Absa Group reported headline earnings of R22.1 billion for the full year 2024, a 10% increase on the prior year, the South African banking group disclosed in results published on 11 March 2025. Revenue reached R109.9 billion, up 5%, as the group delivered what management described as a material recovery in second-half performance following a more subdued first half.
Return on equity for the year came in at 14.8%. Operating costs of R58.5 billion also rose 5%, leaving cost growth broadly in line with the rate of revenue expansion.
CREDIT QUALITY
The credit loss ratio narrowed from 118 basis points recorded in the 2023 financial year to 103 basis points in 2024. The improvement was driven by lower retail credit losses in South Africa on the back of collections efforts, selective risk reduction and interest rate cuts, although Stage 3 loans still grew 6% to R86 billion. The credit loss ratio remains slightly above the group's through-the-cycle target range of 75 to 100 basis points.
SUSTAINABLE FINANCE TARGET
Absa confirmed in its results that it has reached its target of R100 billion in sustainable financing ahead of its 2025 deadline, a milestone the bank highlighted as evidence of its commitment to embedding environmental and social considerations into its core lending and financing activities.
Improving returns on equity to more normalised levels remains a stated objective as the group continues to execute against its medium-term strategic targets.