Slide 1: 1H26 Financial results
Absa Group Limited 1H26 Financial results Investor presentation 18 August 2026
Slide 2: Kenny Fihla, Group Chief Executive Officer
Kenny Fihla Group Chief Executive Officer
Slide 3: Unlocking the full potential of the franchise through focused execution
Unlocking the full potential of the franchise through focused execution OUR PURPOSE Empowering Africa’s Tomorrow, Together… One Story at a Time OUR AMBITION To be a leading pan-African bank OUR STRATEGIC PILLARS CUSTOMER- DIVERSIFIED, DRIVE NEW GROWTH LED GROWTH PAN-AFRICAN EXCELLENCE OPPORTUNITES B
Slide 4: Our chosen markets remained resilient despite global uncertainty
Our chosen markets remained resilient despite global uncertainty GDP growth (%) – Global vs. South Africa vs. Africa Regions Interest rate movement across selected markets (Indexed) Global 3.5 100 3.3 3.4 3.4 3.0 95 90 2023 2024 2025 2026E 2027E 85 SA Africa Regions * 80 5.6 4.8 4.8 5.0 5.1 75 70 KE
Slide 5: Solid 1H26 performance, with 8% earnings growth and RoE improving to 15%
Solid 1H26 performance, with 8% earnings growth and RoE improving to 15% Earnings Balance sheet Shareholder returns Headline Earnings Revenue Common Equity Tier 1 Dividends per share +8% +4% 12.8% R12.8bn in 1H26 R58.8bn in 1H26 From 12.5% in 1H25 +8% Return on Equity Net Interest Income Loans Growt
Slide 6: Strong client franchise momentum, with South Africa and key businesses delivering encouraging growth
Strong client franchise momentum, with South Africa and key businesses delivering encouraging growth Business unit Earnings (Rbn) RoE (%) Regional earnings 12% Personal and Private Banking 3.7 4.1 15.2 (13.9% 1H25) +10% +23% 1H25 1H26 +36% CCY 5% Business Banking 2.6 2.7 24.6 (23.1% 1H25) +10% (18%)
Slide 7: Client-led growth
Client-led growth | The client franchise is starting to respond which further builds our conviction We continue to grow and engage with customers Clients trust us for solutions across the continent Personal and Private Banking Corporate and Investment Banking Growth Engagement +6% Client revenue +15
Slide 8: Diversified Pan-African business
Diversified Pan-African business | Broadening sources of earnings and growth is critical to building a more sustainable franchise A diversifying Pan-African business BU contribution CIB 47.5% PPB 31.5% BB 21.0% As a percent of group headline earnings 49.4% in 1H25 29.5% in 1H25 21.1% in 1H25 Geograp
Slide 9: Drive excellence
Drive excellence | Disciplined cost management is creating capacity to invest in our strategic priorities Productivity and discipline Investing for growth Managing cost growth to below inflation We are still investing to achieve our strategy Branch and channel optimisation – automation, Frontline ta
Slide 10: New growth opportunities
New growth opportunities | We are extending our reach, enhancing our relevance and creating value beyond traditional banking products Bringing value to clients through partnerships Paving the way for wider Providing over 13 million clients By combining DHL Express’ adoption of green solutions in wit
Slide 11: Culture
Culture | Culture a key foundational enabler of our transformation and growth Culture We are obsessed with delivering customer value with excellence. We own and take Vision accountability for the outcomes. We win together. Mindset shifts, to: Strengthening leadership and deepening talent across the
Slide 12: Deon Raju, Group Financial Director
Deon Raju Group Financial Director
Slide 13: Solid earnings growth improved RoE slightly
Solid earnings growth improved RoE slightly Headline earnings (Rbn) RoE (%) 8% 15.7 17% 12.8 14.8 15.0 14.0 2% 11.9 (5%) 10.7 10.2 1H23 1H24 1H25 1H26 1H23 1H24 1H25 1H26 13
Slide 14: Pre-provision profit growth and credit charge underpin earnings growth
Pre-provision profit growth and credit charge underpin earnings growth 1H26 1H25 Change Change Rbn Rbn % CCY % Net interest income 37.4 36.3 3 5 Non-interest income 21.4 20.2 6 7 Total income 58.8 56.5 4 6 Operating expenses (31.4) (30.0) 4 6 Pre-provision profit 27.4 26.4 4 5 Credit impairment char
Slide 15: Strong South Africa earnings growth outweighs lower Africa Regions
Strong South Africa earnings growth outweighs lower Africa Regions Revenue by geography (Rbn) Headline earnings by geography (Rm) 8% 17% 41.3 9 188 38.4 1H25 1H26 1H25 1H26 7,838 (3%) (10%) 18.1 17.5 4,036 3 619 South Africa Africa Regions South Africa Africa Regions 15
Slide 16: Lower policy rates a material drag on net interest margin
Lower policy rates a material drag on net interest margin Net interest margin (bps) Change in net interest margin* (basis points) 469 457 458 448 446 6 (19) 458 (1) (12) (6) 8 446 1H24 2H24 1H25 2H25 1H26 1H25 Loans Deposits Capital Hedge Other 1H26 ** *** Note: * average interest bearing assets; **
Slide 17: Stable SA margin given structural hedge
Stable SA margin given structural hedge Net interest margin by geography (bps) Equity and customer deposits (Rbn) 1,347 1H25 1H26 782 318 735 South Africa Africa Regions Split: 81% 19% 377 378 Banking book NII sensitivity 200bp rate cut (Rm) 1,397 1,004 South Africa Africa Regions South Africa Afric
Slide 18: Balance sheet continues to grow
Balance sheet continues to grow Net customer loans (Rbn) Customer deposits (Rbn) 5% 6% 11% 7% 1,469 1,405 5% 1,402 7% 1,319 10% 9% 1,262 1,233 1,203 1,155 1,051 1,085 1H22 1H23 1H24 1H25 1H26 1H22 1H23 1H24 1H25 1H26 18
Slide 19: Solid CIB and BB customer loan growth while PPB remains modest
Solid CIB and BB customer loan growth while PPB remains modest Net customer loans (Rbn) 9% 4% 612 603 1H25 1H26 582 562 9% 170 185 CIB PPB BB Annualised 1H26: 9% 5% 13% 19
Slide 20: Moderate non-interest income growth
Moderate non-interest income growth Non-interest income (Rbn) 5% 3% 1H24 1H25 1H26 13.2 13.6 12.5 36% 4% 5.1 5.3 3.7 5% 8% (55%) 106% 1.5 1.5 1.7 0.5 0.2 0.4 Net fee and commission Net trading Insurance Other Note: Net trading excludes the impact of hedge accounting 20
Slide 21: Operating expenses growth remained well contained
Operating expenses growth remained well contained 1H26 Rm Change % Cost growth drivers (Rbn) Staff 18 250 6 3% 4% Property 966 (2) 6% 0.4 31.4 1.0 Technology 3 800 6 30.0 Depreciation 1 609 2 Professional fees 1 463 7 Marketing 1 061 (9) Amortisation 1 340 (6) Other * 2 904 10 1H25 Staff costs Non-s
Slide 22: Credit loss ratio continued to improve into target range
Credit loss ratio continued to improve into target range … Group credit loss ratio (bps) 127 123 Through-the-cycle target range 75-100 100 91 94 1H22 1H23 1H24 1H25 1H26 22
Slide 23: Lower PPB credit loss ratio, with CIB and BB flat
… due to lower PPB credit loss ratio, with CIB and BB flat Stage coverage ratios (%) Credit loss ratio (%) 1H25 1H26 1H24 1H25 1H26 Stage 1 0.64 0.59 0.60 Personal and Private Banking 1.96 1.87 Stage 2 6.66 5.74 5.40 Stage 3 47.1 46.9 45.5 Unsecured Lending 7.67 7.49 Non-performing loans (%) Home Lo
Slide 24: All businesses grew earnings
All businesses grew earnings Headline earnings (Rbn) 1% 1H25 1H26 6.1 6.2 12% 4.1 3.7 5% 2.6 2.7 (52%) (0.5) (0.2) CIB PPB BB Head Office 24
Slide 25: CIB earnings growth slower
CIB earnings growth slower Headline earnings (Rm) RoE (%) Earnings contribution (%) 1% 20.6 19.2 6,192 6,109 1H25 1H26 1H25 1H26 47.5 Cost-to-income ratio (%) Credit loss ratio (%) 47.4 47.9 0.17 0.17 CIB PPB BB 1H25 1H26 1H25 1H26 25
Slide 26: CIB benefits from diversification, with SA offsetting lower AR earnings
CIB benefits from diversification, with SA offsetting lower AR earnings Headline earnings (Rm) 1% 6 192 1H25 1H26 6 109 13% 3 732 8% 3 298 (12%) 9% 2 811 2 386 2 572 2 460 (13%) 2 160 1 982 1 735 1 508 Transactional Investment Bank Global Markets Total CIB South Africa Africa Regions Banking 26 Note
Slide 27: Some positive signs of traction in PPB
Some positive signs of traction in PPB Headline earnings (Rm) ROE (%) Earnings contribution (%) 12% 15.2 4,106 13.9 3,651 1H25 1H26 1H25 1H26 Cost-to-income ratio (%) Credit loss ratio (%) 28% 31.5 55.7 55.9 1.96 1.87 CIB PPB BB 1H25 1H26 1H25 1H26 27
Slide 28: Broad-based growth in banking earnings across PPB
Broad-based growth in banking earnings across PPB Headline earnings (Rm) 1H25 1H26 5% 1 245 1 188 2% 14% 750 787 733 691 (2%) 70% 22% 515 505 366 328 300 193 Transactions Unsecured Home Loans Vehicle and Asset Insurance SA PPB AR Banking and Deposits Lending Finance PPB SA 28 Note: Excludes PPB SA O
Slide 29: Improved Business Banking performance
Improved Business Banking performance Headline earnings (Rm) RoE (%) Earnings contribution (%) 5% 23.1 24.6 2,603 2,743 21.0 1H25 1H26 1H25 1H26 Cost-to-income ratio (%) Credit loss ratio (%) 54.1 55.4 0.64 0.63 CIB PPB BB 1H25 1H26 1H25 1H26 29
Slide 30: Solid BB SA earnings growth partially offset by lower BB AR
Solid BB SA earnings growth partially offset by lower BB AR BB revenue by geography (Rm) BB headline earnings by geography (Rm) 7% 10% 7 940 2 397 7 428 1H25 1H26 1H25 1H26 2,181 (1%) 2 660 2 634 (18%) 422 346 South Africa Africa Regions South Africa Africa Regions 30
Slide 31: CET1 ratio remains above our target range
CET1 ratio remains above our target range Group common equity tier 1 ratio (Rm) 1.0 (0.6) (0.5) 12.7 12.8 0.2 Target range 11.0% - 12.5% FY25 RWA growth RWA optimisation Profit Dividend 1H26 31
Slide 32: FY26 guidance
FY26 guidance Revenue Low- to mid-single digit revenue growth. Balance sheet Customer loans up high single digit and customer deposits mid- to high-single digit. Credit impairments Credit loss ratio expected to be broadly similar to 2025 and around the middle of our through-the-cycle target range of
Slide 33: Kenny Fihla, Group Chief Executive Officer
Kenny Fihla Group Chief Executive Officer
Slide 34: Our medium-term targets remain unchanged
Our medium-term targets remain unchanged OUR PURPOSE Empowering Africa’s Tomorrow, Together… One Story at a Time OUR AMBITION To be a leading pan-African bank OUR STRATEGIC PILLARS CUSTOMER- DIVERSIFIED, DRIVE NEW GROWTH LED GROWTH PAN-AFRICAN EXCELLENCE OPPORTUNITES BUSINESS DEEPENING TALENT STRONG
Slide 35: Our 1H26 progress gives us confidence that we are strengthening the franchise
Our 1H26 progress gives us confidence that we are strengthening the franchise, sustaining momentum and positioning Absa for long-term growth Sustaining momentum … … while building a long-term sustainable franchise A solid 1H26 performance underlined by 8% Absa remains an institution built on solid e
Slide 36: Disclaimer
Disclaimer Certain statements (words such as ‘anticipates’, ‘estimates’, ‘expects’, ‘projects’, ‘believes’, ‘intends’, ‘plans’, ‘may’, ‘will’ and ‘should’ and similar expressions in this document are forward looking. These relate to, among other things, the plans, objectives, goals, strategies, futu