Absa profit jumps 18% to P377m
Pauline Dikuelo | Monday September 21, 2026 06:00
During the reporting period, the group's total income grew by 14% to P1.3 billion, reflecting growth across the bank’s core business segments, although business banking performance remained comparatively subdued.
Presenting the bank's financial results for the period ended June 30, 2026, bank officials attributed the performance to disciplined asset selection across priority sectors, diversification of its product offering, and continued investment in product and platform capabilities.
“A defining feature of our performance was the continued diversification of our earnings,” said officials.
The bank’s non-interest income delivered strong growth, underpinned by foreign exchange trading, higher transactional and customer activity, and increased adoption of transactional banking solutions. During the reporting period, its Corporate and Investment Banking increased its contribution to revenue, supported by a 157% increase in global markets net trading income to P262 million.
Despite the earnings growth, net loans and advances to customers declined by three percent during the period to P18.1 billion from P18.5 billion at December 2025.
Personal and private banking loans increased marginally to P11.9 billion, whilst business banking loans grew by seven percent to P1.6 billion. Corporate and Investment Banking loans decreased by seven percent to P4.5 billion.
Customer deposits stood at P19.8 billion, compared with P20.7 billion at December 2025.
'The reduction was largely attributable to the deliberate run-off of higher-cost fixed deposits as the bank optimised its funding mix and costs,' officials said.
However, the officials said general customer deposit balances recovered during the second quarter as market liquidity conditions improved.
The improved earnings and capital position supported the board’s decision to declare an interim dividend of 28.87 thebe per share, totalling P246 million, subject to regulatory approval.
Beyond its financial performance, Absa continued to support Botswana’s economic development through clean energy financing and SME funding. During the first half of 2026, the bank disbursed P32.3 million towards renewable energy solutions for business clients through the Green Energy Loan, supporting Botswana’s renewable energy agenda in line with the 2025 National Energy Compact.
'Looking ahead, we would focus on deepening sustainable finance solutions, measuring its environmental impact and embedding sustainability capabilities across the organisation,' officials said.
The bank also provided P96.6 million in SME funding, alongside enterprise development initiatives aimed at strengthening financial management, business resilience and business growth. The bank also continued financial literacy and women in business training programmes aimed at equipping entrepreneurs with skills and knowledge to develop sustainable enterprises.
Furthermore, Absa signed a Memorandum of Understanding with MMG Khoemacau to expand supply chain financing, accelerate local enterprise development, and enable more local businesses to participate in the mining sector value chain.
The Bank officials said the relaunch of Spark by Absa Wallet, together with growth in digital payments and self-service channels, contributed to a six percent year-on-year increase in the bank’s customer base to more than 380,000.