Absa shuts down 79 branches and over 100 ATMs in South Africa
Absa shuts down 79 branches and over 100 ATMs in South Africa as the banking group reshapes its physical network in response to changing customer behaviour and the growing use of digital banking services.
The changes were highlighted in Absa Group’s interim financial results for the six months ended 30 June 2026. The bank reported strong growth in digitally active customers, while traditional branches and ATM numbers continued to decline.
The restructuring reflects a broader transformation taking place across the banking industry, as customers increasingly use mobile applications, online banking platforms and other digital services instead of visiting physical branches.
Absa branch closures reflect changing customer behaviour
The latest figures show the scale of Absa branch closures across South Africa.
Absa said its traditional branch network declined by 18% to 359 branches during the reporting period. Based on the previous reporting period, this represents a reduction of approximately 79 branches.
The bank linked the decline to changing customer preferences and behaviour.
Customers are increasingly able to complete everyday banking tasks without visiting a branch. These include transferring money, paying bills, checking balances, making payments and managing certain financial products through digital platforms.
The decline in branch cash transactions has also contributed to the reduction in physical banking infrastructure.
For Absa, maintaining a large network of traditional branches becomes more difficult to justify when fewer customers depend on them for routine transactions.
However, the reduction does not mean that Absa is completely withdrawing from physical banking.
Smaller Sales and Service outlets expand
While traditional branches declined, Absa increased its smaller Sales and Service outlets.
The number of these outlets increased by 76% to 215 during the period. They represented 37% of the bank’s total network, compared with 22% in the previous reporting period.
This suggests that Absa is changing the way it provides face-to-face services rather than simply eliminating physical banking altogether.
Smaller outlets can potentially provide selected services while requiring less infrastructure than traditional full-service branches.
The strategy allows the bank to maintain a physical presence while shifting more everyday transactions towards digital channels.
Absa digital banking continues to grow
Absa digital banking has become increasingly important to the group’s strategy.
Across the Absa Group, the number of active digital customers increased by 14% year-on-year.
South Africa recorded a 10% increase in digitally active customers, taking the number to 3.8 million.
The Africa Regions performed even more strongly, with digitally active customers increasing by 21% to 1.6 million.
South Africa also recorded a 4% increase in active transactional customers.
The figures demonstrate how digital platforms are becoming central to the relationship between banks and their customers.
Instead of relying on branches for everyday transactions, customers can increasingly use smartphones and computers to access banking services at any time.
What the digital shift means for customers
The move towards digital banking can provide greater convenience for customers who have reliable internet access and smartphones.
Customers can often conduct transactions without travelling to a branch or waiting in a queue.
For banks, digital platforms can also reduce the costs associated with maintaining large physical networks.
However, the shift can create challenges for customers who are less comfortable with technology or who depend on cash-based transactions.
Some customers may also prefer face-to-face assistance when dealing with complicated financial matters.
This means banks must balance digital transformation with access to physical services.
Absa ATMs also decline
The changes are not limited to branches.
Absa ATMs also declined during the six months to 30 June 2026.
The bank reported that its ATM network decreased by 2% to 4,976 machines. This represents a reduction of more than 100 ATMs from the previous reporting period.
The reduction is consistent with the broader move away from cash transactions.
As more customers make electronic payments and use mobile banking applications, demand for cash withdrawals can decline.
However, ATMs remain important for customers who still use cash, particularly in communities where digital banking access may be limited.
The reduction in ATM numbers therefore highlights the challenge facing banks as they modernise their networks while continuing to serve customers with different banking needs.
South Africa banking industry undergoes transformation
The changes at Absa form part of a much larger trend in South Africa banking.
Traditional banking models are being reshaped by mobile technology, digital payments and changing customer expectations.
Customers increasingly expect banking services to be available quickly and conveniently through digital platforms.
Banks are consequently investing heavily in mobile applications, online banking, cybersecurity and digital customer support.
The growth of digital banking has also increased competition between financial institutions and technology-driven financial services providers.
For customers, this competition can lead to greater convenience and more digital products.
For traditional banks, however, it creates pressure to reduce costs while continuing to provide reliable services.
Absa financial results remain strong
Despite the restructuring of its physical network and challenging economic conditions, Absa reported stronger overall financial results.
Headline earnings increased by 8% to R12.807 billion for the first six months of 2026, compared with R11.874 billion during the same period in 2025.
Total income increased by 4% from R56.487 billion to R58.791 billion.
Pre-provision profit also increased by 4%, rising from R26.443 billion to R27.398 billion.
The bank’s return on equity improved from 14.8% to 15.0%.
Absa’s credit performance also showed improvement. Credit impairment charges declined by 1% to R7.099 billion, compared with R7.173 billion in the first half of 2025.
The credit loss ratio improved from 1.00% to 0.94%.
Non-performing loans decline
Absa reported that non-performing loans declined by 5% to R82 billion.
Their share of gross loans and advances fell to 5.3%, compared with 5.9% a year earlier.
The improvement indicates that credit conditions were not uniformly deteriorating despite pressure on consumers and businesses.
However, Absa said consumers continued to face affordability challenges because of elevated debt levels, modest real income growth and higher fuel and essential living costs.
Consumer inflation increased from 3.1% in March to 5.0% in June, according to the bank.
The South African Reserve Bank also increased the repo rate by 25 basis points to 7.0% in May.
These conditions have made household finances more difficult for many consumers.
Digital banking transformation will continue
The latest changes suggest that digital banking transformation will remain a central part of Absa’s strategy.
The bank is reducing traditional branches while expanding smaller Sales and Service outlets and investing in digital capabilities.
This model could allow Absa to reduce its physical operating costs while continuing to offer customers access to selected face-to-face services.
The challenge will be ensuring that customers are not left behind as more banking services move online.
Digital transformation must therefore consider accessibility, digital literacy and the needs of customers who still depend on physical banking facilities.
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What Absa’s changes mean for customers
Absa’s decision to reduce its branch and ATM network signals how quickly banking habits are changing in South Africa.
The closure of approximately 79 traditional branches and more than 100 ATMs does not mean customers will lose access to all physical banking services.
Instead, Absa is moving towards a smaller physical footprint supported by Sales and Service outlets and expanding digital channels.
For customers, the biggest change is likely to be where and how they conduct routine banking activities.
Those who already use mobile and online banking may notice little disruption. Customers who depend heavily on branches and cash services, however, may need to adjust their banking habits.
Absa’s latest results show that the transformation is happening alongside continued financial growth.
As digital adoption increases, South Africa’s banking sector is likely to continue moving away from large traditional branch networks towards technology-driven services.
The Absa branch closures therefore represent more than a reduction in physical locations. They are part of a wider digital banking transformation that is changing how South Africans interact with their banks.
References
- BusinessTech – Absa shuts down 79 branches and over 100 ATMs in South Africa
Read the BusinessTech report - BusinessDay – Digital shift pushes Absa to close 79 branches and over 100 ATMs
Read the BusinessDay report - Absa Group – Official financial and corporate information
Absa Group Media Centre - Absa – Branch and ATM locator
Absa Branch and ATM Locator
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