Absa Group has written off R2.4-billion in software program belongings after a revision of its total technique led to modifications in funding priorities and faster-than-expected know-how obsolescence, its annual monetary statements present.
The software program impairments – greater than 13 instances the R179-million written off a 12 months earlier – had been unfold throughout the group, with the biggest hit taken by head workplace, treasury and different operations (R1.1-billion), adopted by private and personal banking (R611-million), company and funding banking (R559-million), Africa areas (R63-million) and enterprise banking (R43-million).
Absa mentioned the recoverable quantity of the affected software program belongings was decided to be zero.
“The group’s total technique was revised, leading to modifications within the prioritisation of strategic funding,” the financial institution mentioned in its outcomes for the 12 months ended 31 December 2025. “Moreover, the tempo of technological change continues to escalate, leading to quicker software program obsolescence than beforehand skilled.”
The write-downs contributed to a pointy improve in complete different impairments, which rose to R3.2-billion from R914-million in 2024. Property and gear impairments of R629-million, linked to the group’s property consolidation plan, accounted for a lot of the rest.
The carrying worth of Absa’s pc software program improvement prices fell to R13.7-billion from R15.2-billion a 12 months earlier, regardless of R3.9-billion in new additions throughout the 12 months. Amortisation consumed R2.8-billion whereas the R2.4-billion in impairments erased a lot of the worth created by new funding. Software program belongings beneath development totalled R4.5-billion at year-end.
Deceleration
Absa’s IT spending – as reported in its working bills and excluding workers prices – rose 3.4% to R7.1-billion within the 2025 monetary 12 months from R6.8-billion a 12 months earlier, a marked slowdown from the 13% development recorded in FY2024.
The deceleration locations Absa on the decrease finish of the IT spending development spectrum amongst South Africa’s massive 5 banks. As TechCentral reported in September, Capitec led the sector with a 32% year-on-year improve in IT spending to R2.5-billion for the 12 months ended February 2025, pushed by a virtually 40% surge in cloud computing prices.
Learn: Inside Customary Financial institution’s R1-billion enterprise banking overhaul
FirstRand’s IT prices rose 9% to R10.9-billion, Nedbank’s grew 7% to R7.4-billion – the latter reflecting the completion of its multi-year IT modernisation programme – and Customary Financial institution elevated spending by simply 2% to R12.7-billion, although it stays the biggest IT spender within the sector by a substantial margin.
Absa didn’t present an in depth breakdown of its IT spending in its annual monetary statements, however the mixture of decrease spending development and a big write-off of legacy software program suggests a financial institution within the midst of reassessing its know-how portfolio beneath its revised technique.
The outcomes had been launched beneath the watch of CEO Kenny Fihla, who was appointed in June 2025 and has been tasked with sharpening the group’s strategic path. The financial institution reported headline earnings development of 12.25% to R24.8-billion for the interval, with complete earnings rising 5.2% to R115.7-billion. — (c) 2026 NewsCentral Media
Get breaking information from TechCentral on WhatsApp. Enroll right here.
