Absa Group’s IT spend for the six months to 30 June reached R8.2-billion, a 5% year-on-year increase from the same period in 2024, as it ramped up spending on security and AI.
The total amount spent on IT includes staff costs, amortisation and depreciation. With these excluded, technology spend was R3.5-billion for the six months, up 7% from the same period a year ago. IT-related staff costs for the period amounted to R2.2-billion.
“Absa increased its investment in IT-related spend, with costs increasing 5% to R8.2-billion, mainly reflecting investment into new digital capabilities resulting in higher cybersecurity, as well as software licence and maintenance costs,” Absa said in a statement on Monday alongside its interim financial results.
“Ongoing investments in new technologies, digitisation and the use of AI are expected to yield benefits through operational streamlining and automation, which will further enhance delivery on client-centric solutions.”
According to Absa, part of its IT spend is directed towards investments in new technologies aimed at improving operational efficiency and reducing cost in its South African operations. It said ongoing efforts to digitise back-office operations are expected to yield further benefits through operational streamlining and automation.
In the second half of the year, Absa aims to intensify its use of process automation and AI-driven workflows across its customer service channels, collections and transaction processing “to boost efficiency”.
Digital growth
“Technology is also playing an important role in making the bank’s handling of cash more efficient,” it said. “The personal and private banking cluster is optimising the end-to-end cash value chain and shifting towards high-efficiency, tech-enabled branches and ATMs, ensuring cost-effective coverage while maintaining inclusive, accessible service for key customer segments,” said Absa.
Absa grew its digitally active customers by 13% year on year to 3.4 million. Higher rates of digital interaction have given the bank “a more nuanced understanding of customer needs and behaviours”, allowing it to develop solutions more fitting their needs.
Read: Absa CEO Fihla to ditch ‘prison’ branches and revamp customer focus
“Customers are served through an extensive integrated channel network across physical and virtual points of presence, including partnerships, and more increasingly through digital,” said Absa.
The bank posted a 17% rise in half-year headline earnings as credit impairments declined and pre-provision profit grew. It posted headline earnings of R11.9-billion. The group declared an interim dividend of R7.85/share. – © 2025 NewsCentral Media, with additional reporting (c) 2025 Reuters
Get breaking news from TechCentral on WhatsApp. Sign up here.
