Absa branch closures accelerated in the first half of 2026, with the bank reporting roughly 79 fewer traditional branches and more than 100 fewer ATMs in South Africa over six months. Group headline earnings rose 8% to R12.807bn in the same period.
For customers who still queue at a counter or draw cash from a machine, the practical effect is a thinner physical network in a year when borrowing costs went up rather than down.
The figures come from Absa Group Limited’s unaudited consolidated interim results for the six months ended 30 June 2026, published on the JSE Stock Exchange News Service on Tuesday morning and presented to investors later the same day.
Absa reported traditional branches down 18% to 359. Its ATM fleet fell 2% to 4,976 machines.
Absa branch closures explained in the interim results
Absa attributed the change to customer behaviour, saying that “evolving customer preferences and behaviour drove the transformation of the distribution network”. It also pointed to a decline in branch cash transaction volumes.
Group digitally active customers rose 14% year on year. In South Africa, digitally active customers increased 10% to 3.8 million, while Africa Regions recorded a 21% rise to 1.6 million.
The shift mirrors a wider industry move that has already brought new digital banking competitors into the South African market and pushed incumbents to defend transactional customers on price and app functionality rather than footprint.
Absa is not the only lender rebuilding around digital channels. The same pressure sits behind the industry’s voice biometric security rollout, which is designed for customers who no longer walk into a branch to be identified in person.
What fewer branches and ATMs mean for Absa customers
The headline reduction is not the full picture, and the arithmetic in Absa’s own disclosure matters here.
While traditional branches fell to 359, the group grew smaller sales and service outlets by 76% to 215. Those outlets now account for 37% of the total network, up from 22% in the comparative period.
Working backwards from those percentages, the combined network moved from roughly 560 outlets to 574. The total number of places a customer can walk into therefore appears to have grown slightly, while the number offering full cash and teller services shrank sharply.
That distinction is the one that affects households directly. Sales and service outlets are built for account opening, advice and digital assistance rather than cash handling, so a customer whose nearest full-service branch has been converted may still need to travel further for over-the-counter cash.
Tshiwela Mhlantla, Absa managing executive for Integrated Channels in Personal and Private Banking, has previously said the bank is modernising rather than abandoning its physical channels, and continues to invest in its ATM estate.
The numbers behind the half-year result
| Measure | 30 June 2025 | 30 June 2026 | Change |
|---|---|---|---|
| Total income | R56,487m | R58,791m | +4% |
| Operating expenses | R30,044m | R31,393m | +4% |
| Pre-provision profit | R26,443m | R27,398m | +4% |
| Credit impairments | R7,173m | R7,099m | -1% |
| Headline earnings | R11,874m | R12,807m | +8% |
| Dividend per share | 785 cents | 850 cents | +8% |
Headline earnings per share came in at 1,545.4 cents. Return on equity improved to 15.0% from 14.8%.
The R12.807bn headline earnings figure converts to roughly $788m at the 16.2516 rand-per-dollar rate cited by Reuters on the results date.
South African headline earnings rose 17% to R9.2bn. Africa Regions earnings fell 10% to R3.6bn, contributing 30% of group revenue and 28% of headline earnings.
By division, Corporate and Investment Banking earnings rose 1% to R6.2bn, Personal and Private Banking rose 12% to R4.1bn, and Business Banking rose 5% to R2.7bn.
Credit metrics improved. The credit loss ratio fell to 0.94% from 1.00%, non-performing loans dropped 5% to R82bn, and the Common Equity Tier 1 ratio strengthened to 12.8% from 12.5%.
Not every unit gained. Personal Loans recorded a R38m headline earnings loss, Transactional Banking within CIB fell 13% to R1.508bn, and Africa Regions Business Banking earnings dropped 18% to R346m.
Consumer pressure behind the digital shift
Absa described the operating environment as challenging, noting that consumer inflation climbed from 3.1% in March to 5.0% in June, driven largely by higher fuel prices. That June figure sits well above the South African Reserve Bank’s 3% inflation target.
The SARB policy rate was raised by 25 basis points to 7.00% effective 29 May 2026, lifting the prime lending rate to 10.50%. The Monetary Policy Committee split four to two on the decision.
SARB Governor Lesetja Kganyago said at the time that the move was “aimed at managing risks and ensuring that inflation returns to target”.
Absa said consumer affordability remained constrained by elevated debt levels, modest real income growth and higher fuel and essential living costs. Those pressures sit alongside broader household cost of living pressures tracked by the Competition Commission earlier this year.
Group Chief Executive Kenny Fihla, presenting the full-year results in March 2026, credited the group’s improving performance to “clear momentum from disciplined execution, sharper client focus”. Absa has not published a comparable new quotation attributed to him in the interim results material reviewed for this article.
What is still unconfirmed and what comes next
Absa has not published a list of which branches closed or in which towns and provinces. The 79 figure is a net reduction in traditional branches derived from the reported 18% decline, and Absa’s results describe the comparison only as against the previous reporting period, so the exact comparative base is not stated in the material reviewed. Whether any staff were affected is also not disclosed.
Absa’s board declared an interim ordinary dividend of 850 cents per share, up 8% from 785 cents, maintaining a 55% payout ratio.
For the 2026 full year, the group guided to low to mid single digit revenue growth, high single digit growth in customer loans, mid to high single digit growth in customer deposits, a credit loss ratio similar to 2025 and in the middle of its 75 to 100 basis point target range, return on equity of about 15%, and a 55% payout ratio.
Absa expects South African economic growth of 1.5% in 2026, up from 1.1% in 2025, and expects interest rates to remain unchanged into early 2027. It flagged El Niño as a possible risk to parts of the agricultural sector from late 2026, offset by record crop surpluses in recent seasons.
The next scheduled disclosure of Absa’s branch and ATM numbers is its full-year results, which the group has published in early March in each of the past three years.
