Slide 1: Absa Group FY25 financial results
Absa Group FY25 financial results
Slide 2: Kenny Fihla, Chief Executive
Kenny Fihla Chief Executive Your story matters (absa}
Slide 3: Volatile global backdrop, with resilient growth and strong African tailwinds
Volatile global backdrop, with resilient growth and strong African tailwinds Global Volatility (World economic policy uncertainty index) • Escalating geopolitical fragmentation and shifting alliances 600 impacting capital flows • Resilient growth despite uncertainty, with US and China 450 outpacing
Slide 4: Strengthening our competitive position through deliberate strategic choices
Strengthening our competitive position through deliberate strategic choices Strong foundations… Strategic choices anchored on… 13.1 million corporate, business and individual customers Deliberate culture shifts Presence in 12 African Being customer-led and leadership markets appointments Africa regi
Slide 5: Strategy is centred on building trust and winning with customers for scaled growth
Strategy is centred on building trust and winning with customers for scaled growth 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 OPP
Slide 6: Performance momentum in FY25 underpinned by solid earnings growth
Performance momentum in FY25 underpinned by solid earnings growth Earnings performance Balance sheet strength Shareholder returns Headline earnings Revenue Common Equity Tier 1 Dividends per share +12% +5% 12.7% +12% R24.8bn in FY25 R116bn in FY25 From 12.6% in FY24 1 635c in FY25 Cost-to-income Ret
Slide 7: Solid earnings growth driven by our CIB and Africa Regions businesses
Solid earnings growth driven by our CIB and Africa Regions businesses Business unit highlights Earnings (Rbn) RoE (%) ▪ Total income up 9%, driven by strong 16% non-interest income growth 14% Corporate and Investment ▪ Net customer loans grew 10% and customer deposits rose 6% 11.4 13.0 21.1 Banking
Slide 8: Deon Raju, Financial Director
Deon Raju Financial Director
Slide 9: Solid 2H25 earnings growth off a high base
Solid 2H25 earnings growth off a high base Headline earnings (Rbn) 8% 27% 17% 12.9 2% 11.9 11.9 (5%) 10.5 10.7 (1%) 10.2 9.4 9.4 1H22 2H22 1H23 2H23 1H24 2H24 1H25 2H25 9
Slide 10: Non-interest income, lower credit charge drove earnings
Non-interest income, lower credit charge drove earnings Headline earnings (R’bn) Pre-provision profit up 4% 7% 6% 4% 2.9 (3.7) (6%) 1% 12% 2.8 0.9 (0.2) 24.8 22.1 Revenue up 5% FY24 Net interest Non-interest Operating Credit Other* FY25 income income expenses impairments 10 Note: * Includes other ex
Slide 11: Deposits the main drag on net interest margin
Deposits the main drag on net interest margin Change in net interest margin* (basis points) (3) 2 463 (12) (4) 2 (10) 9 453 (6) 1 Loans (1) Deposits (16) FY24 Pricing Mix Pricing Mix Endowment Capital ** Hedge *** Other FY25 11 Note: * average interest bearing assets; ** group equity endowment; ***
Slide 12: SA structural hedge helps maintain a stable margin
SA structural hedge helps maintain a stable margin Net interest margin (bps) Net interest margin impact yoy (bps) 456 468 463 446 453 21 16 8 9 (4) (12) (9) (14) (23) FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Hedge release Endowment impact 12
Slide 13: Balance sheet continues to grow
Balance sheet continues to grow Net customer loans (Rbn) Customer deposits (Rbn) 6% 6% 12% 7% 1 441 8% 1 354 9% 1 360 9% 1 277 3% 1 197 1 215 1 110 1 076 1 113 1 017 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 13
Slide 14: With loan growth improving in 2H25
With loan growth improving in 2H25 Net customer loans excluding reverse repurchase agreements (Rbn) 5% 41 1 269 6% 23 29 1 205 39 1 136 FY23 1H24 2H24 FY24 1H25 2H25 FY25 14
Slide 15: Strong Markets underpinned non-interest income growth
Strong Markets underpinned non-interest income growth Non-interest income (Rbn) 3% 4% 25.9 26.8 FY23 FY24 FY25 25.0 30% 11% 10.5 7.3 8.1 12% (3%) 12% (18%) 3.3 3.2 1.4 1.6 1.3 3.0 Net fee and commission Net trading Insurance Other 15 Note: Net trading excludes the impact of hedge accounting
Slide 16: Global Markets revenue growth was broad-based
Global Markets revenue growth was broad-based Global markets revenue (Rm) FY24 FY25 23% 5 522 51% 4 345 4 496 2 874 17% 1 289 11% 1 102 97 107 Fixed income, currencies Equities & Prime Africa regions Other and commodities 16
Slide 17: Inflationary growth in operating expenses
Inflationary growth in operating expenses FY25 Rm Change % Cost growth drivers (Rbn) Staff 36 373 8 4% 6% Property 1 982 1 8% 1.0 62.2 Technology 7 078 3 2.7 Depreciation 3 200 2 Professional fees 3 329 6 58.5 Marketing 2 298 8 Communication * 1 561 1 Cash transportation 966 (22) Amortisation 2 839
Slide 18: Credit loss ratio improved noticeably …
Credit loss ratio improved noticeably … Group credit loss ratio (bps) 118 Target range 75-100 103 96 88 77 FY21 FY22 FY23 FY24 FY25 18
Slide 19: … with asset quality improving across most books
… with asset quality improving across most books Stage coverage ratios (%) Credit loss ratio (%) FY24 FY25 FY23 FY24 FY25 Stage 1 0.66 0.62 0.61 PPB 1.89 1.69 Stage 2 7.17 5.98 5.30 Stage 3 45.0 47.4 45.8 Unsecured Lending 7.43 7.34 Home Loans 0.39 0.34 Non-performing loans (%) Vehicle and Asset Fin
Slide 20: CIB momentum continued
CIB momentum continued Headline earnings (R’m) ROE (%) 14% 20.7 21.1 13 008 Earnings contribution (%) 11 423 FY24 FY25 FY24 FY25 48% Cost-to-income ratio (%) Credit loss ratio (%) 46.9 45.9 0.27 0.21 CIB PPB BB AR PPB & BB FY24 FY25 FY24 FY25 20
Slide 21: Benefits from diversification, with strong Investment Bank growth
Benefits from diversification, with strong Investment Bank growth Headline earnings (Rm) 14% 13 008 FY24 FY25 11 423 26% 9 329 12% 7 397 7 467 16% 6 665 (9%) 5 541 4 758 4 026 3 679 Transactional Banking Investment Bank Total CIB South Africa Africa regions 21 Note: In constant currency total CIB he
Slide 22: Some positive signs as PPB gains traction
Some positive signs as PPB gains traction Headline earnings (R’m) ROE (%) 7% 17.6 7 535 17.0 Earnings contribution (%) 7 037 FY24 FY25 FY24 FY25 Cost-to-income ratio (%) Credit loss ratio (%) 28% 28% 50.6 52.3 1.89 1.69 CIB PPB BB AR PPB & BB FY24 FY25 FY24 FY25 22
Slide 23: Secured lending businesses drove PPB earnings growth
Secured lending businesses drove PPB earnings growth Headline earnings (Rm) 5% FY24 FY25 3 093 2 933 10% 1 773 1 611 52% (7%) (6%) 959 1 082 1 010 936 884 632 Transactions and Unsecured Lending Home Loans Vehicle and Asset Insurance SA Deposits Finance 23 Note: Excludes PPB Other.
Slide 24: Substantial opportunity to improve Business Banking performance
Substantial opportunity to improve Business Banking performance Headline earnings (R’m) ROE (%) (8%) 4 211 23.9 3 865 21.5 Earnings contribution (%) 14% 14% FY24 FY25 FY24 FY25 Cost-to-income ratio (%) Credit loss ratio (%) 54.1 57.3 0.55 0.49 CIB PPB BB AR PPB & BB FY24 FY25 FY24 FY25 24
Slide 25: Africa Regions PPB & BB strong revenue-driven growth
Africa Regions PPB & BB strong revenue-driven growth Headline earnings (R’m) ROE (%) 51% 2 519 17.1 Earnings contribution (%) 12.1 1 663 9% 9% FY24 FY25 FY24 FY25 Cost-to-income ratio (%) Credit loss ratio (%) 64.7 1.81 61.9 1.41 CIB PPB BB AR PPB & BB FY24 FY25 FY24 FY25 25
Slide 26: Strong Africa Regions PPB & BB Banking operations momentum
Strong Africa Regions PPB & BB Banking operations momentum Active customers (m) Revenue (Rbn) 14% 14% 19.1 16.8 3.0 2.7 2.4 2.1 FY24 FY25 1.8 Pre-provision profit (Rbn) 24% 7.4 5.9 FY21 FY22 FY23 FY24 FY25 FY24 FY25 26
Slide 27: CET1 ratio slightly above our target range
CET1 ratio slightly above our target range Group common equity tier 1 ratio (R’m) 2.0 (1.1) 12.5 12.6 (0.8) 12.7 Target range 11.0% - 12.5% FY23 FY24 RWA Profit Dividend FY25 27
Slide 28: 2026 outlook
2026 outlook Revenue Mid-single digit revenue growth, with non-interest income above net interest income Balance sheet Mid- to high single digit growth in customer loans and customer deposits Credit impairments Credit loss ratio expected to improve slightly, into the bottom half of through-the-cycle
Slide 29: Kenny Fihla, Chief Executive
Kenny Fihla Chief Executive Your story matters (absa}
Slide 30: Strong foundations and disciplined focus underpin our medium-term growth
Strong foundations and disciplined focus underpin our medium-term growth 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
Slide 31: 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