ABG Trading Update Neutral
ABSA GROUP LIMITED - Voluntary trading update for the six months ending 30 June 2026
Absa Group Limited
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What this filing means
ABSA guides 1H26 headline earnings growth of mid- to high single digits with RoE held near the 14.8% in 1H25 — solid underlying performance. The constructive read is real: South Africa is strong, the capital position is well above target, and non-interest income is growing faster than net interest income. The offsetting pressure is margin compression in Africa Regions and slightly negative JAWS, both flagged clearly. With the share already up 7.2% into the print, the positive case was largely p…
Bull case
- Headline earnings are guided to grow mid- to high single digits in 1H26 with RoE holding near the 14.8% delivered in 1H25.
- PPB is expected to deliver low double-digit headline earnings growth, partly aided by lower credit impairments.
Bear case
- Operating leverage slips: low-to-mid single-digit revenue growth matched by similar opex growth yields slightly negative JAWS and a higher cost-to-income ratio.
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