Absa Group shares rise 4.2% following positive trading update

ABSA Group’s share price increased 4.2% Monday morning after it reported that its second half performance was in line with their expectations and largely in line with guidance, while impairments would decline.

- EDWARD WEST

Second half trends were in line with expectations, and with the group's guidance from August 18, 2025, as well as the outlook for 2026 and the medium-term targets, the bank said in a voluntary update Monday.

The share price was up 4.2% to R225.69 on Monday morning on the JSE, an increase that made Absa the biggest mover on the market at the time, and a price that was 13.9% higher than that R198.26 price at the same time last year.

For the 2025 financial year, “we expect mid-single digit revenue growth, with stronger growth in non-interest income than net interest income. Net interest income growth will remain muted, due to modest retail loan growth in South Africa and slight margin compression,” the bank directors said.

However, “it will improve in the second half.” Midto high single digit customer loan growth was expected, driven by strong second half growth in wholesale lending, and mid-single digit deposit growth.