Absa: H1 profit up 12%, but 7% dividend yield and P/E of 7.7 make shares attractive

25 августа Absa раскрыла результаты за первое полугодие 2026 года: чистая прибыль выросла на 12% год к году, до 24,6 млрд ZAR (за последние 12 месяцев). Рентабельность капитала составила 13,3%, а дивидендная доходность за trailing 12 месяцев – 7,05%. При текущей цене акции выглядят привлекательно: мультипликатор P/E 7,7 находится на разумных уровнях, а по модели портала потенциал роста составляет +13%.

Key takeaways

— Net profit for the half-year rose 12% YoY to ZAR 24.6 billion

— ROE of 13.3% supports a dividend yield of 7.05%

— P/E of 7.7 is below historical averages, implying upside of +13% on the portal's model

— Operating cash flow is not a result metric for a bank

— Shares are in the ZA Banks strategy on the portal, but this is not an argument for the verdict

Attractiveness

Key figures, ZAR bn

Net profit for the half-year rose 12% YoY to ZAR 24.6 billion

For the first half of 2026, Absa reported a 12% increase in net profit compared to the same period a year earlier. In absolute terms, profit for the trailing twelve months reached ZAR 24,613 million, reflecting business resilience amid moderate economic growth.

The main driver was growth in net interest income, which reached ZAR 117,700 million over the trailing twelve months. The bank continues to expand its loan book and control funding costs, supporting its margin.

ROE of 13.3% supports a dividend yield of 7.05%

Return on equity for the trailing twelve months was 13.3%, a healthy level for the banking sector. This allows Absa to pay generous dividends: the trailing twelve-month yield is 7.05%, significantly above the market average.

The high dividend yield is supported by stable profit generation and an adequate capital level. For income-oriented investors, this makes the shares attractive, especially in a low deposit rate environment.

P/E of 7.7 is below historical averages, implying upside of +13% on the portal's model

The current P/E multiple is 7.72, noticeably below the three-year average for South African banks. Such valuation suggests the market is pricing in conservative growth expectations, while actual results show solid momentum.

According to the portal's model, based on the relationship between return on equity and book value, the fair value of the shares is 13% above the current market price. This indicates upside potential, especially if the bank continues to deliver double-digit profit growth.

Operating cash flow is not a result metric for a bank

For banks and other financial institutions, operating cash flow reflects changes in client balances and central counterparty positions, not business performance. Therefore, in this review we deliberately omit this metric and do not base any conclusions on it.

Investors should evaluate Absa using metrics such as net interest margin, cost of risk, and return on equity, which provide a more accurate picture of the bank's financial health.

Shares are in the ZA Banks strategy on the portal, but this is not an argument for the verdict

Absa is part of the 'ZA Banks' model strategy on our portal. This means the stock passes a screening based on certain criteria, but inclusion itself is not a buy or sell recommendation.

The decision on the attractiveness of the shares should be based on fundamental metrics such as earnings, profitability, and valuation, which we review in this analysis.

Valuation on the latest reported figures

Bottom line

Absa показала достойные результаты за первое полугодие 2026 года: чистая прибыль выросла на 12% год к году, а рентабельность капитала осталась на уровне 13,3%. Дивидендная доходность 7,05% выглядит привлекательно, особенно на фоне P/E 7,7, который ниже исторических средних. По модели портала акции имеют потенциал роста +13%, что усиливает аргументы в пользу покупки. Однако инвесторам стоит следить за качеством кредитного портфеля и макроэкономическими условиями, которые могут повлиять на дальнейшую динамику.