54.7 55.1 Statement of financial position (Rm) Loans and advances 1 268 360 1 192 030 6 1 223 384 Loans and advances to customers 1 214 619 1 137 416 7 1 167 810 Loans and advances to banks 53 741 54 614 (2) 55 574 Investment securities 175 016 172 438 1 176 182 Other assets 434 297 399 787 9 442 397 Total assets 1 877 673 1 764 255 6 1 841 963 Deposits and debt funding 1 602 098 1 467 007 9 1 542 254 Deposits 1 370 114 1 271 762 8 1 313 972 Deposits due to customers 1 191 391 1 123 451 6 1 162 302 Deposits due to banks 178 723 148 311 21 151 670 Debt funding 231 984 195 245 19 228 282 Other liabilities 119 544 148 225 (19) 146 993 Total liabilities 1 721 642 1 615 232 7 1 689 247 Financial performance (%) RoRWA 2.25 2.09 2.19 RoA 0.98 0.92 0.96 RoE 15.9 14.4 15.1 The market segment split has been restated, which has impacted the geographical split. Refer to the reporting changes overview in note 13. Africa Regions Group 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 11 798 12 378 (5) (0) 24 733 37 365 36 307 3 5 73 941 5 705 5 749 (1) 3 11 452 21 426 20 180 6 7 41 756 17 503 18 127 (3) 1 36 185 58 791 56 487 4 6 115 697 (906) (1 016) (11) 3 (2 159) (7 099) (7 173) (1) 1 (13 410) (9 541) (9 074) 5 10 (18 407) (31 393) (30 044) 4 6 (62 235) (455) (1 096) (58) (61) (1 589) (1 458) (1 797) (19) (22) (5 368) 6 601 6 941 (5) 0 14 030 18 841 17 473 8 10 34 684 (2 127) (2 501) (15) (12) (5 047) (4 841) (4 530) 7 8 (9 082) 4 474 4 440 1 7 8 983 14 000 12 943 8 10 25 602 3 637 3 497 4 9 7 143 12 579 11 231 12 14 22 214 832 936 (11) (1) 1 829 932 981 (5) 5 1 995 – 2 (100) (100) 3 – 195 (100) (100) 342 5 5 – 2 8 489 536 (9) (9) 1 051 4 474 4 440 1 7 8 983 14 000 12 943 8 10 25 602 3 619 4 036 (10) (8) 7 748 12 807 11 874 8 9 24 762 7.35 7.82 7.40 4.46 4.58 4.53 0.82 0.86 0.73 0.94 1.00 0.88 32.6 31.7 31.6 36.4 35.7 36.1 54.5 50.1 50.9 53.4 53.2 53.8 225 110 220 117 2 11 215 175 1 493 470 1 412 147 6 7 1 438 559 189 909 181 729 5 14 185 919 1 404 528 1 319 145 6 8 1 353 729 35 201 38 388 (8) 0 29 256 88 942 93 002 (4) (1) 84 830 82 981 96 154 (14) (6) 92 348 257 997 268 592 (4) (1) 268 530 96 622 79 233 22 32 89 993 530 919 479 020 11 12 532 390 404 713 395 504 2 11 397 516 2 282 386 2 159 759 6 7 2 239 479 306 366 307 689 (0) 8 312 094 1 908 464 1 774 696 8 9 1 854 348 305 245 306 455 (0) 8 310 958 1 675 359 1 578 217 6 8 1 624 930 278 033 278 737 (0) 8 278 944 1 469 424 1 402 188 5 6 1 441 246 27 212 27 718 (2) 8 32 014 205 935 176 029 17 19 183 684 1 121 1 234 (9) 1 1 136 233 105 196 479 19 19 229 418 58 534 49 145 19 27 46 729 178 078 197 370 (10) (8) 193 722 364 900 356 834 2 11 358 823 2 086 542 1 972 066 6 7 2 048 070 1.79 1.91 1.83 2.10 2.03 2.06 1.77 2.06 1.84 1.12 1.14 1.13 15.6 16.9 16.2 15.0 14.8 15.0
Page 82
80 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended PPB delivered headline earnings growth of 12% to R4 106m (30 June 2025: R3 651m; up 15% in CCY), supported by a 4% increase in pre-provision profit (up 6% in CCY) and a 1% decrease in credit impairment charges (down 1% in CCY). Key performance highlights for the period include the following: Active customers grew 5%, driven by higher-income South Africa segment acquisitions and continued customer growth in Africa Regions. South Africa grew 2%, led by affluent customers (up 13%), while AR grew 12% through targeted acquisitions, customer activation and enhanced affluent propositions. Digital adoption increased, with the active digital customer base growing 14% year-on-year. South Africa grew by 10% and AR grew by 21%, driven by digital onboarding improvements, enhanced app capabilities, targeted campaigns and ecosystem partnerships. Net interest income increased by 4% to R18 501m (30 June 2025: R17 706m; up 6% in CCY), driven by balance sheet growth across South Africa and AR. Net interest margin improved to 3.72% (30 June 2025: 3.64%), supported by pricing improvements across key asset and liability portfolios in South Africa and higher mobile lending revenue in AR partially offset by lower AR liability margins. Non-interest income increased by 4% to R10 813m (30 June 2025: R10 413m; up 5% in CCY) with net fee and commission income increasing by 3% (4% in CCY), driven by growth in customer activity on digital channels, partially offset by lower branch and cash activity. Net insurance income increased by 2% (up 3% in CCY), with underlying growth, offset by lower insurance revenue in AR following the sale of three insurance entities in the prior period. The cost-to-income ratio was largely stable at 55.9% (30 June 2025: 55.7%), reflecting slightly negative JAWS of 0.4%. The credit loss ratio improved to 1.87% (30 June 2025: 1.96%), with improvement evident in South Africa and AR. Return on equity (RoE) increased to 15.2% (30 June 2025: 13.9%), reflecting earnings growth of 12% and a 3% increase in average equity. Further improvements in RoE remain a business focus. SA AR PPB Active Customers (000) Jun 2025 Dec 2025 Jun 2026 8 465 2 890 8 402 2 675 8 604 3 004 Digitally Active Customers (000) 11 355 11 077 11 608 SA AR Jun 2025 Dec 2025 Jun 2026 3 581 1 495 3 418 1 321 3 774 1 605 5 076 4 739 5 379 5% 14% YoY % change (Jun 2026 vs Jun 2025) YoY % change (Jun 2026 vs Jun 2025) RoE (%) Jun 2024 Jun 2025 Jun 2026 14.0 13.5 15.2 15.2 15.5 13.9 12.1 12.0 12.7 PPB SA AR Headline earnings (R’m) SA AR Jun 2025 Jun 2024 Jun 2026 2 421 567 2 976 675 3 278 828 2 988 3 651 4 106 YoY % change (Jun 2026 vs Jun 2025) 12%
Page 83
81 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Business overview Strategic context Absa’s Personal and Private Banking (PPB) business continues to advance its integration journey, building on the successful consolidation of its South African operations and now consolidating the South Africa and AR businesses into a unified pan-African organisation. This milestone strengthens the Group’s presence across the continent, enabling PPB to serve customers more consistently, leverage scale more effectively and deliver the full range of Absa’s capabilities through a more integrated and customer-focused operating model. As the pan-African business integrates, management remains focused on enhancing the strength, resilience and sustainability of the franchise through three key strategic priorities: 1. F ixing the fundamentals –accelerating digital adoption, driving simpler, faster and more consistent customer experiences. 2. L everaging core strengths – repositioning distribution as a commercial growth engine and deepening customer relationships through targeted engagements and integrated propositions. 3. D riving growth and differentiation – harnessing strategic partnerships, emerging technologies and platforms to unlock ecosystem opportunities and deliver differentiated customer propositions and experiences. These priorities are supported by greater collaboration across markets and business units, continued investment in future-fit enterprise platforms and the strategic use of partnerships. Together, they are expected to improve execution, enhance scalability and strengthen the business's ability to capture growth opportunities across its pan-African footprint. Looking ahead As PPB progresses its pan-African integration journey, management remains focused on balancing near-term execution with long-term growth ambitions. In the near term, focus will be on completing the integration of the South Africa and Africa Regions businesses, embedding the new operating model and delivering market-comparable growth. Priorities include enhancing digital customer experiences and leveraging our distribution network to accelerate customer acquisition and growth while maintaining disciplined capital allocation. Over the longer term, the business will focus on leveraging new platforms and partners to accelerate growth through scaled digital-first customer acquisition and engagement, expanded payments and ecosystem capabilities. In parallel, management remains committed to simplifying operations and driving greater efficiencies to support greater operating leverage, improve efficiency and enhance the franchise’s return on equity over time. This approach is intended to strengthen the quality and sustainability of earnings, deepen customer relationships and support the delivery of sustainable long-term value for shareholders. CTI (%) 53.6 62.2 55.9 53.6 63.2 55.754.3 51.5 64.1 CLR (%) Jun 2024 Jun 2025 Jun 2026 PPB SA AR Jun 2024 Jun 2025 Jun 2026 PPB SA AR 1.93 2.22 1.87 1.88 1.811.96 2.29 2.34 1.84 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 29 314 28 119 4 6 57 682 Pre-provision profit (Rm) 12 918 12 445 4 6 25 779 Headline earnings (Rm) 4 106 3 651 12 15 8 872 Credit loss ratio (%) 1.87 1.96 1.70 Cost-to-income ratio (%) 55.9 55.7 55.3 RoRWA (%) 2.23 2.03 2.44 RoA (%) 0.76 0.70 0.83 RoA net of internal balances (%) 1.14 1.05 1.25 RoE (%) 15.2 13.9 16.7 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Personal and Private Banking for the interim reporting period ended
Page 84
82 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Personal and Private Banking SA 30 June 31 December Change 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 13 479 12 786 5 26 195 Non-interest income 8 808 8 454 4 17 502 Total income 22 287 21 240 5 43 697 Credit impairment charges (5 354) (5 307) 1 (9 443) Operating expenses (11 952) (11 394) 5 (23 427) Other expenses (181) (213) (15) (957) Operating profit before income tax 4 800 4 326 11 9 870 Headline earnings 3 278 2 976 10 7 114 Operating performance (%) Net interest margin on average interest-bearing assets 3.02 2.93 2.94 Credit loss ratio 1.88 1.93 1.69 Non-interest income as % of income 39.5 39.8 40.1 Cost-to-income ratio 53.6 53.6 53.6 Key statement of financial position items (Rm) Loans and advances to customers 536 871 516 601 4 525 294 Loans and advances to banks 6 983 6 438 8 6 676 Total loans and advances 543 854 523 039 4 531 970 Deposits due to customers 370 661 363 051 2 367 515 Total deposits 370 661 363 051 2 367 515 Financial performance (%) RoA 0.69 0.64 0.75 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Personal and Private Banking AR Personal and Private Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 5 022 4 920 2 8 10 035 18 501 17 706 4 6 36 230 2 005 1 959 2 9 3 950 10 813 10 413 4 5 21 452 7 027 6 879 2 8 13 985 29 314 28 119 4 6 57 682 (644) (781) (18) (11) (1,242) (5 998) (6 088) (1) (1) (10 685) (4 444) (4 280) 4 9 (8 476) (16 396) (15 674) 5 6 (31 903) (290) (296) (2) (1) (575) (471) (509) (7) (7) (1,532) 1 649 1 522 8 20 3 692 6 449 5 848 10 13 13 562 828 675 23 36 1 758 4 106 3 651 12 15 8 872 10.06 9.86 10.09 3.72 3.64 3.66 1.81 2.22 1.73 1.87 1.96 1.70 28.5 28.5 28.2 36.9 37.0 37.2 63.2 62.2 60.6 55.9 55.7 55.3 66 308 65 569 1 12 64 186 603 179 582 170 4 5 589 480 698 529 32 41 442 7 681 6 967 10 11 7 118 67 006 66 098 1 13 64 628 610 860 589 137 4 5 596 598 100 599 101 607 (1) 9 99 878 471 260 464 658 1 3 467 393 100 599 101 607 (1) 9 99 878 471 260 464 658 1 3 467 393 1.38 1.13 1.45 0.76 0.70 0.83
Page 85
83 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Personal and Private Banking SA 30 June 31 December Change 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 13 479 12 786 5 26 195 Non-interest income 8 808 8 454 4 17 502 Total income 22 287 21 240 5 43 697 Credit impairment charges (5 354) (5 307) 1 (9 443) Operating expenses (11 952) (11 394) 5 (23 427) Other expenses (181) (213) (15) (957) Operating profit before income tax 4 800 4 326 11 9 870 Headline earnings 3 278 2 976 10 7 114 Operating performance (%) Net interest margin on average interest-bearing assets 3.02 2.93 2.94 Credit loss ratio 1.88 1.93 1.69 Non-interest income as % of income 39.5 39.8 40.1 Cost-to-income ratio 53.6 53.6 53.6 Key statement of financial position items (Rm) Loans and advances to customers 536 871 516 601 4 525 294 Loans and advances to banks 6 983 6 438 8 6 676 Total loans and advances 543 854 523 039 4 531 970 Deposits due to customers 370 661 363 051 2 367 515 Total deposits 370 661 363 051 2 367 515 Financial performance (%) RoA 0.69 0.64 0.75 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Personal and Private Banking AR Personal and Private Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 5 022 4 920 2 8 10 035 18 501 17 706 4 6 36 230 2 005 1 959 2 9 3 950 10 813 10 413 4 5 21 452 7 027 6 879 2 8 13 985 29 314 28 119 4 6 57 682 (644) (781) (18) (11) (1,242) (5 998) (6 088) (1) (1) (10 685) (4 444) (4 280) 4 9 (8 476) (16 396) (15 674) 5 6 (31 903) (290) (296) (2) (1) (575) (471) (509) (7) (7) (1,532) 1 649 1 522 8 20 3 692 6 449 5 848 10 13 13 562 828 675 23 36 1 758 4 106 3 651 12 15 8 872 10.06 9.86 10.09 3.72 3.64 3.66 1.81 2.22 1.73 1.87 1.96 1.70 28.5 28.5 28.2 36.9 37.0 37.2 63.2 62.2 60.6 55.9 55.7 55.3 66 308 65 569 1 12 64 186 603 179 582 170 4 5 589 480 698 529 32 41 442 7 681 6 967 10 11 7 118 67 006 66 098 1 13 64 628 610 860 589 137 4 5 596 598 100 599 101 607 (1) 9 99 878 471 260 464 658 1 3 467 393 100 599 101 607 (1) 9 99 878 471 260 464 658 1 3 467 393 1.38 1.13 1.45 0.76 0.70 0.83
Page 86
84 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended PPB South Africa delivered headline earnings growth of 10% to R3 278m (30 June 2025: R2 976m). Performance was underpinned by a 5% increase in pre-provision profit, driven by top-line growth of 5%, while the credit loss ratio improved by (-5bps) to 1.88%. Key performance highlights for the period include the following: PPB South Africa Total customers increased by 3% to 9.9m with stronger expansion observed within higher-income segments and digital adoption improved, with digitally active customers increasing by 10% to 3.8m. Net interest income increased by 5% to R13 479m (30 June 2025: R12 786m), with net interest margins expanding by (+9bps) to 3.02%. This performance reflects pricing improvements, while average balance sheet increased by 3% year-on-year, with moderate growth reflecting a focus on value-based lending decisions. Non-interest income increased by 4% to R8 808m (30 June 2025: R8 454m). Net fee and commission income grew by 2%, from continued momentum in digital channels, including an 18% increase in digital payment revenues and a 31% increase in revenue from newly implemented value-added services. This growth was partially offset by lower branch and ATM revenues, together with higher Rewards costs. Net insurance income increased by 14%, driven by sales growth in digital, funeral and fully underwritten risk products. The cost-to-income ratio remained unchanged at 53.6% (30 June 2025: 53.6%), reflecting a flat JAWS performance during the period. Operating expenses increased by 5%, in line with total income growth of 5%, demonstrating cost optimisation initiatives while supporting investment in strategic growth initiatives and franchise sustainability. The credit loss ratio improved to 1.88% (30 June 2025: 1.93%), reflecting the benefits of enhanced collections performance and revised new business lending criteria. Credit outcomes were supported by improvements in the Vehicle and Asset Finance and Card portfolios. Return on equity (RoE) increased to 15.2% (30 June 2025: 14.0%), reflecting a 10% increase in headline earnings and a 2% increase in average equity year-on-year. 30 June 31 December Change Salient features 2026 2025 % 2025 Income (Rm) 22 287 21 240 5 43 697 Pre-provision profit (Rm) 10 335 9 846 5 20 270 Headline earnings (Rm) 3 278 2 976 10 7 114 Credit loss ratio (%) 1.88 1.93 1.69 Cost-to-income ratio (%) 53.6 53.6 53.6 RoRWA (%) 2.29 2.12 2.52 RoA (%) 0.69 0.64 0.75 RoE (%) 15.2 14.0 16.6 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 87
85 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Business profile PPB SA PPB SA offers a comprehensive range of products and services to the retail consumer segments. Customers are served through an extensive integrated channel network across physical and virtual points of presence, including partnerships, and increasingly through digital channels. The focus remains on providing a consistently superior experience across multiple channels tailored to each customer’s needs and expectations. Key business areas • T ransactions and Deposits includes Transactional, Savings and Investments, Advice and Investments and the Private Wealth Banking division: – T ransactional, Savings and Investments offers a full range of transactional banking, savings and investment products and services through multiple channels. - Advice and In vestments encompasses financial planning, direct insurance sales, investment management, stockbroking, and fiduciary services. - P rivate Wealth Banking serves high-net-worth clients with a full range of local and international banking services, including transactional, lending, savings, investment, and forex solutions. It also offers personalised wealth management strategies tailored to clients’ life stages and financial goals. • Unsecur ed Lending includes Personal Loans and Card: – P ersonal Loans offers unsecured loans through the Absa mobile banking app, internet banking, face-to-face engagements, and the contact centre channels. – Car d offers credit cards through a mix of Absa-branded and co-branded products. This portfolio also includes partnerships with Woolworths Financial Services, which offers in-store cards, credit cards, personal loans, life and non-life insurance products. • Home L oans offers residential property-related finance solutions directly to customers through personalised services, electronic channels and intermediaries such as estate agents and mortgage originators. • V ehicle and Asset Finance (VAF) offers funding solutions for passenger and light commercial vehicles to customers through approved dealerships and preferred suppliers. VAF also provides wholesale funding solutions (floorplans) to dealers and dealer groups. VAF’s joint venture with Ford Financial Services is an extension of the business. It reinforces the strategic intent of establishing and harnessing relationships with original equipment manufacturers (OEMs), dealers and customers. • Insur ance SA includes the following: – Lif e Insurance covers death, disability, retrenchment, critical illness, funeral and life-wrapped investment products mainly targeted at retail and group life insurance customers, distributed through face-to-face advisors, bank branches, mobile, call centres, partnerships and digital channels. – Non-Lif e Insurance provides insurance solutions to the retail and commercial market segments, including motor comprehensive insurance, buildings insurance, legal insurance, pet insurance and value-added products such as extended cover and motor warranty.
Page 88
86 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Transactions and Deposits Unsecured Lending 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 3 556 3 322 7 6 961 4 937 4 714 5 9 724 Non-interest income 5 442 5 284 3 10 913 1 910 1 810 6 3 762 Total income 8 998 8 606 5 17 874 6 847 6 524 5 13 486 Credit impairment charges (269) (227) 19 (413) (3 186) (3 289) (3) (6 297) Operating expenses (6 852) (6 507) 5 (13 174) (2 979) (2 843) 5 (5 687) Other expenses (177) (198) (11) (647) (43) (43) – (311) Operating profit before income tax 1 700 1 674 2 3 640 639 349 83 1 191 Headline earnings 1 245 1 188 5 2 838 328 193 70 763 Operating performance (%) Net interest margin on average interest-bearing assets 2.10 1.96 2.02 11.12 10.61 10.66 Credit loss ratio 3.01 2.71 2.43 7.49 7.67 7.35 Non-interest income as % of income 60.5 61.4 61.1 27.9 27.7 27.9 Cost-to-income ratio 76.2 75.6 73.7 43.5 43.6 42.2 Key statement of financial position items (Rm) Loans and advances to customers 10 776 10 552 2 11 032 71 613 70 923 1 71 288 Loans and advances to banks 4 930 4 439 11 4 867 201 166 21 125 Total loans and advances 15 706 14 991 5 15 899 71 814 71 089 1 71 413 Deposits due to customers 367 339 359 721 2 364 041 1 899 1 914 (1) 2 003 Total deposits 367 339 359 721 2 364 041 1 899 1 914 (1) 2 003 Financial performance (%) RoA 0.71 0.68 0.79 0.85 0.50 0.98 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Home Loans Vehicle and Asset Finance Insurance SA 30 June 31 December 30 June 31 December 30 June 31 December Change Change Change 2026 2025 % 2025 2026 2025 % 2025 2026 2025 % 2025 2 845 2 741 4 5 552 2 178 2 043 7 4 063 1 – 100 (3) 276 275 0 560 387 370 5 766 1 280 1 212 6 2 493 3 121 3 016 3 6 112 2 565 2 413 6 4 829 1 281 1 212 6 2 490 (810) (747) 8 (1 112) (1 089) (1 044) 4 (1 621) – – – – (1 215) (1 162) 5 (2 335) (994) (985) 1 (1 968) (521) (481) 8 (1 014) (21) (19) 11 (96) 39 46 (15) 111 (9) (11) (18) (46) 1 075 1 088 (1) 2 569 521 430 21 1 351 751 720 4 1 430 750 733 2 1 784 366 300 22 960 505 515 (2) 996 1.74 1.72 1.71 3.13 3.24 3.12 n/a n/a n/a 0.50 0.47 0.34 1.59 1.66 1.26 n/a n/a n/a 8.8 9.1 9.2 15.1 15.3 15.9 99.9 100.0 100.1 38.9 38.5 38.2 38.8 40.8 40.8 40.7 39.7 40.7 319 115 312 658 2 315 935 135 367 122 468 11 127 039 – – – – 202 232 (13) 199 – – – – 1 643 1 165 41 1 043 319 317 312 890 2 316 134 135 367 122 468 11 127 039 1 643 1 165 41 1 043 1 372 1 380 (1) 1 429 40 26 54 31 – – – – 1 372 1 380 (1) 1 429 40 26 54 31 – – – – 0.44 0.43 0.52 0.51 0.46 0.72 n/a n/a n/a PPB South Africa
Page 89
87 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Transactions and Deposits Unsecured Lending 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 3 556 3 322 7 6 961 4 937 4 714 5 9 724 Non-interest income 5 442 5 284 3 10 913 1 910 1 810 6 3 762 Total income 8 998 8 606 5 17 874 6 847 6 524 5 13 486 Credit impairment charges (269) (227) 19 (413) (3 186) (3 289) (3) (6 297) Operating expenses (6 852) (6 507) 5 (13 174) (2 979) (2 843) 5 (5 687) Other expenses (177) (198) (11) (647) (43) (43) – (311) Operating profit before income tax 1 700 1 674 2 3 640 639 349 83 1 191 Headline earnings 1 245 1 188 5 2 838 328 193 70 763 Operating performance (%) Net interest margin on average interest-bearing assets 2.10 1.96 2.02 11.12 10.61 10.66 Credit loss ratio 3.01 2.71 2.43 7.49 7.67 7.35 Non-interest income as % of income 60.5 61.4 61.1 27.9 27.7 27.9 Cost-to-income ratio 76.2 75.6 73.7 43.5 43.6 42.2 Key statement of financial position items (Rm) Loans and advances to customers 10 776 10 552 2 11 032 71 613 70 923 1 71 288 Loans and advances to banks 4 930 4 439 11 4 867 201 166 21 125 Total loans and advances 15 706 14 991 5 15 899 71 814 71 089 1 71 413 Deposits due to customers 367 339 359 721 2 364 041 1 899 1 914 (1) 2 003 Total deposits 367 339 359 721 2 364 041 1 899 1 914 (1) 2 003 Financial performance (%) RoA 0.71 0.68 0.79 0.85 0.50 0.98 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Home Loans Vehicle and Asset Finance Insurance SA 30 June 31 December 30 June 31 December 30 June 31 December Change Change Change 2026 2025 % 2025 2026 2025 % 2025 2026 2025 % 2025 2 845 2 741 4 5 552 2 178 2 043 7 4 063 1 – 100 (3) 276 275 0 560 387 370 5 766 1 280 1 212 6 2 493 3 121 3 016 3 6 112 2 565 2 413 6 4 829 1 281 1 212 6 2 490 (810) (747) 8 (1 112) (1 089) (1 044) 4 (1 621) – – – – (1 215) (1 162) 5 (2 335) (994) (985) 1 (1 968) (521) (481) 8 (1 014) (21) (19) 11 (96) 39 46 (15) 111 (9) (11) (18) (46) 1 075 1 088 (1) 2 569 521 430 21 1 351 751 720 4 1 430 750 733 2 1 784 366 300 22 960 505 515 (2) 996 1.74 1.72 1.71 3.13 3.24 3.12 n/a n/a n/a 0.50 0.47 0.34 1.59 1.66 1.26 n/a n/a n/a 8.8 9.1 9.2 15.1 15.3 15.9 99.9 100.0 100.1 38.9 38.5 38.2 38.8 40.8 40.8 40.7 39.7 40.7 319 115 312 658 2 315 935 135 367 122 468 11 127 039 – – – – 202 232 (13) 199 – – – – 1 643 1 165 41 1 043 319 317 312 890 2 316 134 135 367 122 468 11 127 039 1 643 1 165 41 1 043 1 372 1 380 (1) 1 429 40 26 54 31 – – – – 1 372 1 380 (1) 1 429 40 26 54 31 – – – – 0.44 0.43 0.52 0.51 0.46 0.72 n/a n/a n/a
Page 90
88 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended PPB Other Personal and Private Banking SA 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 (38) (34) 12 (102) 13 479 12 786 5 26 195 (487) (497) (2) (992) 8 808 8 454 4 17 502 (525) (531) (1) (1 094) 22 287 21 240 5 43 697 – – – – (5 354) (5 307) 1 (9 443) 609 584 4 751 (11 952) (11 394) 5 (23 427) 30 12 >100 32 (181) (213) (15) (957) 114 65 75 (311) 4 800 4 326 11 9 870 84 47 79 (227) 3 278 2 976 10 7 114 n/a n/a n/a 3.02 2.93 2.94 n/a n/a n/a 1.88 1.93 1.69 n/a n/a n/a 39.5 39.8 40.1 n/a n/a n/a 53.6 53.6 53.6 – – – – 536 871 516 601 4 525 294 7 436 (98) 442 6 983 6 438 8 6 676 7 436 (98) 442 543 854 523 039 4 531 970 11 10 10 11 370 661 363 051 2 367 515 11 10 10 11 370 661 363 051 2 367 515 n/a n/a n/a 0.69 0.64 0.75 PPB South Africa
Page 91
89 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Business performance Operating environment The operating environment remained challenging for households during the first half of 2026, with the stabilisation evident towards the end of 2025 disrupted by renewed inflationary pressures arising from geopolitical uncertainty in the Middle East. Consumer inflation increased from 3.1% in March to 5.0% in June, largely driven by higher fuel prices, while the South African Reserve Bank increased the repo rate by 25 basis points to 7.0% in May in response to rising inflation risks. This placed renewed pressure on household disposable income and borrowing costs, particularly for customers exposed to variable-rate credit products. Consumer affordability remained constrained by elevated debt levels, modest real income growth and higher fuel and essential living costs. Against this backdrop, PPB South Africa operated in an environment characterised by cautious customer behaviour. Modest economic growth provided some support, however, higher inflation and interest rates continued to moderate the recovery in discretionary spending and credit demand. Business and customer overview During the first half of 2026, PPB continued to execute its strategic priorities, strengthening customer engagement, enhancing digital capabilities and expanding growth opportunities across the franchise. This resulted in several notable outcomes: • P rogressed customer-led initiatives, including enhanced customer intelligence capabilities to support profitability management and commercial decision-making. • A ccelerated growth in key customer segments, including Private and Wealth Banking, through targeted acquisition, migration and relationship-led initiatives. • Expanded digital servicing capabilities through Banking App enhancements, including Instant Loans, Promise-to-Pay, Instant Savings, enhanced international payments and Bill Payments, supporting higher digital sales, customer self-service and engagement. • Absa R ewards strengthened customer engagement through the addition of Shell as a fuel partner. Membership increased by over 21% year-on-year, while members advancing through reward tiers grew 15% to 511k. • T he payments ecosystem remained central to our customer transactional propositions, with PayShap volumes increasing 42% year-on-year and Absa Pay transaction volumes and values more than doubling, supported by expanded payment partnerships and merchant acceptance. • E nhanced international payments capabilities through the launch of Absa Global Pay, extending the remittance proposition to 18 corridors. • S trengthened strategic partnerships, with VAF securing the iCAUR Finance partnership and winning the BYD Finance partnership, expanding its white-labelled finance offering and growth opportunities. • Con tinued to reposition distribution and customer access through network rationalisation, workforce reshaping, digital adoption initiatives and geospatial analytics, while maintaining strong customer experience outcomes. External recognition received The business’s continued focus on customer experience, digital innovation and operational excellence was recognised through several industry awards during the period: • Bes t Loyalty Programme in Africa, Financial Services – Absa Rewards (African Loyalty Awards 2025/2026). • Global Banking & F inance Review® Awards 2026: – Bes t Banking App South Africa 2026 – Bes t Customer Experience Bank South Africa 2026 – Bes t Digital Payments Product – Absa Pay South Africa 2026 – Bes t Employee Initiative/Product – Absa Wellness App South Africa 2026 – Bes t New Digital Banking Product – Absa Savings Coach South Africa 2026
Page 92
90 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended 30 June 31 December Change Client franchise 2026 2025 % 2025 Customer Total customers (thousands) 9 897 9 632 3 9 701 Active customers (thousands) 8 604 8 402 2 8 465 Active transactional customers (thousands) 6 225 5 998 4 6 070 Product holding per customer (average number) 2.91 2.80 2.87 Absa rewards membership base (thousands) 2 863 2 364 21 2 613 Customer Experience Index (out of 150) 114 111 111 Digital adoption Digitally active customers (thousands) 3 774 3 418 10 3 580 Number of PPB app users (thousands) 3 040 2 669 14 2 857 Number of app downloads (thousands)* 1 455 1 066 36 2 229 Digital engagement and usage Total mobile logins (millions)* 551.0 438.0 26 883.3 Physical footprint Point of presence (including number of branches and sales centres) 574 558 3 566 Sales and Service outlets 215 122 76 160 Number of ATMs and cash devices 4 976 5 096 (2) 5 016 Branch network floor space (000sqm) 277.9 281.9 (1) 278.1 * T his includes PPB and BB June 2025 and December 2025 numbers have been restated. Personal and Private Banking SA’s (PPB SA) performance reflects disciplined execution against its strategic priorities, including building a higher-quality and more entrenched customer franchise, establishing digital as the primary channel for customer engagement and acquisition, and optimising the distribution network to align with evolving customer preferences. The operational performance achieved in the first half of 2026 demonstrates meaningful progress against these priorities. • Ov erall customer numbers increased by 3% to 9.9m. While growth was measured, stronger expansion was observed within higher-income segments. • Activ e transactional customers grew by 4%, highlighting the role of digital capabilities in supporting customer engagement, driving transactional activity, and deepening customer relationships. • Absa R ewards played an important role in strengthening customer engagement and entrenchment. Membership increased by 21% to 2.9m, supported by targeted activation initiatives across new and existing customers. The number of customers advancing to higher rewards tiers increased by 15% to 511k, indicating increased engagement with average product holding improving to 2.91 (30 June 2025: 2.80). In addition, retail partnerships deepened during the year with the introduction of Shell as a fuel partner. • Digital adop tion improved, with digitally active customers increasing by 10% to 3.8m. This growth was supported by ongoing enhancements to the digital product suite and capabilities. Key developments during the period included a refreshed home screen experience, new app features such as Promise-To-Pay, instant loans, enhanced international payments, simplified funeral cover and the Power of Attorney functionality. These improvements were aimed at increasing adoption of the Absa banking app, where active app users increased by 14%, underscoring customers’ growing preference for convenient, accessible and seamless digital banking experiences. • T he continued growth in digital activity is contributing to an evolving revenue mix. Expansion of the Digital Lifestyle Voucher portfolio was a key contributor to the 19% growth in value-added service volumes. In addition, the introduction of Bill Payments and Global Pay during the first half of 2026 expanded the range of digital payment solutions available to customers. Digital payment activity maintained double-digit growth, supported by a 42% increase in PayShap volumes. • E volving customer preferences and behaviour drove the transformation of the distribution network. Network reconfiguration remained a focus with total points of presence increasing by 3% to 574. The composition of the network continued to evolve, with Sales and Service outlets increasing by 76% to 215 and now representing 37% of the total network, compared with 22% in the prior reporting period. Over the same period, traditional branches reduced by 18% to 359 and the ATM network declined by 2% to 4 976. These changes reflect the ongoing structural shift towards digital engagement, as evidenced by declines in branch cash transaction volumes. • Main taining high-quality service across digital and physical channels, while delivering simple and intuitive banking solutions, remains an important component of the customer value proposition. As a result, the Customer Experience Index improved to 114 (30 June 2025: 111), reflecting continued progress in delivering a positive customer experience. PPB South Africa
Page 93
91 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Risk management overview 30 June 2026 30 June 2025 Stage 1 Stage 2 Stage 3 (NPL) Stage 1 Stage 2 Stage 3 (NPL) Distribution Distribution Distribution Distribution Distribution Distribution % % % % % % Personal and Private Banking SA 82.7 7.8 9.5 82.1 7.9 10.1 Transactions and Deposits 78.3 12.0 9.7 77.7 10.8 11.5 Transactional Banking 73.3 13.8 12.9 74.6 11.1 14.3 Private Wealth Bank 81.7 10.8 7.5 79.8 10.6 9.6 Unsecured Lending 75.3 9.4 15.3 74.4 9.4 16.2 Personal Loans 70.2 11.6 18.2 68.0 11.7 20.3 Card 77.2 8.6 14.2 77.1 8.4 14.5 Home Loans 84.6 6.2 9.2 84.3 6.3 9.4 Vehicle and Asset Finance 82.9 10.3 6.8 82.1 10.5 7.5 During the reporting period, consumers continued to experience affordability pressure amid the lingering effects of inflation and interest rate pressure, compounded by uncertainty arising from global macroeconomic and geopolitical developments. Against this backdrop, Absa maintained a disciplined risk management approach, with a focus on enhanced monitoring of early warning indicators across customer and product segments, the acquisition of high-quality new-to-bank customers, and the retention of existing customer relationships. Strategic new business initiatives, particularly within Unsecured Lending and Vehicle and Asset Finance, have supported improved origination quality, contributing to lower loss rates and an improved portfolio construct. Collections strategies remained focused on strengthening pre-delinquency and payment solutions aimed at preventing accounts from entering arrears. Customers experiencing financial difficulty continued to be supported through tailored repayment and rehabilitation solutions. Where rehabilitation was not considered sustainable, particularly within Unsecured Lending, recovery strategies, including debt sales, were actively pursued. Within Secured Lending portfolios, including Home Loans and Vehicle and Asset Finance, recovery efforts continued to focus on assisted sales processes. These solutions have proven more effective in preserving value, reducing resolution timelines, and delivering improved recovery outcomes for customers and the bank. The effectiveness of these actions is reflected in lower stage 3 impairment contributions across secured and unsecured portfolios. The Home Loans NPL ratio improved, but remains elevated given to extended legal recovery timelines, reinforcing the strategic importance of assisted sales processes as an effective recovery mechanism. As digital adoption continued to increase, Absa experienced a rise in fraud attempts across its digital channels, consistent with broader industry trends driven by increasingly sophisticated social engineering techniques and malicious applications targeting customer devices. In response, the Group continued to strengthen its prevention and detection capabilities through the deployment of enhanced controls, including in-app malware detection, advanced call screening capabilities, sophisticated analytics, real-time customer alerts and customer awareness campaigns.
Page 94
92 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Financial performance PPB SA headline earnings increased by 10% to R3 278m (30 June 2025: R2 976m). This performance was underpinned by a 5% increase in pre-provision profits and flat JAWS, while the credit loss ratio improved by (-5bps) to 1.88%. As a result, RoE improved to 15.2% (30 June 2025: 14.0%), supported by earnings growth and a 2% year-on-year increase in average equity. Statement of financial position 30 June 31 December 2026 2025 2025 PPB Market share SA Retail Deposit market share (%) 20.5 21.1 20.8 SA Retail Advances market share (%) 21.6 22.2 21.8 Source: BA900, June 2026 June 2025 numbers have been restated. Customer deposits increased by 2% to R371bn (30 June 2025: R363bn), which was slower than market, mainly reflecting pricing adjustments in the rate-sensitive Savings and Investments portfolio. • Savings and In vestments increased by 2% to R285bn (30 June 2025: R280bn), with stronger growth in demand deposits offsetting lower fixed-deposit balances. • T ransactional Deposits increased by 2% to R57bn (30 June 2025: R56bn), supported by a 4% growth in the active transactional account base. Gross loans and advances to customers increased by 4% to R571bn (30 June 2025: R551bn) with moderate growth and market-share reductions reflecting the impact of credit risk measures implemented within Unsecured Lending and competition in the mortgage market. • Home L oans grew by 2% to R331bn (30 June 2025: R324bn), while production values increased by 13%, reflecting strong activity in a highly competitive market and a deliberate focus on higher-quality customer segments. • V ehicle and Asset Finance grew by 10% to R143bn (30 June 2025: R130bn), supported by strong market growth and production momentum in the instalment sales portfolio with key partners. • Unsecur ed Lending remained in line with the prior year at R85bn (30 June 2025: R85bn), reflecting a deliberate strategic focus on repositioning the portfolio. Within this, Personal Loans decreased by 7%, while Card balances increased modestly by 3%. Statement of comprehensive income Net interest income increased by 5% to R13 479m (30 June 2025: R12 786m), reflecting average deposit growth of 2% to R358bn (30 June 2025: R350bn) and average loans and advances growth of 3% to R567bn (30 June 2025: R548bn), together with a (+9bps) improvement in the net interest margin (NIM) to 3.02%. • Ne t interest income on loans and advances increased by 4%, supported by growth in loans and advances, pricing improvement across key portfolios, and lower interest in suspense. Unsecured Lending NIM increased by (+51bps) to 11.12% (30 June 2025: 10.61%). This improvement reflects the strategic repositioning in this portfolio, change in customer mix, and a deliberate focus on onboarding higher-quality customers. Home Loans NIM improved to 1.74% (2025: 1.72%), benefiting from lower funding costs, partially offset by continued pressure on flow pricing in a highly competitive market. In contrast, Vehicle and Asset Finance NIM declined by (-11bps) to 3.13%, mainly reflecting the roll-off of higher margin balances and strong growth in floor plans and partnership funding. • Ne t interest income on deposits increased by 4%, driven by growth in deposit balances and Savings and Investments NIM improvement of (+7bps) to 0.98%, supported by demand-led deposit growth and a continued focus on value optimisation. Non-interest income increased by 4% to R8 808m (30 June 2025: R8 454m), with net fee and commission income increasing by 2%, while net insurance income grew by 14%. • Ne t fee and commission income increased by 2%, while the active transactional customer base grew by 4% to 6.2m. Digital channels were a key contributor, with revenue increasing by 21%, supported by an 18% year-on-year increase in digital payment revenues and a 31% increase in revenue from value-added services. This growth was partially offset by lower Branch and ATM revenues, as well as higher Rewards costs. • Ne t insurance income increased by 14%. Life performance was supported by increased sales of digital, funeral and fully underwritten risk products, while Non-Life remained resilient despite the impact of weather-related claims experienced in the second quarter of 2026. PPB South Africa
Page 95
93 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Financial performance continued Credit impairment charge (Rm) Credit loss ratio (%) 30 June 31 December 30 June 31 December Change 2026 2025 % 2025 2026 2025 2025 Personal and Private Banking SA 5 354 5 307 1 9 443 1.88 1.93 1.69 Transactions and Deposits 269 227 19 413 3.01 2.71 2.43 Transactional Banking 239 228 5 387 8.48 8.07 6.86 Private Wealth Banking 30 (1) >100 26 0.81 (0.03) 0.38 Unsecured Lending 3 186 3 289 (3) 6 297 7.49 7.67 7.35 Personal Loans 1 074 1 024 5 2 112 9.06 8.12 8.49 Card 2 112 2 265 (7) 4 185 6.88 7.48 6.88 Home Loans 810 747 8 1 112 0.50 0.47 0.34 Vehicle and Asset Finance 1 089 1 044 4 1 621 1.59 1.66 1.26 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Impairments Credit impairments increased by 1% to R5 354m (30 June 2025: R5 307m), however the credit loss ratio (CLR) improved by (-5bps) to 1.88% (30 June 2025: 1.93%). • Home L oans CLR increased marginally to 0.50% (30 June 2025: 0.47%). Strong operational and collections trends were observed in the pre-legal portfolio, although pressure remains within the legal book, particularly on aged matters requiring higher levels of coverage. Weaker forward-looking assumptions amid ongoing macroeconomic uncertainty adversely affected the charge during the period. • V ehicle and Asset Finance (VAF) CLR improved by (-7bps) to 1.59%, driven by targeted new business criteria, a strategic shift away from higher-risk segments in prior years, and continued success from improved collections capabilities. • Unsecur ed Lending CLR improved by (-18bps) to 7.49%, supported by revised new business criteria and strengthened pre-delinquency and collections management. Within this, Card CLR improved to 6.88% (30 June 2025: 7.48%), while Personal Loans CLR increased to 9.06% (30 June 2025: 8.12%). The increase in Personal Loans reflect the non-recurrence of once-off benefits recognised in the prior year and weaker forward-looking assumptions. Notwithstanding this, the portfolio continued to demonstrate improving credit quality and default trends. Operating expenditure Operating expenses increased by 5% to R11 952m (30 June 2025: R11 394m). This increase reflects inflationary increases and continued investment in strategic initiatives, particularly digital capabilities and technology. The business also experienced elevated levels of digital fraud. To enhance operational efficiency and support long-term sustainability, a disciplined approach to cost management was maintained. The productivity programme continued to deliver cost savings through optimisation of the branch network, workforce and third-party spending. In addition, ongoing investments in new technologies, artificial intelligence, and the digitisation of colleague and back-office processes are expected to deliver further benefits through enhanced operational efficiency and automation. The cost-to-income ratio remained stable at 53.6% (30 June 2025: 53.6%), resulting in flat JAWS. Returns Measured progress was achieved in improving RoE during the reporting period. The business continues to focus on disciplined capital allocation, reinforcing its ability to deliver sustainable and competitive returns over the medium to long term.
Page 96
94 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Return on equity Average equity 30 June 31 December 30 June 31 December 2026 2025 2025 2026 2025 2025 % % % Rbn Rbn Rbn Personal and Private Banking SA 15.2 14.0 16.6 43.6 42.9 42.8 Transactions and Deposits 26.8 26.4 31.0 9.4 9.1 9.1 Unsecured Lending 7.3 4.5 8.7 9.1 8.7 8.8 Personal Loans (2.3) (2.3) 0.8 3.3 3.3 3.4 Card 12.9 7.4 13.7 5.7 5.4 5.4 Home Loans 13.0 11.9 14.9 11.6 12.4 12.0 VAF 9.3 8.5 13.1 8.0 7.1 7.3 Insurance SA 18.7 19.1 18.2 5.5 5.4 5.5 Life Insurance 36.0 40.9 39.9 2.5 2.2 2.3 Non-Life Insurance 17.1 19.3 21.3 1.8 1.9 1.9 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Transactions and Deposits Financial performance Transactions and Deposits headline earnings increased by 5% to R1 245m (30 June 2025: R1 188m) and the RoE increased slightly to 26.8% (30 June 2025: 26.4%). This outcome was supported by a 2% increase in pre-provision profits, driven by top-line income growth of 5%, partially offset by a 19% increase in credit impairments. Customer deposits increased by 2% to R367bn (30 June 2025: R360bn) and Gross loans and advances to customers increased by 1% to R11.9bn (30 June 2025: R11.7bn). 30 June 31 December 2026 2025 2025 Rm Rm % Rm Total income 8 998 8 606 5 17 874 Of which: Transactional 6 434 6 139 5 12 680 Savings and Investments 1 473 1 393 6 2 942 Advice and Investments 666 553 20 1 207 Private Wealth Banking 374 354 6 740 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Net interest income increased by 7% to R3 556m (30 June 2025: R3 322m). During the period, the business prioritised value optimisation over balance sheet expansion, focusing on sustainable margin generation while maintaining disciplined growth. Strong growth in demand deposits offset lower fixed-deposit balances, contributing to a (+14bps) expansion in NIM to 2.10%. Non-interest income increased by 3% to R5 442m (30 June 2025: R5 284m), supported by continued growth in the customer franchise, with active transactional customers increasing by 4% to 6.2m. Digital channels continued to be a key driver of growth, with digital revenue increasing by 21%, reflecting a 18% increase in digital payment revenues and a 31% increase in value-added service revenue. This performance was partially offset by lower branch and ATM revenues, consistent with the continued migration of customer activity towards digital channels. Management Fee income increased by 6%, while interchange income grew by 22% year-on-year, supported by higher customer transaction activity and the continued expansion of the flagship Ultimate Banking proposition. As a result of these combined performance drivers, total revenue increased by 5% to R8 998m (30 June 2025: R8 606m). The performance reflects continued execution against strategic priorities, a diversified revenue base, sustained customer engagement and increasing digital adoption. Transactions and Deposits credit impairments increased by 19% to R269m (30 June 2025: R227m) and the CLR increased to 3.01% (30 June 2025: 2.71%) with the increased CLR driven by the non-recurrence of once-off items in the prior period in the Overdrafts and Wealth portfolios. PPB South Africa
Page 97
95 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Unsecured Lending Financial performance Unsecured Lending delivered headline earnings growth of 70% to R328m (30 June 2025: R193m). This outcome was supported by a 5% increase in pre-provision profit and a 3% reduction in credit impairment charges. Total income grew by 5%, underpinned by balanced growth across net interest income which grew by 5% and non-interest revenue which increased by 6%. The improvement in earnings contributed to a RoE of 7.3% (30 June 2025: 4.5%). Key divisions in the Unsecured Lending business unit Personal Loans 30 June 31 December Change Salient features 2026 2025 % 2025 Net interest income (Rm) 1 697 1 628 4 3 471 Non-interest income (Rm) 172 180 (4) 354 Total income (Rm) 1 869 1 808 3 3 825 Headline earnings (Rm) (38) (38) (0) 28 Gross loans and advances (Rm) 23 174 24 884 (7) 23 989 Net interest margin on average interest-bearing assets (%) 13.4 12.22 12.69 Credit loss ratio (%) 9.06 8.12 8.49 Cost-to-income ratio (%) 44.12 44.17 41.87 RoE (%) (2.3) (2.3) 0.8 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Personal Loans reported a headline earnings loss of R38m, broadly in line with the prior year (30 June 2025: R38m loss), with performance supported by a 4% increase in pre-provision profit, driven by 3% growth in total income, partially offset by a 5% increase in credit impairment charges. Net interest income increased by 4% to R1 697m (30 June 2025: R1 628m), mainly from a NIM progression of (+118bps) to 13.40%. Gross loans and advances decreased by 7% to R23bn (30 June 2025: R25bn), driven by a 14% reduction in loan production and lower approval rates following the strengthening of credit origination criteria. Non-interest revenue declined by 4%, consistent with lower lending activities during the period. Credit impairment charges increased by 5% to R1 074m (30 June 2025: R1 024m), resulting in the CLR increasing to 9.06% (30 June 2025: 8.12%). The increase was primarily attributable to the non-recurrence of once-off benefits recognised in the prior year, together with a deterioration in forward-looking assumptions. This was partially mitigated by improved delinquency performance, reflecting the benefits of credit risk management actions and ongoing improvements in underlying portfolio quality. Book quality improved, with NPLs decreasing to 18.2% (30 June 2025: 20.3%). Total portfolio coverage reduced to 18.17% (30 June 2025: 19.79%), reflecting the improving risk profile of the portfolio and enhanced book quality.
Page 98
96 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Unsecured Lending Card 30 June 31 December Change Salient features 2026 2025 % 2025 Net interest income (Rm) 3 236 3 081 5 6 244 Non-interest income (Rm) 1 737 1 631 7 3 408 Total income (Rm) 4 973 4 712 6 9 652 Headline earnings (Rm) 365 201 82 733 Gross loans and advances (Rm) 62 134 60 144 3 60 773 Net interest margin on average interest-bearing assets (%) 10.21 9.93 9.79 Credit loss ratio (%) 6.88 7.48 6.88 Cost-to-income ratio (%) 43.42 43.27 42.41 RoE (%) 12.9 7.4 13.7 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Card headline earnings increased by 82% to R365m (30 June 2025: R201m). Growth was supported by a 5% increase in pre-provision profit and a 7% decrease in credit impairment charges. Net interest income increased by 5% to R3 236m (30 June 2025: R3 081m), supported by a (+28bps) expansion in NIM to 10.21%, following targeted management actions, while average gross customer advances remained broadly stable, increasing by 1% year-on-year. Card gross loans and advances grew by 3% to R62bn (30 June 2025: R60bn), supported by higher customer utilisation and engagement levels, partially offset by lower new limit production as targeted credit risk actions were implemented. Non-interest revenue grew by 7% to R1 737m (30 June 2025: R1 631m), primarily driven by strong insurance income growth within the joint venture portfolio, while underlying net fee and commission income increased by 2%. During the period, the business continued to invest in deepening customer engagement and enhancing its customer value proposition, with a particular focus on driving card usage and early month-on-book spend. These initiatives contributed to a 30% increase in Rewards costs and support the long-term sustainability of customer activity and portfolio value. The CLR improved by (-60bps) to 6.88% and credit impairment charges decreased by 7% to R2 112m (30 June 2025: R2 265m). The improvement reflects the successful execution of targeted risk management strategies. Delinquency performance improved across the collections book, resulting in lower write-offs, partially offset by the impact of weaker forward-looking assumptions amid continued macroeconomic uncertainty. Book quality also strengthened during the period, with NPLs reducing to 14.2% (30 June 2025: 14.5%). Portfolio coverage was largely stable at 15.26% (30 June 2025: 15.27%).
Page 99
97 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Home Loans Financial performance Home Loans headline earnings increased by 2% to R750m (30 June 2025: R733m), supported primarily by 3% growth in pre-provision profit, driven by top-line growth of 3%. Credit impairment charges increased by 8%. The improved earnings performance contributed to an improved RoE of 13.0% (30 June 2025: 11.9%). Gross loans and advances to customers increased by 2% to R331bn (30 June 2025: R324bn). Production values grew by 13%, while the market grew by 16%, reflecting strong customer activity in a highly competitive market and the business’s continued focus on higher-quality customer segments. Net interest income increased by 4% to R2 845m (30 June 2025: R2 741m). NIM improved to 1.74% (30 June 2025: 1.72%), benefiting from lower funding costs, partially offset by ongoing pressure on flow pricing within a competitive operating environment. Non-interest income remained stable year-on-year. Credit impairment charges increased by 8% to R810m (30 June 2025: R747m), resulting in the CLR increasing to 0.50% (30 June 2025: 0.47%). The pre-legal portfolio continued to perform well, supported by operational and collections initiatives. The legal portfolio remained under pressure, particularly within aged matters, requiring higher levels of coverage. The charge was further impacted by weaker forward-looking assumptions amid ongoing macroeconomic uncertainty. Despite these challenges, lower inflows and higher cure rates contributed to an improvement in asset quality, with the NPL ratio decreasing to 9.2% (30 June 2025: 9.4%), with NPL coverage increasing to 34.9% (30 June 2025: 32.7%), while total portfolio coverage rose to 3.60% (2025: 3.46%), primarily reflecting increased provisioning within stage 3 exposures. Vehicle and Asset Finance Financial performance Vehicle and Asset Finance headline earnings increasing by 22% to R366m (30 June 2025: R300m). Performance was supported by strong balance sheet growth, cost management and operational efficiencies. Pre-provision profit increased by 10% year-on-year, driven by top-line growth of 6%. Credit performance remained stable, with the CLR reflecting enhanced risk management and collections strategies. As a result, RoE improved to 9.3% (30 June 2025: 8.5%). Gross loans and advances to customers increased by 10% to R143bn (30 June 2025: R130bn), supported by continued momentum in the instalment sales portfolio. New business growth of 29% enabled the business to regain market share following the strategic shift towards value creation implemented in the prior year. Growth was further supported by expanding the floorplan finance portfolio, reflecting the successful onboarding of new facilities and increased utilisation by existing clients. Net interest income increased by 7% to R2 178m (30 June 2025: R2 043m), underpinned by growth in the instalment sales portfolio. Growth in lower-margin wholesale products resulted in a change in portfolio mix, and roll-off of higher-margin back-book contributed to a reduction in a NIM of (-11bps) to 3.13%. Non-interest revenue increased by 5%, driven by higher administrative fee income, supported by growth in the active customer base and continued expansion of the wholesale finance portfolio. Credit quality remained resilient, with the CLR improving to 1.59% (30 June 2025: 1.66%). Credit impairment charges increased modestly to R1 089m (30 June 2025: R1 044m), largely reflecting the impact of higher production volumes. This was partially offset by improved collections performance, which limited the migration of accounts into advanced delinquency buckets with ‘up to date’ improving. Credit outcomes continued to benefit from enhanced credit policies introduced in recent years, together with the strategic repositioning away from higher-risk customer segments. Asset quality improved during the period, with the debt review delinquency profile strengthening and contributing to a reduction in the NPL ratio to 6.8% (30 June 2025: 7.5%). Total portfolio coverage remained robust at 5.35% (30 June 2025: 5.78%), while NPL coverage was largely stable at 57.0% (30 June 2025: 56.9%).
Page 100
98 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Personal and Private Banking for the interim reporting period ended Insurance SA 30 June 31 December Change Salient features 2026 2025 % 2025 Total income (Rm) 1 281 1 212 6 2 490 Headline earnings (Rm) 505 515 (2) 996 RoE (%) 18.7 19.1 18.2 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Financial performance Insurance South Africa headline earnings decreased by 2% to R505m (30 June 2025: R515m). Within this performance, Life profit for the period increased by 1% to R444m (30 June 2025: R440m), while Non-Life decreased by 15% to R152m (30 June 2025: R179m). Overall new business volumes were impacted by lower levels of activity mainly within Unsecured Lending. Despite these dynamics, the business demonstrated operational resilience, supported by improved strike rates and sustained progress in the execution of its integrated bancassurance and partnerships strategy. Key divisions in the Insurance SA business unit Life 30 June 31 December Change Salient features 2026 2025 % 2025 Net premiums (Rm) 2 462 2 472 (0) 5 021 Insurance revenue (Rm) 2 644 2 581 2 5 310 Insurance service expense (Rm) (1 912) (2 023) (5) (4 178) Profit for the period (Rm) 444 440 1 882 Gross CSM balance (Rm) 8 104 8 476 (4) 7 967 Gross new business CSM (Rm) 783 862 (9) 1 436 RoE (%) 36.0 40.9 39.9 The Gross new business CSM of R822m disclosed in June 2025 was presented net of onerous new business. From December 2025, Gross new business CSM is presented on a profitable new business basis only, with onerous new business excluded. Financial performance Life Insurance South Africa delivered a resilient performance in a challenging operating environment characterised by ongoing consumer affordability pressures and market volatility. Profit for the period increased by 1% to R444m (30 June 2025: R440m), and the RoE decreased to 36.0% (30 June 2025: 40.9%), reflecting a higher equity base following the impact of lower interest rates during the 2025 financial year. Insurance revenue increased by 2% to R2 644m (30 June 2025: R2 581m), driven by modest growth of 2% in gross premiums. Premium income remained resilient, underpinned by increased sales of digital, funeral and fully underwritten risk products, which offset lower credit life volumes. Funeral sales performance benefited from the launch of the new funeral value propositions, which combines banking, rewards and funeral cover into an integrated customer offering resulting in new business volumes increasing by 10% year-on-year. The gross contractual service margin balance decreased by 4% year-on-year, primarily reflecting profit releases during the period, together with the impact of strengthened assumptions and modelling enhancements implemented during the 2025 financial year-end. Gross new business CSM declined by 9%, driven by lower credit life sales volumes, particularly within Unsecured Lending, partially offset by continued growth in funeral and fully underwritten risk product sales.
Page 101
99 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Non-Life 30 June 31 December Change Salient features 2026 2025 % 2025 Gross written premium (Rm) 2 048 1 989 3 4 128 Insurance revenue (Rm) 2 116 2 017 5 4 102 Insurance service expense (Rm) (1 647) (1 591) 4 (3 181) Insurance service result (Rm) 380 341 11 758 Profit for the period (Rm) 152 179 (15) 395 Underwriting margin (%) 6.3 6.5 7.6 RoE (%) 17.1 19.3 21.3 Financial performance Non-Life Insurance South Africa profit for the period decreased by 15% to R152m (30 June 2025: R179m). The decline was primarily attributable to lower investment returns. Consequently, RoE decreased to 17.1% (30 June 2025: 19.3%). The underwriting margin remained robust at 6.3% (30 June 2025: 6.5%), reflecting the continued effectiveness of management actions to improve portfolio quality and profitability. Ongoing enhancements to risk selection and underwriting processes contributed to a lower attritional claims’ ratio, which largely offset the impact of a catastrophe event experienced during the second quarter of the year. Gross written premium increased by 3% to R2.0bn, reflecting the business’s focus on profitable and sustainable growth. While premium growth remained modest, this was influenced by deliberate underwriting discipline, together with ongoing collection and retention challenges within certain direct insurance portfolios. These factors were partially offset by the continued expansion of the business’s distribution capabilities through the integration of complementary insurance solutions into existing banking relationships. This approach continues to strengthen customer engagement, broaden reach and support the delivery of integrated value propositions across the franchise. Insurance SA continued Personal and Private Banking for the interim reporting period ended
Page 102
100 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Life Non-Life 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 Statement of comprehensive income (Rm) Insurance revenue 2 644 2 581 2 5 310 2 116 2 017 5 4 102 Insurance service expenses (1 912) (2 023) (5) (4 178) (1 647) (1 591) 4 (3 181) Net expenses from reinsurance contracts (188) (59) >100 (148) (89) (85) 5 (163) Insurance service result 544 499 9 984 380 341 11 758 Net finance income/(expenses) from insurance contracts 73 (53) >100 (85) – – – (1) Net finance expenses from reinsurance contracts (45) (18) >100 (47) – – – – Investment income 931 1 094 (15) 2 745 104 128 (19) 268 Policyholder insurance contracts 61 163 (63) 358 30 33 (9) 64 Policyholder investment contracts 816 876 (7) 2 245 – – – – Shareholder funds 54 55 (2) 142 74 95 (22) 204 Changes in investment contracts liabilities (726) (788) (8) (2 058) – – – – Policyholder investment contracts liabilities (726) (788) (8) (2 058) – – – – Other investment-related income/(expenses) and other income (7) (13) (46) (30) 6 15 (60) 27 Gross operating income 770 721 7 1 509 490 484 1 1 052 Other operating expenses (111) (94) 18 (216) (268) (238) 13 (504) Net operating income 659 627 5 1 293 222 246 (10) 548 Taxation expense (215) (187) 15 (411) (70) (67) 4 (153) Profit for the period 444 440 1 882 152 179 (15) 395 Other comprehensive income (55) 241 <(100) 362 – – – – Total comprehensive income for the reporting period 389 681 (43) 1 244 152 179 (15) 395 Note (Rm) Investment income Policyholder insurance contracts 61 163 (63) 358 30 33 (9) 64 Net interest income 88 101 (13) 188 30 33 (9) 64 Dividend income 2 3 (33) 7 – – – – Fair value gains/(losses) (29) 59 <(100) 163 – – – – Policyholder investment contracts 816 876 (7) 2 245 – – – – Net interest income 416 397 5 802 – – – – Dividend income 59 44 34 109 – – – – Fair value gains/(losses) 341 435 (22) 1 334 – – – – Shareholder funds 54 55 (2) 142 74 95 (22) 204 Net interest income 51 46 11 99 83 85 (2) 170 Dividend income – – – – – – – – Fair value gains/(losses) 3 9 (67) 43 (9) 9 <(100) 34 Total 931 1 094 (15) 2 745 104 128 (19) 268 Net interest income 555 544 2 1 089 113 118 (4) 234 Dividend income 61 47 30 116 – – – – Fair value gains/(losses) 315 503 (37) 1 540 (9) 10 <(100) 34 Insurance HO Insurance SA 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 (193) (117) 65 (333) 4 567 4 481 2 9 079 65 54 20 134 (3 494) (3 560) (2) (7 225) 139 51 >100 112 (138) (93) 48 (199) 11 (12) >100 (87) 935 828 13 1 655 (8) (5) 60 (13) 65 (58) >100 (99) 13 12 8 4 (32) (6) >100 (43) 9 14 (36) 21 1 044 1 236 (16) 3 034 – – – – 91 196 (54) 422 (5) (6) (17) (12) 811 870 (7) 2 233 14 20 (30) 33 142 170 (16) 379 – – – – (726) (788) (8) (2 058) – – – – (726) (788) (8) (2 058) (4) (2) 100 4 (5) – 100 1 21 7 >100 (71) 1 281 1 212 6 2 490 (151) (160) (6) (340) (530) (492) 8 (1 060) (130) (153) (15) (411) 751 720 4 1 430 39 49 (20) 114 (246) (205) 20 (450) (91) (104) (13) (297) 505 515 (2) 980 – – – – (55) 241 <(100) 362 (91) (104) (13) (297) 450 756 (40) 1 342 – – – – 91 196 (54) 422 – – – – 118 134 (12) 252 – – – – 2 3 (33) 7 – – – – (29) 59 <(100) 163 (5) (6) (17) (12) 811 870 (7) 2 233 (5) (6) (17) (12) 411 391 5 790 – – – – 59 44 34 109 – – – – 341 435 (22) 1 334 14 20 (30) 33 142 170 (16) 379 14 20 (30) 34 148 151 (2) 303 – – – – – – – – – – – (1) (6) 19 <(100) 76 9 14 (36) 21 1 044 1 236 (16) 3 034 9 14 (36) 22 677 676 0 1 345 – – – – 61 47 30 116 – – – (1) 306 513 (40) 1 573 Insurance SA continued Personal and Private Banking for the interim reporting period ended
Page 103
101 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Life Non-Life 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 Statement of comprehensive income (Rm) Insurance revenue 2 644 2 581 2 5 310 2 116 2 017 5 4 102 Insurance service expenses (1 912) (2 023) (5) (4 178) (1 647) (1 591) 4 (3 181) Net expenses from reinsurance contracts (188) (59) >100 (148) (89) (85) 5 (163) Insurance service result 544 499 9 984 380 341 11 758 Net finance income/(expenses) from insurance contracts 73 (53) >100 (85) – – – (1) Net finance expenses from reinsurance contracts (45) (18) >100 (47) – – – – Investment income 931 1 094 (15) 2 745 104 128 (19) 268 Policyholder insurance contracts 61 163 (63) 358 30 33 (9) 64 Policyholder investment contracts 816 876 (7) 2 245 – – – – Shareholder funds 54 55 (2) 142 74 95 (22) 204 Changes in investment contracts liabilities (726) (788) (8) (2 058) – – – – Policyholder investment contracts liabilities (726) (788) (8) (2 058) – – – – Other investment-related income/(expenses) and other income (7) (13) (46) (30) 6 15 (60) 27 Gross operating income 770 721 7 1 509 490 484 1 1 052 Other operating expenses (111) (94) 18 (216) (268) (238) 13 (504) Net operating income 659 627 5 1 293 222 246 (10) 548 Taxation expense (215) (187) 15 (411) (70) (67) 4 (153) Profit for the period 444 440 1 882 152 179 (15) 395 Other comprehensive income (55) 241 <(100) 362 – – – – Total comprehensive income for the reporting period 389 681 (43) 1 244 152 179 (15) 395 Note (Rm) Investment income Policyholder insurance contracts 61 163 (63) 358 30 33 (9) 64 Net interest income 88 101 (13) 188 30 33 (9) 64 Dividend income 2 3 (33) 7 – – – – Fair value gains/(losses) (29) 59 <(100) 163 – – – – Policyholder investment contracts 816 876 (7) 2 245 – – – – Net interest income 416 397 5 802 – – – – Dividend income 59 44 34 109 – – – – Fair value gains/(losses) 341 435 (22) 1 334 – – – – Shareholder funds 54 55 (2) 142 74 95 (22) 204 Net interest income 51 46 11 99 83 85 (2) 170 Dividend income – – – – – – – – Fair value gains/(losses) 3 9 (67) 43 (9) 9 <(100) 34 Total 931 1 094 (15) 2 745 104 128 (19) 268 Net interest income 555 544 2 1 089 113 118 (4) 234 Dividend income 61 47 30 116 – – – – Fair value gains/(losses) 315 503 (37) 1 540 (9) 10 <(100) 34 Insurance HO Insurance SA 30 June 31 December 30 June 31 December Change Change 2026 2025 % 2025 2026 2025 % 2025 (193) (117) 65 (333) 4 567 4 481 2 9 079 65 54 20 134 (3 494) (3 560) (2) (7 225) 139 51 >100 112 (138) (93) 48 (199) 11 (12) >100 (87) 935 828 13 1 655 (8) (5) 60 (13) 65 (58) >100 (99) 13 12 8 4 (32) (6) >100 (43) 9 14 (36) 21 1 044 1 236 (16) 3 034 – – – – 91 196 (54) 422 (5) (6) (17) (12) 811 870 (7) 2 233 14 20 (30) 33 142 170 (16) 379 – – – – (726) (788) (8) (2 058) – – – – (726) (788) (8) (2 058) (4) (2) 100 4 (5) – 100 1 21 7 >100 (71) 1 281 1 212 6 2 490 (151) (160) (6) (340) (530) (492) 8 (1 060) (130) (153) (15) (411) 751 720 4 1 430 39 49 (20) 114 (246) (205) 20 (450) (91) (104) (13) (297) 505 515 (2) 980 – – – – (55) 241 <(100) 362 (91) (104) (13) (297) 450 756 (40) 1 342 – – – – 91 196 (54) 422 – – – – 118 134 (12) 252 – – – – 2 3 (33) 7 – – – – (29) 59 <(100) 163 (5) (6) (17) (12) 811 870 (7) 2 233 (5) (6) (17) (12) 411 391 5 790 – – – – 59 44 34 109 – – – – 341 435 (22) 1 334 14 20 (30) 33 142 170 (16) 379 14 20 (30) 34 148 151 (2) 303 – – – – – – – – – – – (1) (6) 19 <(100) 76 9 14 (36) 21 1 044 1 236 (16) 3 034 9 14 (36) 22 677 676 0 1 345 – – – – 61 47 30 116 – – – (1) 306 513 (40) 1 573 Insurance SA continued Personal and Private Banking for the interim reporting period ended
Page 104
102 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Insurance SA 30 June 31 December 2026 2025 Change 2025 Rm Rm % Rm Statement of financial position (Rm) Assets Financial assets backing investment and insurance liabilities Policyholder investment contracts 29 694 25 291 17 27 844 Cash balances and loans and advances to banks 389 289 35 520 Investment securities 29 305 25 002 17 27 324 Policyholder insurance contracts 5 435 4 922 10 5 224 Cash balances and loans and advances to banks 902 836 8 903 Investment securities 3 288 3 070 7 3 190 Insurance contract assets 1 245 1 016 23 1 131 Reinsurance assets 467 485 (4) 517 Shareholder funds 3 385 3 375 0 3 294 Cash balances and loans and advances to banks 1 323 803 65 686 Investment securities 2 062 2 572 (20) 2 608 Other assets 1 273 1 135 12 1 521 Deferred tax asset 139 107 30 150 Total assets 40 393 35 315 14 38 550 Liabilities Liabilities under investment contracts 29 570 25 219 17 27 744 Insurance contracts liabilities 4 517 4 037 12 4 322 Reinsurance contracts liabilities 188 150 25 249 Other liabilities 710 490 45 695 Other liabilities 617 450 37 619 Other liabilities relating to investment contracts 93 40 >100 76 Deferred tax liabilities 3 24 (88) 26 Total liabilities 34 988 29 920 17 33 036 Equity Capital and reserves 5 405 5 395 0 5 514 Total equity 5 405 5 395 0 5 514 Total liabilities and equity 40 393 35 315 14 38 550 Insurance SA continued Personal and Private Banking for the interim reporting period ended
Page 105
103 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Return on equity increased by 2% to 15.5% (30 June 2025: 13.5%), from improved headline earnings performance, but remains below cost of equity. Loans and advances to customers grew by 1% to R66.3bn (30 June 2025: R65.6bn, up 12% in CCY), driven by the Personal lending (CCY: 11%) and mortgage products (CCY: 19%). Deposits due to customers decreased by 1% to R100.6bn, (30 June 2025: R101.6bn, up 9% in CCY), supported by growth in transactional accounts (CCY: 10%), while growth in investment products (CCY: 2%) was kept muted to protect the margins. Active customers grew by 12% to 3.0m from sustained acquisition, strong customer activation and engagement, while continuing to drive digital adoption and deepening of primary banking relationships. Total income grew by 2% to R7 027m (30 June 2025: R6 879m, up 8% in CCY), with net interest income and non-interest income growing by 2% (CCY: 8%) and 2% (CCY: 9%) respectively. Credit loss ratio decreased to 1.81% (30 June 2025: 2.22%), from improved portfolio performance and collection efforts, closing below the through-the-cycle range. Cost-to-income ratio increased to 63.2% (30 June 2025: 62.2%) driven primarily by inflation and once-off restructuring costs, which outpaced income growth, resulting in negative JAWS. PPB AR headline earnings increased by 23% to R828m (30 June 2025: R675m, up 36% in CCY), driven by banking operations which delivered double digit headline earnings growth of 14% (CCY: 26%). Key performance highlights for the period include: PPB Africa Regions 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 7 027 6 879 2 8 13 985 Pre-provision profit (Rm) 2 583 2 599 (1) 8 5 509 Headline earnings (Rm) 828 675 23 36 1 758 Credit loss ratio (%) 1.81 2.22 1.73 Cost-to-income ratio (%) 63.2 62.2 60.6 RoRWA (%) 2.02 1.70 2.17 RoA (%) 1.38 1.13 1.45 RoE (%) 15.5 13.5 17.1 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Business profile PPB AR comprises Banking and Insurance operations. Banking operations are conducted through the Personal and Private Banking business, offering a comprehensive suite of products and services including transactional, borrowing, savings, protection and investment solutions to individual customers across ten banking entities in nine African markets. This is facilitated through an integrated distribution network comprising branches, self-service, agency banking and digital channels, supported by a relationship-based model with a well-defined coverage structure built on specific customer value propositions (CVPs). Personal and Private Banking for the interim reporting period ended The AR Insurance business continues to execute its strategic transition from a manufacturing model to a distribution-led model. The sale of three of the five AR Insurance entities was concluded during the first half of 2025. The assets and liabilities of the two remaining AR Insurance subsidiaries, together with the local holding company, were classified as non-current assets and liabilities held for sale in accordance with IFRS 5 requirements.
Page 106
104 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Banking operations Key customer segments Banking AR PPB offers day-to-day banking services to individual customers by providing a comprehensive suite of lending, local and foreign currency transactional and deposit, cards, payments and insurance products across various segments. Key segments serviced include: • W ealth Banking servicing high-net-worth customers through superior relationship banking and uniquely customised offerings. • P remier banking represents the affluent PPB segment in each AR presence market. Customers are offered exclusive banking services with tailor-made solutions through dedicated relationship managers. • P restige banking represents the emerging affluent PPB segment in each market. Customers are serviced through dedicated banking teams, underpinned by full banking solutions and services keeping up with customers’ aspirations and needs. • P ersonal banking represents the middle-market segment. Customers have access to direct channels, including the branch network and are offered convenient and relevant products and services. • I nclusive banking provides access to the financial system and, where appropriate, finance to traditionally underbanked and unbanked segments. This segment is serviced primarily through digital channels. Business performance Business overview PPB AR’s strategic priority is to develop a high-quality, customer-led franchise through targeted customer acquisition, deeper engagement, improved CVPs and greater digital adoption. By enhancing customer experiences and strengthening relationships across key segments, the business aims to grow market share, improve returns and deliver sustainable long-term growth. The business delivered a strong underlying performance in the first half of 2026 despite a challenging operating environment, characterised by lower interest rates, margin compression in key markets, and ongoing macroeconomic pressures. Key initiatives that contributed to the growth include: • Launch o f Wealth in three markets, with phased rollout continuing across the region. • Es tablished the Mauritius Wealth Hub to enable cross-border wealth referrals and offshore banking propositions. • R efreshed and enhanced the Premier CVP across the region, including investment solutions and the Infinite Card proposition, supported by planned regional marketing campaigns. Continued focus on customer acquisition through Workplace Banking and affluent customer engagement programmes across markets. • P restige remained a strategic priority, with renewed focus on CVP revitalisation, customer acquisition and re-activation to accelerate growth. • Con tinued investment in digital and customer experience enhancements, including optimising digital onboarding journeys, and intensive migration of customers from physical channels to digital resulting in a 21% increase in digitally active customers and an 18% growth in digital transaction volumes. • Incr eased customer adoption and usage of card and payment innovations such as Multi-Currency Virtual Cards, Absa Pay, wearables such as Garmin Pay, and Digital Wallets targeting Youth and Next Generation segments of digitally native customers. • L ending momentum remained strong, driven by improved customer turnaround times and targeted affordable fixed- lending solutions which resulted in 38% growth in new loan production year on year. • Mobile lending con tinued to grow, with disbursements increasing by 9%, supporting portfolio growth and advancing the sustainability agenda. Through MNO and digital partnerships, the business continued to deepen financial inclusion for unbanked and underbanked segments by broadening access to short-term credit. The footprint was further expanded into Tanzania through a new Mobile Network Operator partnership. External recognition received The business received the following recognition from the market: • Absa Ghana r eceived multiple industry accolades in 2026, including Best Retail Bank, Best Retail Credit Card Provider Ghana, and Best Bank for Youth & Students Ghana recognised by Euromoney Awards and Global Banking & Finance Awards. • Absa K enya was recognised in 2025 as Bank of the Year by The Banker 2025, achieved Top Card Issuer Performance by Visa, Best Loan Bank in Kenya by World Economic Magazine Awards and Most Improved Bank in Customer Experience by Kenya Bankers Association Customer Satisfaction Survey. • Absa Mauritius w as named Bank of the Year 2025 by The Banker. • Absa Mo zambique received the Best for Premier Banking 2026 award from Euromoney Private Banking Awards. • Absa Sey chelles was recognised as Best Retail Bank for 2025 by Global Banking & Finance Review. Personal and Private Banking for the interim reporting period ended
Page 107
105 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Client franchise The client franchise improved across all segments during the period supported by a more customer-led and integrated operating model that enhanced understanding of customer needs and behaviors. Focused customer campaigns and offerings contributed to growth as follows; 30 June 31 December Change Client franchise 2026 2025 % 2025 Customer Active customers (thousands) 3 004 2 675 12 2 890 Product holding per customer (average number) 3.20 3.07 3.19 Customer Experience Index (out of 150) 103 103 102 Digital adoption Digitally active customers (thousands) 1 605 1 321 21 1 495 Physical footprint Sales and Service branches 406 403 1 405 Number of ATMs and cash devices 1 236 1 226 1 1 224 Number of Agents 39 653 25 793 54 35 620 Source: Internal MI • Activ e customers increased by 12% to 3.0m (30 June 2025: 2.7m), supported by targeted customer engagement initiatives, re-activation campaigns, and new-to-bank acquisition programmes. This further strengthened customer acquisition and onboarding, contributing to a 6% increase in new-to-bank customers. • P roduct holding improved to 3.20 (30 June 2025: 3.07) due to a deepening in customer life cycle management activities reflecting stronger customer primacy. • T he Customer Experience Index was maintained at 103 (30 June 2025: 103), reflecting sustained focus on delivering quality customer outcomes across the region. Africa Regions continues to invest in digital platform stability, customer feedback capabilities, complaints resolution, and fraud prevention to strengthen customer trust and enhance service delivery. • Digitally active customers grew by 21% to 1.6m (30 June 2025: 1.3m), driven by higher digital registration rates at onboarding, targeted re-activation campaigns for dormant users, and continued adoption of digital banking channels. The business focused on commercialisation of channel features and services, through migration of customers from branch channels to digital, increased awareness through targeted customer outreach initiatives, including branch activations and social media campaigns. • Expanded cus tomer access and convenience through targeted investments in the physical and digital distribution network. Points of presence increased to 406 (30 June 2025: 403), and the ATM network increased to 1 236 (30 June 2025: 1 226), as we continue to support customer's convenience and access. • Scaled Agency Banking as a key enabler of financial inclusion and customer accessibility, expanding to five markets with approximately 39 thousand agents. The growing footprint is enhancing reach, convenience and access to banking services. Expansion is underway to increase the footprint from five to seven markets by the end of the year. Personal and Private Banking for the interim reporting period ended
Page 108
106 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Financial performance – Banking Operations 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 6 940 6 690 4 10 13 766 Pre-provision profit (Rm) 2 524 2 554 (1) 7 5 492 Headline earnings (Rm) 787 691 14 26 1 736 Credit loss ratio (%) 1.83 2.24 1.74 Cost-to-income ratio (%) 63.6 61.8 60.1 RoRWA (%) 1.91 1.74 2.14 RoA (%) 1.37 1.21 1.49 RoE (%) 15.7 14.9 18.2 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Banking AR continued Deposits due to customers decreased by 1% to R100.6bn (30 June 2025: R101.6bn, up 9% in CCY), driven by the transactional products (CCY: 10%), while investment product (CCY: 2%) growth was muted as key markets continued to optimise funding costs by deliberately reducing high-cost deposits. Loans and advances to customers grew by 1% to R66.3bn (30 June 2025: R65.6bn, up 12% in CCY), supported by broad-based growth in mortgages (CCY: 19%) and Personal Loans (CCY: 11%). Total income grew by 4% to R6 940m (30 June 2025: R6 690m, up 10% in CCY) driven by: • Ne t interest income growth of 2% to R5 021m (30 June 2025: R4 916m, up 8% in CCY), impacted by a lower rate environment in some markets offset by 12% CCY growth in loans and advances to customers and 9% CCY growth in deposits due to customers, resulting in a (+20bps) expansion in NIM. • Non - interest income growth of 8% to R1 919m (30 June 2025: R1 774m, up 15% in CCY), driven largely by transactional fees (CCY: 11%), Bancassurance (CCY: 23%), as well as FX (CCY: 16%) across markets. Growth was further supported by a 12% increase in transactionally active customers and a 21% growth in digitally active customers. Credit impairments improved significantly, decreasing by 18% to R644m (30 June 2025: R781m, up 11% in CCY), driven by the continued benefits of enhanced models, stronger portfolio performance, improved collections and prudent credit risk management. This contributed to a lower CLR of 1.83% (30 June 2025: 2.24%) ending near the lower bound of the through-the-cycle (TTC) range. Asset quality strengthened with the NPL ratio improving to 4.4% (30 June 2025: 4.9%), while the overall coverage ratio reduced to 5.99% (30 June 2025: 6.92%), reflecting an improvement in the risk profile of the portfolio. Operating expenses increased by 7% to R4 416m (30 June 2025: R4 136m, up 12% CCY), driven largely by inflation, once-off restructuring costs and higher incentives accruals. Excluding these items, underlying cost growth was contained supported by ongoing benefits of the productivity programme that helped offset higher investment spend. The cost-to-income ratio increased to 63.6% (30 June 2025: 61.8%), mainly due to muted income growth which has resulted in a negative JAWS of 3%. RoE from Banking operations improved to 15.7% (30 June 2025: 14.9%), supported by strong headline earnings growth of 14% (CCY: 26%) to R787m (30 June 2025: R691m), and disciplined capital deployment resulting in stronger returns. Personal and Private Banking for the interim reporting period ended
Page 109
107 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Insurance AR Business profile A Bancassurance distribution model with key partners in AR is seen as a more sustainable model for generating non-interest revenue. The sale of Global Alliance Mozambique, Absa Life Botswana and Absa Life Zambia was completed in the 2025 financial year. As at 30 June 2026, the assets and liabilities relating to the two remaining Insurance AR subsidiaries, together with the local holding company, were classified as non-current assets and liabilities held for sale in accordance with IFRS 5 requirements. Insurance AR consists of: • Lif e Insurance covers death, disability, retrenchment, education and funeral and life-wrapped investment products. • N on-Life Insurance covers non-life insurance solutions including motor, medical and workmen’s compensation, primarily through agents leveraging the banking distribution channels. Financial performance 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 87 189 (54) (47) 219 Pre-provision profit (Rm) 60 45 33 81 16 Headline earnings (Rm) 41 (16) >100 >100 22 Cost-to-income ratio (%) 31.1 75.9 92.5 RoE (%) 12.2 (4.2) 3.2 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. The Group disposed of three of its Insurance AR entities – Global Alliance Mozambique, Absa Life Botswana and Absa Life Zambia during the first half of 2025, resulting in a loss of R60m. As a result, the year-on-year financial performance was materially impacted. • T otal income decreased by 54% (CCY: 47%) to R87m reflecting the sale of the three entities, and the impacts of lower interest rates in Kenya. • Oper ating expenses decreased by 81% (CCY: 79%) to R27m, reflecting the sale of the three entities, resulting in a decrease in the cost-to-income ratio to 31.1%. • Headline earnings incr eased to R41m, recovering from a low prior-year base caused by losses associated with the disposal of the three entities. Personal and Private Banking for the interim reporting period ended
Page 110
108 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Gross loans and advances to customer balances grew by 8% (CCY: 9%) to R191bn driven by client demand within the Commercial (up 9% in CCY) and the SME segments (up 10% in CCY). Both SA and AR balances grew by 8%. Customer deposit balances grew by 5% (CCY: 6%) to R314bn, attributable to stronger transactional balances growth of 10% (SA up 10% and AR up 9% in CCY) reflecting a focus on deepening primary banking relationships while investment products grew slower. Non-interest income grew by 7% (CCY: 8%) supported by increased client activity with International Banking and Forex up 19% in CCY, given higher volatility in the market and higher lending fees, partially offset by lower payments revenue. Returns increased from 23.1% to 24.6% driven by the increase in headline earnings and capital efficiency efforts. Credit loss ratio declined slightly from 0.64% to 0.63%, reflecting an overall stable outcome with the charge increasing off a low base in AR, offsetting the reduction in the SA charge. Net interest margin declined from 4.26% to 4.18%, mainly reflecting the impact of a lower rate environment in AR as margins in SA were stable. Cost-to-income ratio increased from 54.1% to 55.4%, primarily due to slower net interest income growth in AR while non-interest revenue grew in line with operating costs (up 7%). Business Banking for the interim reporting period ended BB delivered headline earnings of R2 743m (30 June 2025: R2 603m), up 5% (up 6% in CCY) with an RoE of 24.6% (30 June 2025: 23.1%). Key performance indicators for the period include the following: 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 10 574 10 088 5 6 20 604 Pre-provision profit (Rm) 4 718 4 626 2 3 9 330 Headline earnings (Rm) 2 743 2 603 5 6 5 354 Credit loss ratio (%) 0.63 0.64 0.56 Cost-to-income ratio (%) 55.4 54.1 54.7 RoRWA (%) 3.01 2.78 2.89 RoA (%) 1.45 1.48 1.46 RoA net of internal balances (%) 2.78 2.86 2.86 RoE (%) 24.6 23.1 24.0 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 111
109 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Business Banking for the interim reporting period ended Business profile BB consists of business units in SA and AR with associated products and is working towards providing customers with an assisted digital relationship management model, supported by a team of specialists, rather than multiple touchpoints within the Group. Strategic context In 2025, Absa Group undertook to transform and adopt a pan-African operating model to strengthen key geographies while expanding in high-potential markets. This new operating model necessitated the carving out of the BB AR segment that was previously included in the Africa Regions – Personal and Private Banking & Business Banking business unit and merging it with BB SA to create a pan-African Business Banking business unit. A new operating model for pan-BB is currently in the design phase with a goal of solutioning for customers across the region and leveraging economies of scale while balancing for local market nuances. Furthermore, the business has fully adopted revenue and costs- follow-client operating principles between BB SA and CIB SA, ensuring that client revenues and associated costs flow to the business unit that owns the client relationship, thereby improving the service model. The impact of the restatement on the BB SA historical financial results has been an improvement in headline earnings, returns and cost-to-income ratio for the business. AR already follows this principle. Operating environment BB operated in a complex environment during the first half of 2026, shaped primarily by the escalation of geopolitical uncertainty in the Middle East, which contributed to higher global energy prices, inflationary pressures and increased market uncertainty. Despite these challenges, economic activity across several of our markets remained relatively resilient, supported by prior macroeconomic reforms, infrastructure investment and continued demand for banking services. Customers remained cautious amid global trade uncertainty, foreign currency liquidity constraints in certain markets and a subdued investment environment. Nevertheless, strong balance sheet growth was achieved across key Africa Regions markets, reflecting ongoing client activity and franchise momentum. Margin compression in selected markets and higher funding costs placed pressure on net interest income despite continued volume growth. South Africa demonstrated moderate economic resilience, supported by improving business confidence, while elevated input costs, inflationary pressures and higher interest rates tempered borrowing and investment activity. Across Africa Regions, regulatory interventions including de-dollarisation measures, reserve requirement increases and reductions in banking fees continued to influence liquidity conditions and revenue generation. While these measures support long-term economic stability, they contributed to margin pressure and constrained earnings growth in affected markets.
Page 112
110 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Business Banking for the interim reporting period ended Business Banking AR Business Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 1 963 2 048 (4) 1 4 105 7 600 7 312 4 5 14 967 671 612 10 14 1 241 2 974 2 776 7 8 5 637 2 634 2 660 (1) 4 5 346 10 574 10 088 5 6 20 604 (79) (37) >100 >100 (159) (574) (545) 5 8 (976) (1 853) (1 734) 7 11 (3 524) (5 856) (5 462) 7 9 (11 274) (44) (44) – 2 (92) (75) (95) (21) (20) (242) 658 845 (22) (19) 1 571 4 069 3 986 2 3 8 112 346 422 (18) (16) 769 2 743 2 603 5 6 5 354 6.96 7.41 7.35 4.18 4.26 4.20 0.58 0.29 0.60 0.63 0.64 0.56 25.5 23.0 23.2 28.1 27.5 27.4 70.3 65.2 65.9 55.4 54.1 54.7 27 393 24 792 10 19 26 382 185 124 169 922 9 10 174 217 – – – – – 108 630 (83) (83) 374 27 393 24 792 10 19 26 382 185 232 170 552 9 10 174 591 50 423 48 167 5 13 48 069 313 751 299 141 5 6 308 811 1 6 (83) (75) 2 6 10 (40) (31) 7 50 424 48 173 5 13 48 071 313 757 299 151 5 6 308 818 1.27 1.60 1.44 1.45 1.48 1.46 Business Banking SA 30 June 31 December Change 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 5 637 5 264 7 10 862 Non-interest income 2 303 2 164 6 4 396 Total income 7 940 7 428 7 15 258 Credit impairment charges (495) (508) (3) (817) Operating expenses (4 003) (3 728) 7 (7 750) Other expenses (31) (51) (39) (150) Operating profit before income tax 3 411 3 141 9 6 541 Headline earnings 2 397 2 181 10 4 585 Operating performance (%) Net interest margin on average interest-bearing assets 3.67 3.66 3.62 Credit loss ratio 0.64 0.70 0.55 Non-interest income as % of income 29.0 29.1 28.8 Cost-to-income ratio 50.4 50.2 50.8 Key statement of financial position items (Rm) Loans and advances to customers 157 731 145 130 9 147 835 Loans and advances to banks 108 630 (83) 374 Total loans and advances 157 839 145 760 8 148 209 Deposits due to customers 263 328 250 974 5 260 742 Deposits due to banks 5 4 25 5 Total deposits 263 333 250 978 5 260 747 Financial performance (%) RoA 1.49 1.46 1.46 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 113
111 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Business Banking for the interim reporting period ended Business Banking AR Business Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 1 963 2 048 (4) 1 4 105 7 600 7 312 4 5 14 967 671 612 10 14 1 241 2 974 2 776 7 8 5 637 2 634 2 660 (1) 4 5 346 10 574 10 088 5 6 20 604 (79) (37) >100 >100 (159) (574) (545) 5 8 (976) (1 853) (1 734) 7 11 (3 524) (5 856) (5 462) 7 9 (11 274) (44) (44) – 2 (92) (75) (95) (21) (20) (242) 658 845 (22) (19) 1 571 4 069 3 986 2 3 8 112 346 422 (18) (16) 769 2 743 2 603 5 6 5 354 6.96 7.41 7.35 4.18 4.26 4.20 0.58 0.29 0.60 0.63 0.64 0.56 25.5 23.0 23.2 28.1 27.5 27.4 70.3 65.2 65.9 55.4 54.1 54.7 27 393 24 792 10 19 26 382 185 124 169 922 9 10 174 217 – – – – – 108 630 (83) (83) 374 27 393 24 792 10 19 26 382 185 232 170 552 9 10 174 591 50 423 48 167 5 13 48 069 313 751 299 141 5 6 308 811 1 6 (83) (75) 2 6 10 (40) (31) 7 50 424 48 173 5 13 48 071 313 757 299 151 5 6 308 818 1.27 1.60 1.44 1.45 1.48 1.46 Business Banking SA 30 June 31 December Change 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 5 637 5 264 7 10 862 Non-interest income 2 303 2 164 6 4 396 Total income 7 940 7 428 7 15 258 Credit impairment charges (495) (508) (3) (817) Operating expenses (4 003) (3 728) 7 (7 750) Other expenses (31) (51) (39) (150) Operating profit before income tax 3 411 3 141 9 6 541 Headline earnings 2 397 2 181 10 4 585 Operating performance (%) Net interest margin on average interest-bearing assets 3.67 3.66 3.62 Credit loss ratio 0.64 0.70 0.55 Non-interest income as % of income 29.0 29.1 28.8 Cost-to-income ratio 50.4 50.2 50.8 Key statement of financial position items (Rm) Loans and advances to customers 157 731 145 130 9 147 835 Loans and advances to banks 108 630 (83) 374 Total loans and advances 157 839 145 760 8 148 209 Deposits due to customers 263 328 250 974 5 260 742 Deposits due to banks 5 4 25 5 Total deposits 263 333 250 978 5 260 747 Financial performance (%) RoA 1.49 1.46 1.46 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 114
112 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Net interest margin increased slightly from 3.66% to 3.67%, as a favourable deposit mix offset pressure in lending product margins. Returns increased from 24.6% to 26.1%, driven by headline earnings growth and capital optimisation initiatives. Credit loss ratio improved from 0.70% to 0.64% and was marginally above the TTC range of 40-60bps reflecting normal portfolio and timing dynamics. Cost-to-income ratio increased slightly from 50.2% to 50.4% and was broadly stable as revenue growth of 7% largely matched operating cost growth of 7%. Gross loans and advances to customer balances grew by 8% to R161bn, driven by client demand with balances for the Commercial segment up 8% and the SME segment up 5%. Customer deposit balances grew by 5% to R263bn, due to higher transactional balances growth (up 10%), while investment products were up 3%. Non-interest income grew by 6% supported by increased client activity with International Banking and Forex up 28% given higher volatility in the market, PayShap volumes increasing by 91% albeit at a lower per transaction price point and higher lending fees, partially offset by lower volumes in merchant acquiring and cash. The SA franchise shows some improvement, with active customers up 2% to 357k, product holding per customer increasing from 2.70 to 2.73, and deeper digital penetration, with digitally active customer numbers increasing by 4% to 215k. Business Banking for the interim reporting period ended BB SA delivered headline earnings of R2 397m (30 June 2025: R2 181m), up 10% with an RoE of 26.1% (30 June 2025: 24.6%). Key performance indicators for the period include the following: BB South Africa 30 June 31 December Change Salient features 2026 2025 % 2025 Income (Rm) 7 940 7 428 7 15 258 Pre-provision profit (Rm) 3 937 3 700 6 7 508 Headline earnings (Rm) 2 397 2 181 10 4 585 Credit loss ratio (%) 0.64 0.70 0.55 Cost-to-income ratio (%) 50.4 50.2 50.8 RoRWA (%) 3.27 3.08 3.19 RoA (%) 1.49 1.46 1.46 RoE (%) 26.1 24.6 25.5 The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 115
113 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Business Banking for the interim reporting period ended Business profile BB SA consists of customer segments and associated products and is working towards providing customers with an assisted digital relationship management model, supported by a team of specialists, rather than multiple touchpoints within the Group. The business comprises two customer segments: • Small- and medium-siz ed enterprises (SMEs), which comprise business customers with an annual turnover of up to R50m. These clients are serviced using a differentiated approach that accounts for clients’ scale and complexity to enhance client value propositions and service models aligned with their needs. Micro-sized clients are primarily serviced through a combination of digital and virtual channels. Small and medium-sized clients are serviced though a relationship-based model supported by digital platforms and virtual channels. • Commer cial segment, which comprises predominantly unlisted business customers operating across diverse sectors with an annual turnover above R50m and before being classified as large corporates with complex needs. These customers are serviced using a relationship-based model, where dedicated sales and service teams provide customised solutions and are supported by digital platforms. Customers are served with a variety of products, including: – T ransactional and Deposits consisting of transactional banking, savings and investments, foreign exchange and international banking solutions. – P ayments consisting of payment acceptance (merchant acquiring), cash management, and commercial issuing. – L ending Products consisting of commercial asset finance, real estate finance, term lending, fleet card, working capital solutions and Absa vehicle management services. – I slamic Banking offering various Shari’ah-compliant banking solutions. Business performance The business continued to deliver against strategic objectives, demonstrated by the following achievements: • Main tained a leading position in the agricultural sector and gained momentum in the diversification of the Commercial segment, with upper single-digit growth in select focus sectors on top-line revenue and balance sheet. • F urther strengthening CVPs and embedding client service models in the SME and Commercial segments, with a strong focus on the right quality of clients over quantity. • Con tinued improvement of the of client experience and migration of customers from branch to more convenient and lower cost channels including digital, ATM and Virtual Channels. • Con tinued focus on delivering on BB’s sustainability agenda with renewables finance delivering double-digit growth, driven by strong momentum within the IPP (Independent Power Producer) sub-sectors, as well as increased demand from commercial and industrial clients seeking to mitigate rising energy costs. • Con tinued improvement in digital capabilities, including the expansion of the new straight-through digital onboarding capability to cater for clients with up to four directors, representing over 80% of SME clients. • Impr oved production in Real Estate and Term Lending continuing from the second half of 2025. The following accolades were received during the year: • A frica’s Best Islamic Transaction Bank by the Euromoney Islamic Finance Awards 2026 • South Africa's Best Bank for SMEs for 2026 by Euromoney. BB South Africa continued 30 June 31 December Change Client franchise 2026 2025 % 2025 South Africa Active customers (thousands) 357.1 349.8 2 351.5 Digitally active customers (thousands) 214.8 207.3 4 210.6 Product holding per customer (number) 2.73 2.70 1 2.72
Page 116
114 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Financial performance Headline earnings increased by 10% to R2 397m (30 June 2025: R2 181m), driven by pre-provision profit growth of 6% to R3 937m (30 June 2025: R3 700m) and a 3% decrease in impairment charges. Gross loans and advances to customers grew by 8% to R161bn (30 June 2025: R149bn), reflecting Real Estate up 14%, Commercial Asset Finance up 7%, Working Capital Solutions up 7% and Term Loans up 5%. Deposits due to customers grew by 5% to R263bn (30 June 2025: R251bn) reflecting transactional balances up 10% while investment products grew 3%. Net interest income grew by 7% to R5 637m (30 June 2025: R5 264m), attributable to: • Ne t interest income on advances grew by 5%, with advances up 8% (averages up 7%), partially offset by margin compression from 3.85% to 3.80%, mainly from pricing pressure in Working Capital Solutions. • Ne t interest income on deposits grew by 10%, with deposits up 5% (averages up 8%) and margins increasing from 2.12% to 2.15% due to favourable mix. Non-interest income was up 6% to R2 303m (30 June 2025: R2 164m), driven by: • T ransactional revenue growth of 5% which included strong growth in International Banking and Forex partially offset by increasing volumes shifting to PayShap which has a lower price point for customers. • 5% lower Payment revenue mainly due to lower merchant acquiring turnover (down 4%) while cash volumes continued to decline (cash deposits down 7% and cash withdrawals down 11%). This was partially offset by higher turnover in Card Issuing (up 20%). • Incr eased lending fees related to a change in accounting treatment that has resulted in a release in revenue. Total revenue growth of 7% reduces to 6% excluding this change. Credit impairment charges decreased by 3% to R495m (30 June 2025: R508m) and the CLR decreased from 0.70% to 0.64%. The NPL ratio improved to 4.8% (30 June 2025: 5.6%), while the overall coverage ratio decreased marginally to 2.17% (30 June 2025: 2.71%), which reflects an improvement in the stage 3 book primarily driven by the write-off of aged fully impaired deals. Operating expenses increased by 7% to R4 003m (30 June 2025: R3 728m), mainly due to an increase in staff costs, higher equipment costs and continued investment in digital capabilities. Key business segments Commercial Commercial headline earnings growth in the first half of 2026 was primarily driven by lending (broad-based across sectors) and stronger NIR growth, while payment-related fee income declined following the exit of a high volume acquiring client resulting from a corporate action. SME SME delivered strong headline earnings growth in the first half of 2026 driven by deposits and faster NII growth. Lending balances growth was primarily driven in the Commercial Asset Finance (CAF) and Real Estate portfolios. Revenue growth was further supported by strong deposit inflows and higher overdraft fee income, partially offset by lower cash transaction volumes. Impairments were lower year-on-year following model improvements and recoveries. Business Banking for the interim reporting period ended BB South Africa continued
Page 117
115 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management BB Africa Regions BB AR delivered headline earnings of R346m (30 June 2025: R422m), down 18% (down 16% in CCY), with an RoE of 17.8% (30 June 2025: 17.4%). Key performance indicators for the period include the following: Gross loans and advances to customers increased by 8% (CCY: 16%) to R29bn while customer deposits increased by 5% (CCY: 13%) to R50bn. Net interest income decreased by 4% (up 1% in CCY) as margins contracted from 7.41% to 6.96%, due to lower interest rates in key markets. Non-interest income grew by 10% (CCY: 14%), reflecting strong customer acquisition and higher transaction activity. Forex income increased by 14% due to higher client volumes which grew by 12%. The AR franchise shows strong growth with active customers up by 5% to 136k, improvement in product holding per customer from 2.35 to 2.49, and deeper digital penetration with digitally active customer numbers increasing by 31% to 65k. Returns increased from 17.4% to 17.8%, mainly due to capital efficiency initiatives as headline earnings decreased year-on-year. Credit loss ratio increased from 0.29% to 0.58%, as the base included the benefit of once-off material recoveries. Cost-to-income ratio increased from 65.2% to 70.3%, impacted by revenue pressure whilst operating costs increased by 7% (CCY: 11%), reflecting ongoing investment in the franchise, inflationary pressures and once-off costs incurred during the period. 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 2 634 2 660 (1) 4 5 346 Pre-provision profit (Rm) 781 926 (16) (11) 1 822 Headline earnings (Rm) 346 422 (18) (16) 769 Credit loss ratio (%) 0.58 0.29 0.60 Cost-to-income ratio (%) 70.3 65.2 65.9 RoRWA (%) 1.95 1.86 1.86 RoA (%) 1.27 1.60 1.44 RoE (%) 17.8 17.4 17.6 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Business Banking for the interim reporting period ended
Page 118
116 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Business Banking for the interim reporting period ended Business profile BB AR offers a comprehensive suite of products and services to SMEs and commercial customers across ten banking entities in nine African markets. Various solutions are provided to meet customers’ transactional, borrowing, savings, protection and investment needs. Services are delivered through a multi-channel distribution network, including branch, self-service, agency banking and digital channels, underpinned by distinct CVPs and a tailored coverage model designed to meet the evolving needs of SME and commercial clients. Key customer segments • SMEs ar e served through a tiered coverage model, with dedicated relationship management for larger SMEs and broad-based service delivery for smaller SMEs through an extensive branch and agency banking network, underpinned by a digital-first self-service model. • Commer cial segment customers are serviced through a relationship-based model, with dedicated sales and service teams that provide tailored banking solutions such as trade finance, asset finance and working capital facilities. Business performance The business continued to deliver against strategic objectives, demonstrated by the following achievements: • Acceler ated customer acquisition and engagement, which drove growth in active customers and adoption of digital banking channels and customer engagement initiatives. BB Africa Regions continued • In vestment in digital capabilities, payments and trade solutions. • S treamlining lending and onboarding journeys to improve responsiveness to customer funding requirements. • Our expanding agency banking network strengthens our distribution reach and customer access across our footprint. This channel complements our BB AR proposition by enabling SMEs and commercial clients to conveniently access transactional banking and cash management services through a wider service network. • Car d acquiring performance driven by accelerated adoption of MobiTap within the SME segment, supported by the cost-effective nature of the solution and deeper penetration across strategic sectors. The following accolades were received in the year: • Bes t Trade Finance Bank 2025 by The Asian Banker Middle East and Africa Finance Awards Absa Bank Mauritius • Bes t Agriculture Financing Bank Zambia 2026 – Global Banking & Finance Awards • Absa Bank Kenya awarded 2025 Visa Awards – Runner up SME enablement Award in the payments value and penetration within the SME portfolio on Business Card propositions, and Best Bank in Islamic Banking by the Think Business Awards 2025 • Absa Bank Uganda named Green Financial Institution of the Year by National Environment Management Authority (NEMA) Sustainability Awards) 30 June 31 December Change Client franchise 2026 2025 % 2025 Africa Regions Active customers (thousands) 135.7 128.8 5 132.5 Digitally active customers (thousands) 65.4 50.1 31 60.2 Product holding per customer (number) 2.49 2.35 6 2.37
Page 119
117 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Financial performance Headline earnings decreased by 18% (down 16% in CCY) to R346m (30 June 2025: R422m), reflecting margin compression following declining interest rates across key markets, as well as normalisation of credit impairments from exceptionally low levels in the prior period. RoE at 17.8% is up 40bps year-on-year, supported by improved capital efficiency despite lower earnings. Gross loans and advances to customers grew 8% (CCY: 16%) to R29bn (30 June 2025: R27bn), underpinned by broad-based momentum across the SME and Commercial portfolios. Deposits due to customers grew by 5% (CCY: 13%) to R50bn (30 June 2025: R48bn), mainly driven by growth in transactional accounts (up 9% in CCY). Total income decreased by 1% (up 4% in CCY) to R2 634m (30 June 2025: R2 660m). • Ne t interest income declined by 4% (up 1% in CCY) to R1 963m (30 June 2025: R2 048m), attributable to: – Ne t interest income on advances grew by 16% in CCY, with advances up 8% and margin expanding from 4.33% to 4.76%. – Ne t interest income on deposits reduced by 6% in CCY, with deposits up 5% offset by margin compression from 7.61% to 7.17%. • Non-in terest income increased 10% (CCY: 14%) to R671m (30 June 2025: R612m), supported by higher transactional volumes, increased foreign exchange activity and growth in trade-related income. Credit impairment charges increased from R37m to R79m and the CLR increased from 0.29% to 0.58%, due to low levels in the prior period, which benefited from once-off recoveries. Asset quality remained resilient, with the CLR of 0.58% remaining well below the TTC range. The NPL ratio improved to 13.2% (30 June 2025: 16.3%), while the overall coverage ratio decreased marginally to 6.67% (30 June 2025: 8.77%). Operating expenses increased by 7% (CCY: 11%) to R1 853m (30 June 2025: R1 734m), reflecting ongoing investment in the franchise, inflationary pressures and once-off costs incurred during the period. Looking ahead Heading into the second half of 2026, BB will continue to execute its strategy aimed at delivering enhanced client experience and shareholder value. The key focus areas include: • C ustomer-led growth: The business continues to drive sustainable customer growth in priority segments and sectors while deepening primacy through increased ease of doing business, digitisation and superior customer experience. • D iversified pan-African business: Transitioning to a pan-African operating model capacitated by top talent to deliver on the BB strategy. • D rive excellence: Continued focus on simplifying key client journeys and processes, increasing digitisation and automation, driving digital adoption across segments and products, cost efficiency, productivity and capital optimisation. • N ew growth opportunities: Continued focus on cross border opportunities (both trade and non-interest revenue), opening up the China corridor and optimising relationships in the market to grow non-interest revenue opportunities. BB Africa Regions continued Business Banking for the interim reporting period ended
Page 120
118 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Credit loss ratio of 0.17% (30 June 2025: 0.17%) below the TTC range of 20–30 bps. Return on equity of 19.2%, down from 20.6% in the prior year, impacted by the headline earnings performance, while capital efficiency initiatives resulted in a benefit to returns. Cost-to-income ratio increased to 47.9% (30 June 2025: 47.4%) with negative JAWS of 1.1%, due to costs growing faster than income. Net interest margin contracted by 18bps from 2.37% to 2.19%, mainly driven by an adverse rate environment in AR and reduced lending and deposit margins in SA. Transactional Banking headline earnings down 13% (12% in CCY), driven by a decline in revenue (down 2%), higher credit impairments (up R89m) and an increase in costs of 6%. Total income increased by 3% mainly supported by client franchise revenue growth, with SA total income up 8% offset by AR down 3%. Non-interest income up 8% underpinned by a solid performance in Global Markets and higher net fee and commission income (up 3%), reflecting increased client activity and higher commitment fees in Investment Banking. Global Markets headline earnings up 9% on the back of revenue growth of 10%, while Investment Banking headline earnings up 8%, driven by revenue growth of 5% and lower credit impairments (down 5%). SA income up 8% and headline earnings up 13%, with positive JAWS of 6%. Gross customer advances 1 up 10% (12% in CCY) and customer deposits2 up 9% (10% in CCY). Headline earnings increased by 1% to R6 192m (30 June 2025: R6 109m, up 2% in CCY), driven by total income growth of 3% (5% in CCY), partially offset by higher credit impairment charges (up 16%, 29% in CCY) and higher operating expenses (up 5%, 6% in CCY). Corporate and Investment Banking for the interim reporting period ended 1 Ex cludes reverse repurchase agreements. 2 Ex cludes repurchase agreements. Headline earnings contribution (%) Jun 2026 24 Dec 2025 26 33 Transactional Banking Investment Banking Global Markets 35 Jun 2025 28 32 Revenue mix contribution (%) Jun 2026 60 Dec 2025 60 40 Net interest income Non interest income 40 Jun 2025 61 39 41 39 41
Page 121
119 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking for the interim reporting period ended 30 June 31 December Change CCY Salient features 2026 2025 % % 2025 Income (Rm) 18 238 17 639 3 5 36 681 Pre-provision profit (Rm) 9 503 9 283 2 4 19 458 Headline earnings (Rm) 6 192 6 109 1 2 12 690 Credit loss ratio (%) 0.17 0.17 0.21 Cost-to-income ratio (%) 47.9 47.4 47.0 RoRWA (%) 2.39 2.57 2.55 RoA (%) 0.78 0.87 0.84 RoA net of internal balances (%) 1.14 1.32 1.25 RoE (%) 19.2 20.6 20.6 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Business profile CIB provides innovative solutions to meet clients’ needs by delivering end-to-end relationship management and origination across specialist investment banking, transactional banking, financing, risk management, and advisory products and services. Our clients span various industry sectors, including public sector, infrastructure, power and renewables, oil and gas, mining and metals, financial institutions, non-banking financial institutions, agriculture, real estate, TMT (technology, media and telecoms), and consumer. These sectors are serviced by combining our in-depth product knowledge with deep local insight, supported by an extensive regional footprint across Africa and a well-established international presence. Our offering includes Transactional Banking solutions, Global Markets capabilities and Investment Banking expertise. CIB aims to build a sustainable, trustworthy business that supports clients in achieving their strategic ambitions, thereby creating shared growth for clients, employees and communities. Key business areas We partner with clients to develop and execute innovative solutions through end-to-end relationship management and origination activities across our suite of products and services. • T ransactional Banking – delivers integrated financing and transactional solutions, including trade and working capital, cash management, payments, liquidity and card services to institutional, corporate and public sector clients across Africa. Investor Services further strengthens the franchise through a full suite of custody and trustee services, enhancing client value. • Global Mark ets – connects corporate and institutional clients to global markets through leading sales, research, pricing and risk solutions across all major asset classes and products, empowering clients to manage exposure and seize opportunity across local and international markets. • I nvestment Banking leverages our deep sector knowledge and advisory, financing, and capital-raising expertise, tailoring bespoke solutions to enable our clients' strategic goals. It also includes Real Estate Finance and Equity Investments.
Page 122
120 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking for the interim reporting period ended Corporate and Investment Banking SA 30 June 31 December Change 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 6 365 6 062 5 12 570 Non-interest income 4 286 3 755 14 8 375 Total income 10 651 9 817 8 20 945 Credit impairment charges (353) (341) 4 (983) Operating expenses (5 530) (5 374) 3 (11 120) Other expenses (130) (114) 14 (836) Operating profit before income tax 4 638 3 988 16 8 006 Headline earnings 3 732 3 298 13 7 156 Operating performance (%) Net interest margin on average interest-bearing assets 1.61 1.70 1.69 Credit loss ratio 0.13 0.14 0.19 Non-interest income as % of income 40.2 38.2 40.0 Cost-to-income ratio 51.9 54.7 53.1 Key statement of financial position items (Rm) Loans and advances to customers 515 814 470 616 10 490 277 Loans and advances to banks 49 052 44 576 10 52 661 Total loans and advances 564 866 515 192 10 542 938 Deposits due to customers 569 132 522 462 9 547 593 Deposits due to banks 141 210 121 639 16 133 593 Total deposits 710 342 644 101 10 681 186 Financial performance (%) RoA 0.55 0.56 0.56 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Business performance CIB delivered 1% growth in earnings. CIB continued to evolve, completing the refresh of the operating model along with new leadership appointments to strengthen execution and delivery. The quality and depth of the client franchise was strengthened through further sectorisation, improved client segmentation, dedicated service teams and strategic coverage appointments aimed at improving client relevance and execution. The international corridor strategy continued to progress, with Prudential Authority approval to establish a Dubai office marking an important milestone, while we continue to monitor developments in the Middle East and the broader operating environment. With disciplined execution against our refreshed strategic priorities and a continued ability to navigate a complex operating environment, the business maintained its focus on delivering sustainable value for clients and investors. Financial performance Headline earnings increased by 1% to R6 192m (30 June 2025: R6 109m, up 2% in CCY), with total income up 3% to R18 238m (30 June 2025: R17 639m, up 5% in CCY), partially offset by higher credit impairments, up 16% to R577m (30 June 2025: R499m, up 29% in CCY), and operating expenses up 5% to R8 735m (30 June 2025: R8 356m, up 6% in CCY). RoE decreased to 19.2% (30 June 2025: 20.6%). The overall client franchise performance improved by 6% (up 7% in CCY) from the prior year, across key sectors such as Non-Banking Financial Institutions, Public Sector, Power and Renewables, Mining and Metals and Agriculture. Momentum in non-interest income was maintained, however, this was partially offset by margin compression in a lower rate environment. Net interest income increased marginally by 1% to R10 890m (30 June 2025: R10 826m, up 2% in CCY), driven by growth in customer deposits 2 of 9% (10% in CCY), and growth in gross customer advances1 of 10% (12% in CCY). However, margins contracted from 2.37% to 2.19%, most notably in Transactional 1 Ex cludes reverse repurchase agreements. 2 Ex cludes repurchase agreements.
Page 123
121 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking for the interim reporting period ended Corporate and Investment Banking SA 30 June 31 December Change 2026 2025 % 2025 Condensed statement of comprehensive income (Rm) Net interest income 6 365 6 062 5 12 570 Non-interest income 4 286 3 755 14 8 375 Total income 10 651 9 817 8 20 945 Credit impairment charges (353) (341) 4 (983) Operating expenses (5 530) (5 374) 3 (11 120) Other expenses (130) (114) 14 (836) Operating profit before income tax 4 638 3 988 16 8 006 Headline earnings 3 732 3 298 13 7 156 Operating performance (%) Net interest margin on average interest-bearing assets 1.61 1.70 1.69 Credit loss ratio 0.13 0.14 0.19 Non-interest income as % of income 40.2 38.2 40.0 Cost-to-income ratio 51.9 54.7 53.1 Key statement of financial position items (Rm) Loans and advances to customers 515 814 470 616 10 490 277 Loans and advances to banks 49 052 44 576 10 52 661 Total loans and advances 564 866 515 192 10 542 938 Deposits due to customers 569 132 522 462 9 547 593 Deposits due to banks 141 210 121 639 16 133 593 Total deposits 710 342 644 101 10 681 186 Financial performance (%) RoA 0.55 0.56 0.56 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Corporate and Investment Banking AR Corporate and Investment Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 4 525 4 764 (5) (1) 9 559 10 890 10 826 1 2 22 129 3 062 3 058 0 2 6 177 7 348 6 813 8 9 14 552 7 587 7 822 (3) 0 15 736 18 238 17 639 3 5 36 681 (224) (158) 42 >100 (286) (577) (499) 16 29 (1 269) (3 205) (2 982) 7 12 (6 103) (8 735) (8 356) 5 6 (17 223) (110) (106) 4 7 (227) (240) (220) 9 11 (1 063) 4 048 4 576 (12) (10) 9 120 8 686 8 564 1 2 17 126 2 460 2 811 (12) (11) 5 534 6 192 6 109 1 2 12 690 4.21 4.54 4.45 2.19 2.37 2.33 0.43 0.31 0.28 0.17 0.17 0.21 40.4 39.1 39.3 40.3 38.6 39.7 42.2 38.1 38.8 47.9 47.4 47.0 96 154 91 366 5 13 95 350 611 968 561 982 9 10 585 627 15 845 8 142 95 >100 8 754 64 897 52 718 23 26 61 415 111 999 99 508 13 22 104 104 676 865 614 700 10 12 647 042 120 577 119 056 1 9 121 619 689 709 641 518 8 9 669 212 10 335 3 503 >100 >100 5 714 151 545 125 142 21 22 139 307 130 912 122 559 7 15 127 333 841 254 766 660 10 11 808 519 2.13 2.60 2.37 0.78 0.87 0.84 Banking, which was impacted by the lower average interest rate environment in AR. Lending margins in SA also contracted in a competitive environment. Non-interest income increased by 8% to R7 348m (30 June 2025: R6 813m, up 9% in CCY), due to growth in Global Markets trading income and net fee and commission income. Growth in fee income was mainly driven by Investment Banking, which saw higher commitment fees and improved fee generation on the back of increased client activity and lending volumes. The increase in credit impairments was driven by higher performing book charges in both SA and AR, partially offset by lower stage 3 charges, particularly in SA. The CLR at 0.17% and 0.19% excluding advances to banks (30 June 2025: 0.17% and 0.19%) was flat year-on-year and below the through-the-cycle guidance range (20–30 bps). The total coverage ratio decreased to 1.16% (30 June 2025: 1.67%), due to write-offs of high coverage names, whilst performing coverage ratio remained stable at 0.41% . Operating expenses growth was well contained at 5% (up 6% in CCY), reflecting tight cost management. The increase was primarily driven by inflation across several markets, coupled with investment spend on talent. Gross customer loans and advances 1 of R526.9bn (30 June 2025: R478.9bn) were up 10% (12% in CCY), with SA up 11%, driven by foreign currency loans (up 22%), term loans (up 11%), overdrafts (up 76%), Real Estate Finance commercial mortgages (up 11%), and specialised finance loans (up 24%). AR customer loans and advances 1 growth was 4% (12% in CCY), with underlying growth driven by term lending and trade loans, largely offset by foreign exchange headwinds. Customer deposits2 were up 9% to R660.2bn (30 June 2025: R607.2bn, up 10% in CCY), with SA up 11% across deposit classes, most notably fixed deposits (up 26%), call deposits (up 19%) and notice deposits (up 10%), while cheque deposits declined (down 6%). AR customer deposit 2 balances increased by 1% (9% in CCY), reflecting higher corporate client balances and improved liquidity across key markets. 1 Ex cludes reverse repurchase agreements. 2 Ex cludes repurchase agreements.
Page 124
122 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Transactional Banking Investment Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 Condensed statement of comprehensive income (Rm) Net interest income 5 362 5 518 (3) (1) 11 195 4 599 4 542 1 3 9 314 Non-interest income 1 666 1 632 2 3 3 245 653 483 35 36 1 522 Total income 7 028 7 150 (2) 0 14 440 5 252 5 025 5 6 10 836 Credit impairment charges (123) (34) >100 <(100) (254) (435) (456) (5) (3) (925) Operating expenses (4 479) (4 223) 6 8 (8 641) (1 753) (1 723) 2 3 (3 580) Other expenses (77) (88) (13) (11) (507) (4) (8) (50) (49) (98) Operating profit before income tax 2 349 2 805 (16) (15) 5 038 3 060 2 838 8 9 6 233 Headline earnings 1 508 1 735 (13) (12) 3 350 2 572 2 386 8 9 5 185 Operating performance (%) Net interest margin on average interest-bearing assets 2.20 2.40 2.35 2.18 2.33 2.30 Credit loss ratio 0.25 0.07 0.25 0.22 0.25 0.25 Non-interest income as % of income 23.7 22.8 22.5 12.4 9.6 14.0 Cost-to-income ratio 63.7 59.1 59.8 33.4 34.3 33.0 Key statement of financial position items (Rm) Loans and advances to customers 87 716 83 730 5 8 85 120 417 254 374 352 11 13 398 993 Loans and advances to banks 17 559 18 149 (3) (2) 25 405 2 898 2 872 1 6 2 771 Total loans and advances 105 275 101 879 3 6 110 525 420 152 377 224 11 13 401 764 Deposits due to customers 451 897 433 054 4 6 441 757 6 828 4 868 40 40 7 112 Deposits due to banks 46 197 38 210 21 22 37 911 – – – – – Total deposits 498 094 471 264 6 8 479 668 6 828 4 868 40 40 7 112 Financial performance (%) RoA 0.62 0.78 0.71 1.15 1.16 1.22 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Corporate and Investment Banking for the interim reporting period ended
Page 125
123 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Transactional Banking Investment Banking 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 Condensed statement of comprehensive income (Rm) Net interest income 5 362 5 518 (3) (1) 11 195 4 599 4 542 1 3 9 314 Non-interest income 1 666 1 632 2 3 3 245 653 483 35 36 1 522 Total income 7 028 7 150 (2) 0 14 440 5 252 5 025 5 6 10 836 Credit impairment charges (123) (34) >100 <(100) (254) (435) (456) (5) (3) (925) Operating expenses (4 479) (4 223) 6 8 (8 641) (1 753) (1 723) 2 3 (3 580) Other expenses (77) (88) (13) (11) (507) (4) (8) (50) (49) (98) Operating profit before income tax 2 349 2 805 (16) (15) 5 038 3 060 2 838 8 9 6 233 Headline earnings 1 508 1 735 (13) (12) 3 350 2 572 2 386 8 9 5 185 Operating performance (%) Net interest margin on average interest-bearing assets 2.20 2.40 2.35 2.18 2.33 2.30 Credit loss ratio 0.25 0.07 0.25 0.22 0.25 0.25 Non-interest income as % of income 23.7 22.8 22.5 12.4 9.6 14.0 Cost-to-income ratio 63.7 59.1 59.8 33.4 34.3 33.0 Key statement of financial position items (Rm) Loans and advances to customers 87 716 83 730 5 8 85 120 417 254 374 352 11 13 398 993 Loans and advances to banks 17 559 18 149 (3) (2) 25 405 2 898 2 872 1 6 2 771 Total loans and advances 105 275 101 879 3 6 110 525 420 152 377 224 11 13 401 764 Deposits due to customers 451 897 433 054 4 6 441 757 6 828 4 868 40 40 7 112 Deposits due to banks 46 197 38 210 21 22 37 911 – – – – – Total deposits 498 094 471 264 6 8 479 668 6 828 4 868 40 40 7 112 Financial performance (%) RoA 0.62 0.78 0.71 1.15 1.16 1.22 The segment split numbers have been restated. Refer to the reporting changes overview in note 13. Global Markets CIB Other 30 June 31 December 30 June 31 December Change CCY Change CCY 2026 2025 % % 2025 2026 2025 % % 2025 910 751 21 18 1 586 19 15 27 32 34 5 056 4 696 8 9 9 800 (27) 2 <(100) <(100) (15) 5 966 5 447 10 10 11 386 (8) 17 <(100) <(100) 19 1 (3) >100 <(100) (4) (20) (6) >100 >100 (86) (2 615) (2 478) 6 7 (5 190) 112 68 65 71 188 (60) (61) (2) (2) (287) (99) (63) 57 61 (171) 3 292 2 905 13 13 5 905 (15) 16 <(100) <(100) (50) 2 160 1 982 9 9 4 210 (48) 6 <(100) <(100) (55) n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a 84.7 86.2 86.1 n/a n/a n/a 43.8 45.5 45.6 n/a n/a n/a 107 098 103 900 3 3 101 594 (100) – 100 >100 (80) 43 254 30 441 42 46 31 917 1 186 1 256 (6) 4 1 322 150 352 134 341 12 13 133 511 1 086 1 256 (14) (5) 1 242 230 982 203 595 13 14 220 343 2 1 100 >100 – 105 348 86 932 21 22 101 396 – – – – – 336 330 290 527 16 16 321 739 2 1 100 >100 – 0.68 0.73 0.69 n/a n/a n/a Corporate and Investment Banking 30 June 31 December Change CCY 2026 2025 % % 2025 10 890 10 826 1 2 22 129 7 348 6 813 8 9 14 552 18 238 17 639 3 5 36 681 (577) (499) 16 29 (1 269) (8 735) (8 356) 5 6 (17 223) (240) (220) 9 11 (1 063) 8 686 8 564 1 2 17 126 6 192 6 109 1 2 12 690 2.19 2.37 2.33 0.17 0.17 0.21 40.3 38.6 39.7 47.9 47.4 47.0 611 968 561 982 9 10 585 627 64 897 52 718 23 26 61 415 676 865 614 700 10 12 647 042 689 709 641 518 8 9 669 212 151 545 125 142 21 22 139 307 841 254 766 660 10 11 808 519 0.78 0.87 0.84 Corporate and Investment Banking for the interim reporting period ended
Page 126
124 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Headline earnings (Rm and change %) Transactional Banking SA AR -30% 18% Jun 2026 Jun 2025 780 1 120 1 735 1 508 728615 Global Markets SA AR 1% 19% Jun 2026 Jun 2025 1 120 1 108 1 982 2 160 1 040874 Investment Banking SA AR -4% 12% Jun 2026 Jun 2025 560 582 2 386 2 572 2 0121 804 YoY % change (Jun 2026 vs Jun 2025) -13% 9% 8% Total income (Rm and change %) 5 025 5 252 Investment Banking 5 447 5 966 Global Markets 7 150 7 028 Transactional Banking Jun 2025 Jun 2026 YoY % change (Jun 2026 vs Jun 2025) -2% 10% 5% Corporate and Investment Banking for the interim reporting period ended Transactional Banking Transactional Banking headline earnings decreased by 13% to R1 508m (30 June 2025: R1 735m, down 12% in CCY), with South Africa up 18% to R728m (30 June 2025: R615m), while AR was down 30% to R780m (30 June 2025: R1 120m, down 29% in CCY). The decline was mainly driven by a 2% decrease in income to R7 028m (30 June 2025: R7 150m, flat in CCY), due to lower interest rates in key markets and a more competitive operating environment. An R89m increase in impairments and cost growth of 6% (up 8% in CCY) also had an adverse impact on headline earnings. Net interest income decreased by 3% to R5 362m (30 June 2025: R5 518m, down 1% in CCY) as lower interest rates and margin compression offset average balance growth (average total gross advances up 1% while average total deposits were up 5%). Non-interest revenue increased by 2% to R1 666m (30 June 2025: R1 632m, up 3% in CCY), underpinned by higher transaction volumes and client activity across the franchise offset by increased pricing competition. Continued balance sheet growth, deeper client engagement, and the landmark Government Employees Pension Fund (GEPF) custody mandate win, positions the franchise for sustainable medium-term growth. Performance by product: • Cash Manag ement was flat at R4 920m (up 2% in CCY), benefiting from growth in average customer deposit balances, partially offset by lower interest rates in key markets, particularly Ghana and changes in the South African deposit mix. Transactions income benefited from increased client activity and higher volumes but saw continued pricing competition. • T rade and Working Capital decreased by 6% to R2 108m (down 2% in CCY). Trade Finance growth in AR was offset by lower Financial Institutions trade loan balances in SA, while Working Capital and Supply Chain Finance reflected lower utilisation in AR and subdued activity in selected markets.
Page 127
125 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking for the interim reporting period ended Credit impairments increased by 261% to R123m (30 June 2025: R34m), resulting in the CLR increasing 18bps to 0.25% (30 June 2025: 0.07%). The increase in impairments was driven by AR (up 210%), mainly due to the non-recurrence of releases in the prior year and increased exposures on the performing book. In SA, impairments were down year-on-year, mainly driven by lower performing book charges due to improved portfolio construct and lower single-name stage 3 charges. Operating expenses grew by 6% to R4 479m (30 June 2025: R4 223m, up 8% in CCY), mainly driven by AR (up 10%, up 14% in CCY), due to inflation and investment across several markets. SA costs remained well-contained, growing only 3%. Awards earned by CIB in the first half of 2026 included the following: • Global F inance – World’s Best Trade Finance Providers 2026: Best Trade Finance Bank in South Africa, Botswana and Mozambique. Global Markets Global Markets headline earnings increased by 9% to R2 160m (30 June 2025: R1 982m), with SA up 19% to R1 040m (30 June 2025: R874m) and AR up 1% to R1 120m (30 June 2025: R1 108m). Income grew by 10% to R5 966m (30 June 2025: R5 447m) due to increased client activity, higher flow volumes and effective risk management across key markets. SA income increased by 19% to R3 213m (30 June 2025: R2 708m), while AR grew 1% to R2 753m (30 June 2025: R2 739m, up 2% in CCY), reflecting the benefits of a diversified client franchise. The Global Markets performance was driven by: • F ixed Income, Credit and Currency up 11% to R5 162m (30 June 2025: R4 648m): Despite challenging market conditions and periods of heightened volatility, revenue growth was driven by demand for bespoke client solutions, increased activity in longer-dated transactions and client flows across rates and foreign exchange markets. The business continued to leverage its regional footprint and distribution capabilities across markets. • E quities down 6% to R687m (30 June 2025: R727m): The decrease reflects a higher prior year comparative period that benefited from significant transaction-related revenues in Corporate Equity Derivatives. Despite this, underlying performance reflected continued client acquisition, growth in financing balances and elevated trading activity amid increased market volatility. Continued momentum in Research, driven by broadened research coverage, further supported performance. Client diversification and disciplined risk management underpinned performance during a period of heightened market uncertainty. • Commodities up 60% to R117m (30 June 2025: R73m): Commodities performance was driven by Linear Metals trading, supported by client flow activity, elevated volatility and market dislocations which generated trade and leasing opportunities. Exchange-traded products remained the primary revenue driver. Operating expenses increased by 6% to R2 615m (30 June 2025: R2 478m, up 7% in CCY), driven by investment in talent to drive the business. The business received several accolades in the first half of 2026, including: • JSE Spir e Awards 2026: Awarded Best Forex House; Best Structured Commodity Financing house; Best Market Making Team for On-screen listed FX derivatives, Forex and Forex Futures, Forex Options, Government Bonds; and Best Research Team for Fixed Income and Forex. • F irst Place for Young Analyst, Diversified Industrial, Healthcare, Oil and Gas, Credit Analysis, Fixed Interest, International Non-Equities and Fixed Income Securities at the Financial Mail Top Analyst Awards. Global Markets gross income split (Rm and change %) 73 117 Commodities 727 687 Equities 4 648 5 162 Fixed Income, Credit and Currency Jun 2025 Jun 2026 11% -6% 60% YoY % change (Jun 2026 vs Jun 2025) Transactional Banking continued
Page 128
126 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking for the interim reporting period ended Daily Markets income distribution (Rm) (Frequency of days per profit and loss rand value) 70% 60% 50% 40% 30% 20% 10% 0% Days < -30 -30 to < 0 0 to < 30 30 to < 60 60 to < 90 90 to < 120 > 120 Jun 2025 Jun 2026 Income (Rm) Number of Days Rm < -30 -30 to < 0 0 to < 30 30 to < 60 60 to < 90 90 to < 120 > 120 2026 1 3 38 51 25 4 1 2025 0 3 38 59 19 3 0 Global Markets continued
Page 129
127 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Corporate and Investment Banking for the interim reporting period ended Investment Banking Jun 2025 Jun 2026 YoY % change (Jun 2026 vs Jun 2025) Investment Banking headline earnings split (Rm and change %) 19 Equity Investments 406 353 Real Estate Finance 1 960 2 199 Investment Banking Division 21 12% -13% -10% Investment Banking headline earnings increased by 8% to R2 572m (30 June 2025: R2 386m, up 9% in CCY), mainly driven by income growth of 5% to R5 252m (30 June 2025: R5 025m, up 6% in CCY), supported by balance sheet growth and fee income generation, lower credit impairments (down 5%, down 3% in CCY) and well-contained costs (up 2%, up 3% in CCY). SA headline earnings increased by 12% to R2 012m (30 June 2025: R1 804m) while AR declined by 4% (up 1% in CCY) to R560m (30 June 2025: R582m). Net interest income grew by 1% to R4 599m (30 June 2025: R4 542m, up 3% in CCY) benefiting from increased lending volumes, partly offset by margin compression. Margins across Investment Banking declined 15bps to 2.18% (30 June 2025: 2.33%) due to pricing competition and loan book mix offsetting balance sheet expansion in SA, while AR margin was impacted by the declining interest rate environment. Non-interest income was up 35% to R653m (30 June 2025: R483m, up 36% in CCY) due to higher commitment fees and improved fee generation on the back of increased client activity and capital raising activities. Sustainable Finance continued to gain momentum, with R21.8bn of deals arranged year-to-date. The Equity Investments portfolio continued to decline in accordance with the strategy of exiting legacy business. Credit impairments decreased by 5% to R435m (30 June 2025: R456m, down 3% in CCY) and the CLR declined to 0.22% (30 June 2025: 0.25%), as lower charges in the Investment Banking Division of R213m (30 June 2025: R368m) were partially offset by higher impairment charges in Real Estate Finance of R223m (30 June 2025: R88m). Operating expenses were well-contained, increasing by 2% to R1 753m (30 June 2025: R1 723m, up 3% in CCY), reflecting tight cost management, as investment spend was absorbed through productivity initiatives. CIB received several accolades celebrating innovative deal-making in the first half of 2026, including: • Bes t Bank for Sustainable Finance: Africa, Impact Investing, Sustainable Project Finance, Green Bonds at the Global Finance: Sustainable Finance Awards • Bes t DCM Bank and Best Investment Bank: Ghana and Kenya at the Global Finance Awards • Bes t Investment Bank: South Africa and Ghana and Best Innovative Bank: Kenya and Mauritius at the World Economic Awards Looking ahead Looking ahead to 2026, CIB will accelerate execution of its refreshed pan-African strategy, with a clear focus on strengthening its competitive position and deepening relevance to clients across priority markets. The business will concentrate on high-growth sectors and client segments, scale its core franchises, and leverage its sector expertise, global connectivity, talent and differentiated capabilities to capture emerging opportunities and respond to evolving client needs. Through disciplined execution and strategic investment, CIB is well-positioned to reinforce its role as the preferred banking partner for clients and to deliver sustainable long-term value for investors. Areas of strategic focus include: • Sus tainable returns and revenue growth: We will continue to drive sustainable returns and quality revenue growth across our markets through disciplined capital allocation, targeted client focus, and continued cost resilience. • D isciplined execution: We will maintain a rigorous focus on capital and cost discipline and execution excellence to strengthen profitability and support resilient performance through market cycles. • Capability building: We will scale priority capabilities in global markets, leverage finance, principal investments, advisory, markets financing and originate-to-distribute solutions to grow high-quality fee income and deepen client relevance. • S trategic expansion: We will pursue disciplined expansion across priority African regions and selected international corridors, strengthening our ability to connect clients to growth opportunities and reinforce our pan-African franchise.
Page 130
128 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segmen t performance Risk and capital management Head Office, Treasury and other operations for the interim reporting period ended Financial performance Head Office, Treasury and other operations improved to a headline loss of R234m for 2026 (30 June 2025: R489m loss). The year-on-year movement for earnings reflects the following material items: • Higher revenue in Treasury South Africa due to a favourable impact year-on-year on asset-liability management and realised gains from the disposal of bonds; partially offset by a lower rates environment in the AR markets reducing yields earned on the liquid asset portfolio; R665m in 2026 (30 June 2025: R641m). • R eversal of sovereign portfolio credit impairments mainly from prior period, resulting in a year-on-year improvement of R91m compared to the prior year. • Oper ating expenses improved during the period by R146m compared to the prior year, primarily driven by enhancements to the transfer pricing charge methodology buoyed by various cost initiatives. • Other expenses improvement of R301m from the prior period mainly due to non-headline impairments. Current year impairments include an assessment of internally generated intangible assets in line with Group strategy of R200m in 2026 (30 June 2025: Rnil) and the Corporate Real Estate Consolidation Project of R88m in 2026 (30 June 2025: R15m) offset by the non-recurrence in hyperinflated asset balances in Ghana (non-headline), which is Rnil in 2026 (30 June 2025: R635m). Head Office 30 June 31 December 2026 2025 Change % 2025 Rm Rm Rm Statement of comprehensive income Net interest income 374 463 (19) 615 Non-interest income 291 178 63 115 Total income 665 641 4 730 Credit impairment charges 50 (41) >100 (480) Operating expenses (406) (552) (26) (1 835) Other expenses (672) (973) (31) (2 531) Operating profit before income tax (363) (925) (61) (4 116) Tax expenses (109) 6 <(100) 622 Profit for the reporting period (472) (919) (49) (3 494) Headline earnings (234) (489) (52) (2 154) The segment split numbers have been restated. Refer to the reporting changes overview in note 13.
Page 131
Risk and capital management 130 K ey performance metrics 131 Ov erview of risk weighted assets 132 Capital and liquidity risk 133 Funding structure 133 Funding sources by product 134 Capital risk 135 Capital adequacy 136 Capital supply 137 Economic capital 137 I nterest rate risk in the banking book 129Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026
Page 132
130 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk and capital management for the interim reporting period ended Key performance metrics Common equity tier 1 (CET1) ratio1 • T he CET1 capital ratio remained above the upper end of the Board-approved target range and well above minimum regulatory requirements. • T he liquidity position remained strong, with liquidity metrics comfortably within risk appetite and above minimum regulatory requirements. • Impr oved new business performance across the Personal and Private Banking (PPB) South Africa portfolios contributed to a reduction in both the credit loss ratio (CLR) and the performing book coverage ratio. • T he stage 3 coverage ratio decreased due to single-name write-offs and the default of Corporate and Investment Banking (CIB) counterparties with relatively lower levels of coverage. This was partially offset by additional provisions raised in the PPB South Africa secured lending portfolios for ageing accounts within the legal book. • T he Group continued to actively manage interest rate risk within its approved risk appetite. • Oper ational risk losses increased during the period, largely attributable to an increase in digital fraud-related incidents in PPB South Africa. Enhanced oversight and response mechanisms have been implemented to strengthen the Group's ability to remain within risk appetite and to respond to the evolving fraud threat landscape. 12.8% June 2025: 12.5% Economic capital (EC) coverage 1.7% June 2025: 1.5% Leverage ratio1 7.5% June 2025: 7.7% Liquidity coverage ratio (LCR)2 125.2% June 2025: 129.0% Net stable funding ratio (NSFR) 117.3% June 2025: 117.2% Credit loss ratio (CLR) 0.94% June 2025: 1.00% Stage 3 ratio on gross loans and advances 5.3% June 2025: 5.9% Stage 1 and stage 2 coverage ratio 0.9% June 2025: 1.0% Stage 3 coverage ratio 45.5% June 2025: 46.9% Banking book net interest income (NII) sensitivity for a 2% downward shock in interest rates (R2 401m) June 2025: (R2 342m) Operational risk losses R369m June 2025: R240m 1 Includes unappr opriated profits. 2 T he Group LCR reflects an aggregation of the Bank LCR and the AR LCR. For this purpose, a simple average of the relevant three month-end data points is used in AR, noting that the AR LCR is capped at 100% per the minimum regulatory requirements. For the Bank, the LCR was calculated as a simple average of 90 calendar-day LCR observations.
Page 133
131 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk and capital management for the interim reporting period ended Overview of risk weighted assets The following table provides the RWAs per risk type and the associated minimum capital requirements: June 2026 RWA June 2025 RWA1 December 2025 RWA1 June 2026 Minimum capital requirement2 Group Rm Rm Rm Rm Credit risk3 948 333 924 742 940 387 128 025 Market risk 67 552 57 108 61 117 9 120 Operational risk4 216 985 218 049 209 955 29 293 Threshold items 20 020 22 045 20 323 2 703 Total 1 252 890 1 221 944 1 231 782 169 141 June 2026 RWA June 2025 RWA1 December 2025 RWA1 June 2026 Minimum capital requirement2 Absa Bank5 Rm Rm Rm Rm Credit risk3 607 020 563 167 615 354 81 948 Market risk 40 627 35 670 32 921 5 485 Operational risk4 139 053 116 418 132 075 18 772 Threshold items 9 113 10 507 9 374 1 230 Total 795 813 725 762 789 724 107 435 On 1 July 2025, the Basel III finalisation regulations came into effect, and the balances from December 2025 were calculated on this basis. Refer to Pillar 3 report for more detail on RWAs per risk type. 1 T he June 2025 and December 2025 figures were revised to align with the final regulatory submissions. 2 T he 2026 minimum total regulatory capital adequacy requirement of 13.5% includes the capital conservation buffer, Pillar 2A, PCN CCyB and the D-SIB add-on but excludes the bank specific individual capital requirement (Pillar 2B add-on) as required by regulatory guidance. 3 Cr edit risk includes investment risk, counterparty credit risk, central counterparty clearing risk, credit valuation adjustment risk and securitisation risk. 4 Includes se ttlement risk and non-customer assets. 5 Absa Bank Limited includes subsidiary undertakings, special-purpose entities, joint ventures, associates, and offshore holdings.
Page 134
132 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk and capital management for the interim reporting period ended Capital and liquidity risk The risk and related constraints, which support the effective management of the Group’s financial resources, among others, capital, liquidity and pension, critical to meeting the Group’s strategic objectives. This includes pension risk as a risk in the event that a capital injection is required with respect to defined benefit plans. Liquidity risk The risk that the Group is unable to meet its contractual or contingent liquidity obligations or that it does not have the appropriate amount, tenor and composition of funding to support its assets. June December Key risk metrics 2026 2025 2025 Sources of liquidity (Rbn) 405.0 366.7 427.7 NSFR (%) 117.3 117.2 117.2 LCR (%)1 125.2 129.0 127.4 Loan-to-deposit ratio (%)2 78.8 79.3 79.0 Loans and advances to customers and banks (Rbn) 1 488.9 1 378.3 1 411.8 South Africa 1 266.8 1 161.5 1 191.2 AR 222.1 216.8 220.6 Deposits from customers and banks (including debt funding) (Rbn) 1 889.8 1 738.0 1 787.2 South Africa 1 582.0 1 428.2 1 472.9 AR 307.8 309.8 314.3 • Liquidity risk position: – T he Group’s liquidity risk position remained healthy and key liquidity metrics were within risk appetite and above the minimum regulatory requirements. – T he Group maintained a high-quality liquid asset (HQLA) buffer in excess of the minimum regulatory requirements, based on stress testing performed, to absorb potential volatility in the liquidity position. – T he money market surplus, post the gold and foreign exchange contingency reserve account (GFECRA) liquidity injection into the market, contributed towards Absa Bank’s healthy liquidity position. – T he Group’s foreign currency liquidity position remained robust and flexible, with adequate diversified United States dollar (USD) funding available to support the USD asset base and planned asset growth. – All banking subsidiaries r emained self-sufficient in terms of local currency liquidity, with limited reliance on USD working capital support from the Group. • Short -term balance sheet structure and liquidity buffers: – T he Group’s sources of liquidity amounted to 27.6% (June 2025: 26.2%) of deposits from customers. The Group continued to maintain a diversified HQLA portfolio, thereby maintaining a 90-day average HQLA at R331.8bn (June 2025: R287.3bn). – L oan growth was funded by growth in customer deposits and supported by raising wholesale funding, of appropriate tenor, ensuring a sustainable and diverse funding base. – Giv en the surplus liquidity in the market post GFECRA, the cost of wholesale funding in the domestic market is at the lowest levels seen in the past two years. The cost of shorter dated wholesale funding from financial institutions may increase in future as the Net Stable Funding Ratio (NSFR) regulatory benefit is phased out by 1 January 2028. Absa Bank continues to observe good demand for wholesale funding from corporate and institutional clients, despite lower pricing levels, and reliance on wholesale funding was managed appropriately to support asset growth. – T he Group consistently maintained an LCR buffer above 100% and used its Internal Liquidity Stress Metric Framework to determine the amount of HQLA required to be held to meet internally defined stress requirements. 1 T he Group LCR reflects an aggregation of the Bank LCR and the AR LCR. For this purpose, a simple average of the relevant three month-end data points is used in AR, noting that the AR LCR is capped at 100% per the minimum regulatory requirements. For the Bank, the LCR was calculated as a simple average of 90 calendar-day LCR observations. 2 T he methodology used to calculate the loan-to-deposit ratio includes loans and advances to banks and is based on average balances and not spot balances as disclosed per the Group financial statements.
Page 135
133 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk and capital management for the interim reporting period ended • L ong-term balance sheet structure: – T he Group continued to strengthen and diversify its funding sources to maintain a sustainable funding structure as well as adequate regulatory ratios (LCR and NSFR), while optimising the cost of funding. – F rom 1 January 2026, South Africa’s Systemically Important Financial Institutions (SIFIs) are required to issue Flac instruments to strengthen their loss-absorbing capacity and support orderly resolution. The Flac requirement will be phased in from 2026 to 2031, and The Group intends to replace maturing senior debt with Flac issuances. The Group launched its inaugural Flac bonds in February 2026, and in H1 2026 raised approximately R8bn Flac, all linked to ZARONIA. The Flac instruments priced marginally wider than senior bank paper. – T he Group also raised R3.3bn of additional tier 1 capital and R2.4bn of tier 2 capital in the domestic market, at the most constructive levels seen since these instruments were introduced. Furthermore, The Group successfully issued USD300m of additional tier 1 capital notes on the London Stock Exchange in H1 2026. The notes are perpetual and callable after seven years, achieving only a marginal pricing premium relative to more traditional five-year callable structures. The longer call profile reduces refinancing risk and helps alleviate future maturity concentration. • Div ersification: – T he Group had a well-diversified deposit base and concentration risk was managed within internal and regulatory guidelines. – T he Group managed funding sources to maintain a wide diversity of depositors, products, tenors and currencies. Funding structure Funding is sourced from a variety of depositors representing a diversity of economic sectors, with a wide range of products and maturities. Funding sources by product The graphs below show the Group’s funding sources: Jun 2025Jun 2026 52 Dec 2025 Deposits from banks Demand deposts Term Deposits Debt funding 24 13 11 53 24 12 11 52 25 13 10 Liquidity risk continued
Page 136
134 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk and capital management for the interim reporting period ended Capital risk The risk that the Group has an insufficient level or inappropriate composition of capital to support its normal business activities and to remain within its Board-approved capital target ranges under normal operating conditions or above regulatory capital requirements under stressed conditions. June December Key risk metrics 2026 2025 2025 Total EC (Rbn) 116.1 126.9 116.7 Total RWA (Rbn)1 1 252.9 1 221.7 1 232.6 CET1 capital adequacy ratio (%)2 12.8 12.5 12.7 EC coverage 1.7 1.5 1.7 Leverage ratio (%)2 7.5 7.7 7.4 Capital and liquidity risk EC (Rbn)3 0.6 0.8 0.7 Cost of equity (CoE) (%)4 14.90 15.10 15.10 • T he Group’s CET1 capital adequacy ratio at 30 June 2026 was above the top end of the Board’s target range of 11.0% to 12.5%, and well above the minimum regulatory requirement. • T he Group dividend payout target of 55% was maintained. • R WA growth was largely driven by balance sheet growth and increased client activity in South Africa combined with the higher regulatory requirements implemented in July 2025 which resulted in an increase in credit risk and market risk. These increases were offset by a reduction in significant investments and deferred tax assets subject to threshold risk. • T he Group’s tier 1 capital position was impacted by additional tier 1 capital issuances of R3.0bn in July 2025, R3.3bn in March 2026 and USD300m in May 2026, partly offset by additional tier 1 redemptions of R1.2bn and USD500m in October 2025 and May 2026, respectively. • T he Group’s tier 2 capital position was impacted by tier 2 capital issuances of R2.5bn, R2.4bn and R2.4bn in September 2025, December 2025 and March 2026, respectively. • AR en tities were adequately capitalised and remained above local minimum regulatory requirements. • T he leverage ratio remained above minimum regulatory requirements with the increase in tier 1 capital supporting leverage exposure growth from the balance sheet growth. • F ollowing assessments of the financial market landscape, the Group’s cost of equity decreased slightly to 14.90% (previously 15.10%), driven by the prevailing financial market conditions. • T he Group successfully issued its first Flac issuance in February 2026, raising R3.2bn in a landmark transaction designed to meet South Africa’s evolving bank - resolution requirements. Additional R2.2bn and R2.6bn of Flac instruments were issued in May and June 2026, respectively. • F ollowing the implementation of a positive cycle-neutral countercyclical buffer (PCN CCyB), the minimum regulatory capital requirements increased by 1% with effect from 1 January 2026. Consequently, the Group updated its target ranges to align with the higher regulatory minimums. 1 T he June 2025 and December 2025 figures were revised to align with the final regulatory submissions. 2 Includes unappr opriated profits. 3 Capital and liquidity risk includes pension risk. 4 T he CoE is based on the capital asset pricing model.
Page 137
135 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk and capital management for the interim reporting period ended Capital adequacy The Group’s capital management strategy, which supports and aligns with its business strategy, is to build capital resilience while supporting targeted balance sheet growth and capital demand. Group performance Bank performance Board target ranges1 Minimum RC requirements2 June December June December 2026 2025 2025 3 2026 2025 2025 3 Statutory capital ratios (includes unappropriated profits) (%) CET1 11.0 – 12.5 12.8 12.5 12.7 12.0 12.2 11.9 Tier 1 >12.5 14.4 14.0 14.3 14.3 14.6 14.2 Total capital adequacy requirement (CAR) >15.0 16.1 15.2 15.8 16.5 16.0 16.1 Leverage > 5.0 7.5 7.7 7.4 5.7 5.8 5.8 Regulatory capital ratios (exclude unappropriated profits) (%) CET1 9.5 12.1 11.6 11.9 11.5 11.6 11.4 Tier 1 11.3 13.7 13.2 13.6 13.7 13.9 13.7 Total CAR 13.5 15.4 14.4 15.1 15.9 15.3 15.6 Leverage 4.5 4 7.1 7.2 7.1 5.5 5.5 5.6 Qualifying capital (including unappropriated profits) CET1 (Rbn) Additional Tier 1 (Rbn) Tier 2 (Rbn) Group Dec 2025 Dec 2024 Dec 2023 Dec 2022 Jun 2026 17.0 25.5 132.2 18.6 16.0 146.0 21.0 16.4 155.8 20.3 18.9 160.4 20.5 21.1 Dec 2025 Dec 2024 Dec 2023 Dec 2022 Jun 2026 68.1 23.4 77.8 15.4 19.7 88.3 18.7 12.7 94.5 18.3 15.0 97.3 18.4 18.0 119.3 Bank 7.9 Group Bank Dec 2022 Dec 2023 Dec 2024 Dec 2025 Jun 2026 Dec 2022 Dec 2023 Dec 2024 Dec 2025 Jun 2026 12.8 12.5 12.6 12.7 12.8 CET1 ratio (%) 12.5 11.9 12.6 11.9 12.0 16.6 15.8 15.8 15.8 16.1 Total CAR (%) 17.6 16.2 17.1 16.2 16.5 1 007.4 1 058.4 1 161.7 1 231.8 1 252.9 RWA (Rbn)3 662.1 683.0 700.3 789.7 795.8 1 Capital r atios (including unappropriated profits) are managed against Board capital targets. The Absa Bank Limited CET1 Board target range is 11.0% to 12.0%. 2 T he 2026 minimum total regulatory capital adequacy requirement of 13.5% includes the capital conservation buffer, Pillar 2A, PCN CCyB and the D-SIB add-on but excludes the bank specific individual capital requirement (Pillar 2B add-on) as required by regulatory guidance. 3 R WAs were revised to align with final regulatory submissions. 4 T he leverage regulatory minimum increased from 4.0% to 4.5%, effective 1 July 2025 for both Absa Group and Absa Bank. Capital risk continued
Page 138
136 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk management overview for the interim reporting period ended Capital supply Breakdown of qualifying capital June 2026 June 2025 December 2025 Group Rm %1 Rm % 1 Rm2 %1 CET1 151 110 12.1 142 272 11.6 147 032 11.9 Additional tier 1 capital 20 465 1.6 19 111 1.6 20 283 1.6 Tier 1 capital 171 575 13.7 161 383 13.2 167 315 13.6 Tier 2 capital 21 089 1.7 14 289 1.2 18 879 1.5 Total qualifying capital (excluding unappropriated profits) 192 664 15.4 175 672 14.4 186 193 15.1 Qualifying capital (including unappropriated profits) CET1 including unappropriated profits 160 426 12.8 152 127 12.5 155 839 12.7 CET1 151 110 12.1 142 272 11.6 147 032 11.9 Unappropriated profits 9 316 0.7 9 855 0.9 8 807 0.7 Additional tier 1 capital 20 465 1.6 19 111 1.6 20 283 1.6 Tier 1 capital 180 891 14.4 171 238 14.0 176 122 14.3 Tier 2 capital 21 089 1.7 14 289 1.2 18 879 1.5 Total qualifying capital (including unappropriated profits) 201 980 16.1 185 527 15.2 195 000 15.8 June 2026 June 2025 December 2025 Absa Bank3 Rm % 1 Rm % 1 Rm2 %1 CET1 92 568 11.5 83 860 11.6 90 618 11.4 Additional tier 1 capital 18 354 2.3 16 965 2.3 18 316 2.3 Tier 1 capital 110 922 13.7 100 825 13.9 108 934 13.7 Tier 2 capital 17 961 2.2 10 467 1.4 14 957 1.9 Total qualifying capital (excluding unappropriated profits) 128 883 15.9 111 292 15.3 123 891 15.6 Qualifying capital (including unappropriated profits) CET1 including unappropriated profits 97 337 12.0 88 705 12.2 94 474 11.9 CET1 92 568 11.5 83 860 11.6 90 618 11.4 Unappropriated profits 4 769 0.6 4 845 0.6 3 856 0.5 Additional tier 1 capital 18 354 2.3 16 965 2.3 18 316 2.3 Tier 1 capital 115 691 14.3 105 670 14.6 112 790 14.2 Tier 2 capital 17 961 2.2 10 467 1.4 14 957 1.9 Total qualifying capital (including unappropriated profits) 133 652 16.5 116 137 16.0 127 747 16.1 1 P ercentage of capital to RWAs. 2 T he December 2025 figures were revised to align with final regulatory submissions. 3 Absa Bank Limited includes subsidiary undertakings, special-purpose entities, joint ventures, associates and offshore holdings. Capital risk continued
Page 139
137 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Risk and capital management Segment performance Risk management overview for the interim reporting period ended Economic capital EC provides a common basis upon which to aggregate and compare different risks using a forward-looking, single measure of risk. It is a critical input into the internal capital adequacy assessment process (ICAAP) and in capital allocation decisions, which supports shareholder value creation. EC considers risk types that not only lead to potential operating losses but can also result in lower-than-expected earnings. In the table below, EC demand is presented at a 99.90% confidence level, aligned with the ERMF principal risks. EC demand is compared with the available financial resources (AFR) – also referred to as EC supply – to evaluate the total EC surplus. The Group ensures there is sufficient AFR to meet this minimum demand requirement under severe yet plausible stress conditions. June December Economic capital 2026 Rm 2025 Rm 2025 Rm Credit risk1 67 453 79 642 69 586 Market risk 19 514 19 270 19 152 Trading book risk 9 557 9 311 9 403 Banking book risk 9 957 9 959 9 749 Insurance risk 6 861 6 505 6 863 Strategic, sustainability and reputational risk 6 105 5 752 6 319 Model risk 2 277 1 839 1 592 Capital and liquidity risk2 646 775 684 Operational and resilience risk3 13 263 13 090 12 503 Total EC requirement 116 118 126 873 116 699 Total EC AFR 202 510 188 230 195 696 Total EC surplus 86 392 61 357 78 998 EC coverage ratio 1.7 1.5 1.7 Interest rate risk in the banking book June December Key risk metrics 2026 2025 2025 Banking book net interest income (NII) sensitivity for a 2% increase shock in interest rates (Rm) 1 213 989 1 430 South Africa 563 657 681 AR 650 332 749 Banking book NII sensitivity for a 2% downward shock in interest rates (Rm) (2 401) (2 342) (2 768) South Africa (1 004) (1 005) (1 270) AR (1 397) (1 337) (1 498) • T he Group continued to actively manage interest rate risk within its approved risk appetite. • Gr oup NII sensitivity increased during the year, primarily driven by higher sensitivity in Africa Regions markets. This was largely due to asset growth funded through stable structural deposits. Markets outside South Africa remained less developed, limiting the feasibility of fully hedging NII risk through derivative instruments. • Despit e continued growth in the banking book, South Africa's NII sensitivity remained broadly stable throughout the year. This was mainly attributable to asset growth being funded predominantly through ZARONIA-linked liabilities, which effectively mitigated repricing risk and maintained a balanced interest rate profile. 1 Cr edit risk includes investment risk, CCR, central CCR, CVA and securitisation. 2 Capital and liquidity risk includes pension risk. 3 Oper ational and resilience risk includes operational risk and non-customer assets which includes property and equipment. Capital risk continued
Page 140
Appendices 138Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 139 Shar e performance 140 Shar eholders information and diary 141 Glossary 146 Abbr eviations and acronyms 148 A dministrative and contact details
Page 141
139 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Share performance for the interim reporting period ended Share performance (indexed to 100 at 31 December 2025) Share performance (cents) — Absa — Banks index 120 115 110 105 100 95 90 85 80 6/1/20261/1/2026 3/1/2026 4/1/2026 5/1/20262/1/2026 30 June 31 December Change Share performance on the JSE 2026 2025 % 2025 Number of shares in issue, which includes 2026: 66 281 564 (2025: 65 074 525) treasury shares 894 376 907 894 376 907 894 376 907 Market prices (cents per share): closing 22 792 17 600 30 23 936 high 27 203 19 635 39 23 936 low 22 572 15 666 44 15 666 average 24 415 17 946 36 18 725 Closing price/ NAV per share (times) 1.09 0.88 24 1.15 Price-to-earnings ratio (closing price/HEPS) (times) 7.47 6.17 21 8.10 Volumes of shares traded (million) 353 351 1 731 Value of shares traded (Rm) 85 847 62 435 37 136 344 Market capitalisation (Rm) 203 846 157 414 29 214 078 Total return (%) (1.2) (3.2) 34.4
Page 142
140 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Shareholder information and diary Major ordinary shareholders (%) 2026 2025 14.28 (4.54) Public Investment Corporation (SA) 7.00 (7.00) Newshelf 1405 Limited (SA) 4.55 (4.31) Black Rock Incorporated (US, UK, JP, CA, IE) 3.97 (4.95) M&G (SA, UK) 3.78 (3.77) The Vanguard Group (US, AU) 3.58 (1.90) Ninety One (SA) 3.02 (2.44) Sanlam Investment Management (SA) 2.64 (3.03) Old Mutual (SA, NA) 2.53 (0.41) Coronation Asset Management (SA) 2.46 (1.72) SBG Securities 52.19 (65.93) Other Major shareholding split by geography (%) 2026 2025 65.82 (63.94) South Africa 15.25 (16.40) United States and Canada 7.57 (10.10) United Kingdom 11.36 (9.56) Other countries Shareholder diary Financial year-end 31 December 2026 Annual general meeting 02 June 2027 Dividend Declaration date Last day to trade Ex-dividend date Record date Payment date Tuesday Tuesday Wednesday Friday Monday Final 18 August 2026 15 September 2026 16 September 2026 18 September 2026 21 September 2026
Page 143
141 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Glossary Approaches (FIRB, AIRB, AMA and IMA) Methods available to banks to calculate their regulatory capital requirements, based on their own risk estimates. These include the foundation internal ratings-based (FIRB) and advanced internal ratings-based (AIRB) approaches for credit risk, the advanced measurement approach (AMA) for operational risk and the internal models approach (IMA) for market risk. Average interest-bearing assets Average interest-bearing assets consist of all accounts that are not impaired and thus attract interest within the asset categories of cash, cash balances and balances with central banks, loans and advances to banks and customers and investment securities (including cash and short-term assets, money market assets and capital market assets). Average loans to deposits and debt funding ratio Loans and advances to customers and loans and advances to banks as a percentage of deposits due to customers, deposits to banks and debt funding (calculated on daily weighted averages). Balance sheet The term “balance sheet” is used in the same context as the “statement of financial position”. Bank Absa Bank Limited, together with its subsidiary undertakings, special-purpose entities, joint ventures, associates and offshore holdings. It is also referred to as “the Bank” or “Absa Bank” in this report. Banking average assets Banking average assets consist of all average assets related to the banking activities of the Group. Banking average assets exclude “Other assets”, “Current tax assets”, “Non-current assets held for sale”, “Reinsurance assets”, “Goodwill and intangible assets”, “Property and equipment” and “Deferred tax assets”, and includes “Trading portfolio liabilities”. Banking book annual earnings at risk A measure of the sensitivity of net interest income over a one-year horizon due to a change in the level of interest rates. Calculated as the difference between the estimated income using the current yield curve, and the lowest estimated income following an increase or decrease in interest rates. As per regulatory requirement, a 200 bps downward shock is applied. Banking income yield Income as a proportion of banking average assets. Banking interest yield Net interest income after credit losses, as a proportion of banking average assets. Banking non-interest yield Non-interest income as a proportion of banking average assets. Banks Act This means the Banks Act, No 94 of 1990 and its accompanying regulations relating to banks published in the Government Gazette on 12 December 2012. Barclays Barclays PLC, registered in England under registration number 1026167. Basel Capital Accord (ll, II.5 and lll) The Basel Capital Accord of the Bank for International Settlements is an improved capital adequacy framework aimed at closely aligning banks’ capital requirements with improved modern risk management practices and sophisticated risk assessment capabilities. It further ensures the risk sensitivity of the minimum capital requirements by including supervisory reviews and market discipline through enhanced disclosure. Capital adequacy ratio The capital adequacy of South African banks is measured in terms of the requirements of the SARB. The ratio is calculated by the aggregate amount of qualifying capital and reserve funds dividend by RWA. The base minimum South African total capital adequacy ratio for banks is 10% of RWA. Non-South African banks in the Group have similar capital adequacy methodology requirements. Capital – Additional Tier 1 capital Additional Tier 1 capital consists of the sum of the following elements: • Ins truments issued by Absa Bank Limited that meet the criteria for inclusion in Additional Tier 1 capital (and are not included in CET1); • S tock surplus (share premium) resulting from the issue of instruments included in Additional Tier 1 capital; • Ins trument issued by consolidated subsidiaries of Absa Bank Limited and held by third parties that meet the criteria for inclusion in Additional Tier 1 capital and are not included in Common Equity Tier 1. See section 4 for the relevant criteria; and • R egulatory adjustments applied in the calculation of additional Tier 1 capital.
Page 144
142 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Glossary Capital – Common Equity Tier 1 Common Equity Tier 1 capital consists of the sum of the following elements: • Common shar es issued by Absa Bank Limited that meet the criteria for classification as common shares for regulatory purposes (or the equivalent for non-joint stock companies); • S tock surplus (share premium) resulting from the issue of instruments including CET1; • R etained earnings; • Accumulat ed other comprehensive income and other disclosed reserves; • Common shar es issued by consolidated subsidiaries Absa Bank Limited and held by third parties (i.e., non-controlling interest) that meet the criteria for inclusion in CET1; and • R egulatory adjustments applied in the calculation of CET1. Capital – Common Equity Tier 1 capital adequacy ratio A measurement of a bank’s core equity capital compared with its total risk-weighted assets. This is the measure of a bank’s financial strength. The Common Equity Tier 1 excludes any preference shares or non-controlling interests when determining the calculation. Capital – Tier 2 capital Tier 2 capital consists of the sum of the following elements: • Ins truments issued by Absa Bank Limited that meet the criteria for inclusion in Tier 2 capital (and are not included in Tier 1 capital); Stock surplus (share premium) resulting from the issue of instruments included in Tier 2 capital; • Ins truments issued by consolidated subsidiaries of Absa Bank Limited and held by third parties that meet the criteria for inclusion in Tier 2 capital and are not included in Tier 1 capital; • Certain loan loss pr ovisions such as general provisions/general loan-loss reserve; and Regulatory adjustments applied in the calculation of Tier 2 capital. Capital – Tier 2 ratio A component of regulatory capital, comprising qualifying subordinated loan capital, related minority interests, allowable collective impairment allowances, and unrealised gains arising on the fair valuation of equity instruments designated at fair value through other comprehensive income. Tier 2 capital also includes reserves arising from the revaluation of properties. Capital-qualifying financial liabilities Subordinated callable notes qualifying as long-term Tier 2 capital in terms of section 1 of the Banks Act, No 94 of 1990. Conduct risk Conduct risk is the detriment caused to the Group’s customers and clients, counterparties or Absa Bank Limited as a result of inappropriate execution of the business activities. Constant currency The selected line items from the Condensed consolidated statement of comprehensive income and Condensed consolidated statement of financial position for the Africa Regions market segment disclosed on pages 17 and 19 are derived by translating the Statement of comprehensive income and Statement of financial position from the respective individual entities’ local currencies to Rand. The current reporting period’s results are translated at the current reporting period’s average rates for the Statement of comprehensive income, while the closing rate is used for the Statement of financial position in terms of IFRS. The percentage change based on constant currency has been presented to provide information on the impact of foreign currency movements on the local currency earnings. This is calculated for the Statement of comprehensive income and Statement of financial position, by translating the previous and current reporting periods’ results at the exchange rate as at the prior reporting date and comparing the two outcomes. The percentage change based on constant currency is provided for illustrative purposes only and may not fairly present the Group’s financial position and/or the results of its operations. The directors are responsible for the preparation of the constant currency information. Contractual service margin (CSM) The component of insurance contract liabilities that represents the unearned profit an insurance company expects to recognize over the life of a contract. Cost of equity An estimate of the return that the market demands in exchange for the risk of ownership of equity. Cost-to-income ratio Operating expenses as a percentage of income. Income consists of net interest income and non-interest income. Coverage ratio Impairment losses on loans and advances as a proportion of gross loans and advances. Credit loss ratio Impairment losses on loans and advances for the reporting period, divided by total average advances (calculated on a daily weighted average basis). Debt funding Short- to medium-term instruments issued by the Group, including promissory notes, bonds and negotiable certificates of deposits.
Page 145
143 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Glossary Diluted headline earnings per share Headline earnings for the reporting period that is attributable to ordinary equity holders, as a proportion of the weighted average number of ordinary shares in issue adjusted for the effect of all potential dilutive ordinary shares. Distribution force Number of active advisers. Dividend payout ratio The total amount of dividends paid out to shareholders per ordinary share divided by the headline earnings per share. Dividend per ordinary share relating to income for the reporting period Dividend per ordinary share for the reporting period is the actual interim dividends paid and the final dividends declared for the reporting period under consideration, expressed as cents per share. Special dividend per ordinary share is a payment made by the Group that is considered separate from the typical recurring dividend cycle, expressed as cents per share. Earnings per share Basic earnings per share This constitutes the net profit for the reporting period, less earnings attributable to non-controlling interest, divided by the weighted average number of ordinary shares in issue during the reporting period. Diluted basic earnings per share The amount of profit for the reporting period that is attributable to ordinary equity holders, divided by the weighted average number of ordinary shares in issue during the reporting period, both adjusted for the effects of all potential dilutive ordinary shares, assuming they had been in issue for the reporting period. Economic capital Economic capital is an estimate of the maximum downward deviation from expectation in shareholder value, measured on an economic basis over a one-year time horizon and at a 99.95% confidence level. This sets the internal capital requirement deemed necessary by the Group to support the risks which is exposed. Exchange differences Differences resulting from the translation of a given number of units of one currency into another currency at different exchange rates. Expected credit loss (ECL) coverage ratio ECL allowance as a proportion of gross loans and advances to customers and banks. Financial Markets Act This means the Financial Markets Act No 19 of 2012 and its regulations. This Act is the primary legislation governing the regulation of financial markets, market infrastructure and securities services in South Africa. It focuses primarily on the licensing and regulation of exchanges, central securities depositories, clearing houses, trade repositories and market infrastructure. The Act also strengthens measures already in place aimed at prohibiting insider trading and other market abuses. Foreign currency translation Foreign currency accounts of the Group’s subsidiaries translated to reporting currency, with the foreign adjusted currency translation included in a foreign currency translation reserve as equity capital. Gains and losses from banking and trading activities Banking and trading portfolios include: • r ealised gains and losses on financial instruments measured at amortised cost or at fair value through other comprehensive income; • r ealised gains and losses on the disposal of associates, joint ventures and subsidiaries within the banking portfolios; • r ealised and unrealised gains and losses on financial instruments designated at fair value through profit or loss; and • in terest, dividends and fair value movements on certain financial instruments held for trading or designated at fair value through profit or loss. Gains and losses from investment activities Insurance and strategic investment portfolios including: • r ealised gains and losses on financial instruments measured at amortised cost or at fair value through other comprehensive income; • r ealised gains and losses on the disposal of associates, joint ventures and subsidiaries; • r ealised and unrealised gains and losses on financial instruments designated at fair value through profit or loss; and • in terest, dividends and fair value movements on certain financial instruments held for trading or designated at fair value through profit or loss. Gross credit extended Loans advanced to customers and banks, as well as off-balance sheet exposures. Gross loans-to-deposits and debt funding ratio Gross loans and advances as a percentage of deposits and debt funding. Group Absa Group Limited, together with its subsidiary undertakings, special-purpose entities, joint ventures, associates and offshore holdings. It is also referred to as “the Group” or “Absa Group” in this report.
Page 146
144 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Glossary Headline earnings Headline earnings reflects the operating performance separated from remeasurements (an amount recognised in the statement of comprehensive income relating to any change (realised or unrealised) in the carrying amount of an asset/liability that arose after the initial recognition of such asset or liability) as well as non-controlling interest of preference shares or ordinary shares, where relevant. Headline earnings per share Headline earnings per share Profit attributable to ordinary equity holders after adjusting for separately identifiable remeasurements, net of tax and non- controlling interest, divided by the weighted average number of ordinary shares in issue. A remeasurement is an amount recognised in profit or loss relating to any change in the carrying amount of an asset or liability that arose after the initial recognition of such asset or liability. Diluted headline earnings per share Diluted headline earnings per share is calculated by adjusting both the headline earnings and the weighted average number of ordinary shares outstanding for the effects of all potential dilutive ordinary shares, assuming they had been in issue for the reporting period. Income statement The term Income statement is used in the same context as the Statement of comprehensive income. Indirect taxation Indirect taxes are the taxes that are levied on transitions rather than on persons (whether individuals or corporate). These taxes include unclaimed value-added taxes, stamp duties on deposits and Regional Services Council levies. JAWS A measure used to demonstrate the extent to which the Group’s income from operations growth rate exceeds operating expenses growth rate. Income from operations consists of net interest income and non-interest income. Leverage Average assets as a proportion of average equity. Long-term funding ratio Funding with a term in excess of six months. Market capitalisation The Group’s closing share price, times the number of shares in issue at the reporting date. Merchant income Income generated from the provision of point-of-sale facilities to the Group’s merchant network customers. This income includes both rental income for the supply of point-of-sale units as well as transactional income for the transactions processed on the supplied terminals. Net asset value per share Total equity attributable to ordinary equity holders divided by the number of shares in issue excluding treasury shares. The net asset value per share figure excludes the non-cumulative, non-redeemable preference shares issued. Net income Net income consists of net interest income and non-interest income, net of credit impairment losses on loans and advances. Net insurance income Consists of the following Statement of comprehensive income line items: “insurance service result”, “net finance income/(expenses) from insurance contracts”, “net finance income/(expenses) from reinsurance contracts”, “changes in investment contract liabilities “and “gains and losses from investment activities*”. * T his excludes Other as defined in the note. Net interest income The amount of interest received or receivable on assets net of interest paid or payable on liabilities. Net interest margin on average interest-bearing assets Net interest income for the reporting period, divided by average interest-bearing assets (calculated on a monthly weighted average basis), expressed as a percentage of average interest-bearing assets. Net present value unwind on non-performing book A net present value adjustment representing time value of money of expected cash flows within the impairment allowance. Such time value of money reduces as the point of cash flow is approached. The time-based reduction in time value of money is recognised in the statement of comprehensive income as interest received on impaired assets. Net trading result Net trading result includes the profits and losses on CIB’s trading desks arising from both the purchase and sale of trading instruments and the revaluation to market value, as well as CIB’s hedge ineffectiveness. This includes the interest income and interest expense from these instruments and related funding cost. It also includes similar activities from the African operations. Non-interest income Non-interest income consists of the following Statement of comprehensive income line items: “net fee and commission income”, “insurance service result”, “net finance income/(expenses) from insurance contracts”, “net finance income/(expenses) from reinsurance contracts”, “changes in investment contract liabilities”, “gains and losses from banking and trading activities”, “gains and losses from investment activities” as well as “other operating income”.
Page 147
145 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Glossary Non-interest income as a percentage of total income Non-interest income as a percentage of total income from operations. Total income consists of net interest income and non-interest income. Pre-provision profit Total income less operating expenses. Price-to-earnings ratio The closing price of ordinary shares, divided by twelve months trailing diluted headline earnings per ordinary share for the reporting period. Probability of default The probability that a debtor will default within a one-year time horizon. Regulatory capital The capital that the Group holds, determined in accordance with the requirements of the Banks Act and regulations relating to banks. Return on average assets Annualised headline earnings as a proportion of total average assets. Return on average equity Annualised headline earnings as a proportion of capital attributable to ordinary shareholders for the Group. Measure of efficient use, by segment, of regulatory capital for the business units. Return on average risk-weighted assets Annualised headline earnings as a proportion of average risk- weighted assets. Revenue Total income as per the Statement of comprehensive income. Risk adjustment (RA) The specific amount an insurance entity requires to compensate it for the uncertainty of bearing non-financial risks from insurance contracts. Risk-weighted assets Calculated by assigning a degree of risk, expressed as a percentage (risk weight) to an exposure, in accordance with the applicable standardised or internal ratings-based approaches rules. RWA are determined by applying the: • AIRB appr oach for wholesale and retail credit; AMA for operational risk; • In ternal ratings-based market-based simple risk-weight approach for equity investment risk in the banking book; and • S tandardised approach for all African entities (both credit and operational risk). Solvency margin The amount by which assets, at fair value, exceed liabilities and other comparable commitments. Stage 1 Assets comprise exposures that are performing in line with expectations at origination. Financial assets that are not purchased or originated with a credit impaired status are required to be classified on initial recognition within stage 1. Stage 2 Exposures are required to be classified within stage 2 when a significant increase in credit risk has been observed. The factors which trigger a reclassification from stage 1 to stage 2 have been defined so as to meet the specific requirements of IFRS 9, and in order to align with the Group’s credit risk management practices. Stage 3 Credit exposures are classified within stage 3, when they are regarded as being credit impaired, which aligns to the bank’s regulatory definition of default. Stage 3 loans ratio on gross loans and advances Stage 3 loans and advances as a percentage of gross loans and advances. Tangible net asset value per share Total equity attributable to ordinary equity holders less goodwill and intangible assets, divided by the number of shares in issue excluding treasury shares. The tangible net asset value per share figure excludes the non-cumulative, non-redeemable preference shares issued. Total income/income Total income/income consists of net interest income and non- interest income. Underwriting margin A measure of profitability that indicates the proportion of profit or loss earned from an insurer’s core underwriting activities, calculated as underwriting profit (or loss) divided by net earned premiums. Value-at-risk model A technique that measures the loss that could occur on risk positions as a result of adverse movements in market risk factors (e.g. rates, prices, volatilities) over a specified time horizon and to a given level of confidence. Weighted average number of shares The number of shares in issue at the beginning of the reporting period increased by shares issued during the reporting period, weighted on a time basis for the period during which they participated in the income, less treasury shares held by entities, weighted on a time basis for the period during which the entities held these shares.
Page 148
146 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management Abbreviations and acronyms List of abbreviations A AEaR Annual earnings at risk AFR A vailable financial resources AFS Annual financial s tatements AGL Absa Gr oup Limited AIRB adv anced internal ratings-based approach AMA adv anced measurement approach ATC A frica Treasury Committee ATM aut omated teller machine AR A frica Regions B Basel Basel Capital Accord BB Business Banking BER C Gr oup Executive Risk Committee BBBEE Br oad-based black economic empowerment BIA Basic Indicator Approach Bps basis poin ts BU business unit C CAR capital adequacy requirement CAGR Compound annual gr owth rate CCF cr edit conversion factor CCP cen tral counterparty CCR coun terparty credit risk CCY cons tant currency CEM curr ent exposure method CET1 Common E quity Tier 1 CFP con tingency funding plan CIB Corpor ate and Investment Banking CLF committ ed liquidity facility CLR cr edit loss ratio CLGD coun try loss given default CMRA conduct mat erial risk assessments CoRC Concen tration Risk Committee CPF Commer cial Property Finance CPI Consumer Price Index CPRF Conduct P rincipal Risk Framework CR cr edit risk CRC Con trol Review Committee CRCC Coun try Risk and Control Review Committee CRM cr edit risk mitigation CRRC Conduct and R eputational Risk Committee CSA(s) collat eral support annexure(s) CVA cr edit valuation adjustment CVP cus tomer value proposition D DGS Deposit Guar antee Scheme D-SIBs domes tic-systemically important banks DVaR daily value at risk E EAD e xposure at default EC economic capital EC A economic capital adequacy E dcon E dcon Store Card portfolio EL e xpected loss ERMF E nterprise Risk Management framework EVE economic value of equity EWIs early warning indicators F FRTB F undamental Review of the Trading Book FX Forex G G AC Gr oup Actuarial Committee GACC Gr oup Audit and Compliance Committee GCC Gr oup Credit Committee GCCO Gr oup Chief Credit Officer GCE Gr oup Chief Executive GCRO Gr oup Chief Risk Officer GMRA Global Mas ter Repurchase Agreement GMRP Gr oup Model Risk Policy GMSLA Global Mas ter Securities Lending GRCMC Gr oup Risk and Capital Management Committee Group Absa Gr oup Limited GWWR g eneral wrong way risk H HQLA high-quality liquid assets HR high risk
Page 149
147 Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 AppendicesGroup performance Segment performance Risk and capital management I IAA in ternal assessment approach IAS In ternational Accounting Standard(s) IAS 28 IAS 28 In vestments in Associates IAS 39 IAS 39 F inancial Instruments: Recognition and Measurement ICAAP in ternal capital adequacy assessment process ICMA In ternational Capital Market Association IFRS In ternational Financial Reporting Standard(s) IFRS 9 F inancial Instruments IFRS 11 Join t Arrangements IMA in ternal models approach IMM in terest models method IRB in terest ratings-based IRRBB in terest rate risk in the banking book ISDA In ternational Swaps and Derivatives Association ISLA In ternational Securities Lending Association IT in formation technology IVC Independen t Valuation Committee J JIBAR Johannesbur g Interbank Agreed Rate JSE Johannesbur g Stock Exchange K KCI k ey control indicator KI k ey indicator KPI k ey performance indicator KRI k ey risk indicator KRO K ey Risk Officer KRS K ey Risk Scenarios M MC Gr oup Model Committee MR mark et risk MPC Mone tary Policy Committee N NCWO No-credit-worse-off NII ne t interest income NIM ne t interest margin NPL(s) Non-perf orming loan(s) NSFR Ne t stable funding ratio O OR&C C Oper ational Risk and Control Committee ORMF Oper ational Risk Management Framework ORSA Own Risk and Solvency Assessment ORX Oper ational risk data exchange OTC over-the-counter P PPB P ersonal and Private Banking R RBA r atings-based approach RC r egulatory capital RDARR Risk data aggregation and risk reporting RoE r eturn on average equity RoRWA r eturn on average risk-weighted assets RRP r ecovery and resolution plan RSU Risk Sanctioning Unit RW risk-weight RWA risk -weighted assets RWR righ t way risk S SA S tandardised approach SA-CCR S tandardised approach for counterparty credit risk SAM Solv ency Assessment and Management SARB South African Reserve Bank SEC securitisations SFA supervisory formula approach SL specialised lending SME small and medium-siz ed enterprises SSFA simplified supervisory formula approach sVAR s tressed value at risk SWWR specific wr ong way risk T TLAC T otal loss absorbing capacity TRC T rading Risk Committee TSA T he standard approach T TC through-the-cycle V VA F V ehicle and Asset Finance Va R V alue at risk W WL w atch list Z Zar onia South African Rand Overnight Index Average Abbreviations and acronyms
Page 150
148Absa Group Limited F inancial results for the interim reporting period ended 30 June 2026 Absa Group Limited Incorporated in the Republic of South Africa Registration number: 1986/003934/06 Authorised financial services and registered credit provider (NCRCP7) JSE share code: ABG ISIN: ZAE000255915 Bond issuer code: ABGI Registered Office 7th Floor, Absa Towers West 15 Troye Street, Johannesburg, 2001 PO Box 7735, Johannesburg, 2000 +27 11 350 4000 Head of Investor Relations Alan Hartdegan Telephone: +27 11 350 2598 Group Company Secretary Nadine Drutman Telephone: +27 11 350 5347 Head of Financial Control John Annandale Telephone: +27 11 350 3496 Transfer Secretary Computershare Investor Services (Pty) Ltd Telephone: +27 11 370 5000 https://www.computershare.com/za Queries Please direct investor relations queries to IR@absa.africa Please direct media queries to groupmedia@absa.africa Please direct queries relating to your Absa Group shares to web.questions@computershare.co.za Please direct general queries regarding the Group to absa@absa.co.za Sponsors Lead independent sponsor J.P. Morgan Equities South Africa (Pty) Ltd Telephone: +27 11 507 0300 jpm_sponsor@jpmorgan.com Joint sponsor and debt sponsor Absa Bank Limited (Corporate and Investment Bank) Telephone: +27 11 895 6000 IBDJSESponsor@absa.africa Auditors KPMG Inc. Telephone: +27 11 647 7111 https:/ /kpmg.com/za/en.html PricewaterhouseCoopers Inc. Telephone: +27 11 797 4000 https:/ /www.pwc.co.za/ Administration and contact details