Absa Group Ltd. (ABGJ.J): 6M26 trading update conference call takeaways

Research evidence excerpt

Absa Group Ltd. (ABGJ.J): 6M26 trading update conference call takeaways

Goldman Sachs Absa Group Ltd. (ABGJ.J)

higher Africa Regions impairments reflect normalization from a low base rather than

specific problem credits.

n Loans: Management noted loan growth was slightly below previous full-year

expectations. They mentioned wholesale banking delivered stronger growth while

retail remained softer. Management reiterated that pipelines and lead indicators

support stronger momentum during the second half.

n Earnings: Management guided for mid- to high-single-digit headline earnings

growth. They noted that strong South African earnings offset weaker Africa Regions

performance. Management mentioned ROE should remain around 15% for FY26.

n PPB segment: Management noted PPB should deliver low-double-digit earnings

growth. They highlighted lower credit impairments as a key earnings driver.

Management also mentioned continued growth in affluent and private banking

customers.

n BCB segment: Management noted business banking earnings growth should remain

modest overall. They highlighted stronger performance from South Africa than

Africa Regions. Management mentioned improving customer activity and growing

loan and deposit balances.

n CIB segment: Management reiterated that CIB earnings are expected to remain

broadly flat. They noted strong investment banking and global markets performance

offset transactional banking weakness. Management highlighted recent client wins

are expected to come in from 2027. They believe improved deal origination and

advisory capabilities should support medium-term growth.

Exhibit 1: 6M26 trading update

2026E 2027-2030E

2025 New management guidance

Old management guidance GSe VA Consensus Mgmt. guidance

(1H26)