Absa Loses $1.35 Billion in Value as 2026 Return Target Falls to 15%
Updated
Updated · Business Insider Africa · Jul 17
Absa Loses $1.35 Billion in Value as 2026 Return Target Falls to 15%
3 articles · Updated · Business Insider Africa · Jul 17
Summary
$1.35 billion in market value has been wiped from Absa since January, with the stock down more than 11% as investors reassess CEO Kenny Fihla’s turnaround timetable.
A June 30 trading update triggered the sharpest sell-off, erasing more than $860 million in one session after Absa cut its 2026 return-on-equity goal to about 15% from 16%-17%.
The bank also guided to only low- to mid-single-digit revenue growth and mid- to high-single-digit first-half earnings growth, citing a stronger rand, lower rates, slower African growth and Middle East-related geopolitical risks.
Analysts say the slide reflects doubts about execution speed rather than a rejection of Fihla’s pan-African strategy, which Absa says remains intact alongside a roughly 55% dividend payout ratio.
The setback follows a late-2025 rally driven by Fihla’s arrival and stronger results, and underscores how regional lenders are being squeezed by volatile currencies, weaker demand and thinner margins across Africa.