The Development Bank of Southern Africa (DBSA) posted its highest-ever net profit of R7.8 billion for the year ended March 2026, as higher income, increased lending and lower impairment provisions lifted earnings by 47 percent.
The development finance institution said net profit rose from R5.3 billion a year earlier, while loans and equity disbursements increased 18.3 percent to R20.7 billion, indicating stronger financing activity despite a deteriorating global economic environment.
‘Net profit for the current year increased by 47.0 percent from R5.3 billion to R7.8 billion,’ the bank said, attributing the increase to a 5.6 percent rise in net interest income, a 21.7 percent increase in operating income, 7.8 percent asset growth and a 38 percent reduction in impairment provisions.
Net interest income rose to R8.9 billion from R8.4 billion, while operating income increased to R10.6 billion from R8.8 billion. Interest expense fell 11.2 percent to R4.5 billion, helping push the cost-to-income ratio down to 20.3 percent from 22 percent.
Impairment losses fell to R930 million from R1.5 billion, while other interest income more than doubled to R469 million. The bank also recorded R1.4 billion in fair-value gains on financial instruments, compared with R31 million a year earlier.
Sustainable earnings rose 44.6 percent to R7.4 billion, while return on equity based on net profit increased to 12.7 percent from 9.7 percent.
The stronger earnings came alongside an expansion of the balance sheet. Total assets rose 7.8 percent to R130.5 billion, while gross development loans and development bonds increased 5.1 percent to R120.4 billion. Equity investments climbed 20.8 percent to R5.5 billion.
DBSA said its development financing translated into R62.4 billion in total infrastructure development support. This comprised R20.7 billion in loans and equity disbursements, R17 billion in prepared projects approved and programmes enabled, R14.7 billion in funds catalysed, R6.5 billion in infrastructure value delivered and R3.5 billion unlocked for under-resourced municipalities.
At the presentations, Enoch Godongwana, South Africa’s Minister of Finance, commended the DBSA for not just financing projects but strengthening institutions, improving capability and helping to convert policy ambition into tangible results.
‘The results being presented today demonstrate the institutional value of bridging the gap between strategy and implementation,’ he said. ‘In a challenging environment, impact is measured not only by approvals and disbursements, but by infrastructure delivered, services improved, jobs created and lives changed.’
DBSA said its ‘liquidity and capital position remains strong’ despite the operating environment. Its debt-to-equity ratio excluding R20 billion in callable capital improved to 95 percent from 105 percent, while the capital ratio increased to 50 percent from 48 percent.
The bank said the year was marked by weaker global growth, higher costs, disrupted supply chains and geopolitical tensions, including the Gulf conflict and disruption of the Strait of Hormuz, which pushed oil prices higher and global inflation above central bank targets.