South African lender Absa expects mid-single digit revenue growth in 2025, supported by an improved macroeconomic environment and fewer bad loans, following a 10% increase in annual profit.
Key Financial Highlights (FY 2024):
• Headline earnings per share: 26.62 rand
• Total revenue: 109.9 billion rand ($6 billion) (+5% YoY)
• Net interest income: 71 billion rand (+4% YoY)
Growth Drivers
Absa’s retail and small business customers benefited from easing inflation, lower interest rates, and fewer power blackouts, improving overall financial stability.
“Based on these assumptions, we expect mid-single digit revenue growth in 2025, with similar growth in net interest income and non-interest income,” Group Financial Director Deon Raju told investors.
Retail Banking & Cost-Saving Strategy
Absa is restructuring its retail units and products into a single retail banking unit to streamline operations and enhance revenue growth in South Africa.
“We believe this consolidation will accelerate our retail turnaround and drive stronger revenue trends in the medium term,” said interim CEO Charles Russon.
Additionally, the bank is targeting 5 billion rand in cost savings by 2027 through:
• Reducing head office expenses
• Investing in automation to improve efficiency
Outlook for 2025
With better economic conditions, digital transformation, and operational efficiencies, Absa remains focused on sustainable growth and profitability across its 16-country footprint.
