South Africa's major banks lift 2025 headline earnings 9.4% to R152.5bn, PwC finds

South Africa's six major banks increased their combined headline earnings by 9.4% to R152.5 billion in 2025, according to PwC's Major Banks Analysis published on 17 March 2026. The review covers Absa, Capitec, FirstRand, Investec, Nedbank and Standard Bank.

Combined return on equity rose to 20%. Costs increased 6.9%, below operating income growth of 7.2%, giving the banks positive operating leverage. PwC attributed the earnings growth to disciplined cost control, improved credit quality and robust non-interest revenue.

Customer deposits climbed to a combined R8.3 trillion and gross loans and advances reached R6.8 trillion, reflecting continued demand for credit from households and businesses as the South African economy recovered.

"The 2025 results reveal an industry that has navigated macro headwinds and delivered record earnings in several cases," said Costa Natsas, financial services leader for PwC Africa.

DIGITAL COMPETITION INTENSIFIES

The analysis found the major banks are accelerating spending on migration to cloud and hyperscaler platforms, artificial intelligence and cybersecurity as digitally native challengers increase competitive pressure. "South Africa's major banks continue to compete intensely on digital growth, with client acquisition and transaction volumes increasing through mobile-first platforms," said Rivaan Roopnarain, a banking and capital markets partner at PwC South Africa. "Investments in cloud-based core systems, hyperscaler platforms and emerging technologies such as generative and agentic AI are helping banks accelerate modernisation, enhance operational efficiency and deliver more personalised client experiences," he said.

Yusuf Bismilla, digital trust partner at PwC South Africa, described AI as a strategic business imperative for the sector. PwC also noted that the banks are pursuing pan-African expansion and using AI-enabled tools to improve productivity, and expects regulatory scrutiny of AI governance to tighten as banks move beyond pilot projects.