Commercial Bank Closes 79 Branches, Over 100 ATMs Amid Digital Shift
- Absa cut its traditional branch network by 18% over six months as more customers moved to mobile and online banking
- The South African bank's digitally active customers grew 14% across its operations during the same period
- Absa expanded its smaller Sales and Service outlets by 76% to 215 locations to partly replace the closed branches
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Absa Group has closed 79 traditional branches and removed more than 100 ATMs from its network in the first half of 2026, as demand for in-person banking services continued to fall across its operations.
The South African lender published the figures in its interim results for the six months to June 30, 2026, revealing a significant reshaping of how it delivers services to customers.
Source: Getty Images
The number of traditional branches dropped 18% to 359, while the bank's ATM network fell 2% to 4,976 machines. Absa said the shifts reflected changing customer behaviour rather than a withdrawal from the market.
The bank said:
"Evolving customer preferences and behaviour drove the transformation of the distribution network."
Digital Growth Drives the Shift
Across the group, the number of digitally active customers rose 14% year on year. Within South Africa alone, that figure climbed 10% to 3.8 million, while customers across its Africa Regions increased 21% to 1.6 million.
Absa said the growth in digital adoption was directly reducing the need for full-service branches and was reshaping how its retail network operated, BusinessDay reports.
To fill part of the gap left by branch closures, the bank expanded its smaller Sales and Service outlets by 76% to 215 locations during the period.
These outlets now account for 37% of Absa's total physical network, up from 22% previously, allowing the bank to maintain a presence in communities at a lower cost than traditional branches.
Earnings Rise Despite Consumer Pressure
Absa reported stronger financial results despite a difficult environment for South African households. Group headline earnings rose 8% to R12.807 billion, compared with R11.874 billion in the same period a year earlier.
The bank's credit impairment charges fell 1% to R7.099 billion, and the credit loss ratio improved to 0.94% from 1.00%. Non-performing loans also declined 5% to R82 billion.
Absa declared an interim dividend of 850 cents per share, up from 785 cents in the first half of 2025.
Source: Getty Images
The bank acknowledged that consumer conditions remained difficult. Household budgets were under pressure from elevated debt levels, slow real income growth, and higher fuel and food costs.
Inflation moved from 3.1% in March to 5% in June, and the South African Reserve Bank raised its repo rate by 25 basis points to 7% in May 2026.
Despite these pressures, the bank's shift to digital channels appears to be supporting its operational performance while reducing the cost of running a large branch network.
Niger State government closes Commercial Bank 2 branches
Earlier, Legit.ng reported that the Niger State Internal Revenue Service (NGSIRS) on Friday, June 5, 2026, sealed off two branches of Unity Bank in Minna over alleged unremitted tax liability of N1.7 billion to the state government.
This enforcement was carried out by the task force of the agency in the early hours of Friday, led by Musa Hayatullah, the Director of Tax Audit and Investigation.
The two Unity Bank branches sealed off by NGSIRS were located along Mobil Roundabout and Paiko Road within the Niger State capital, respectively.
Source: Legit.ng
