--- title: Absa writes off another R200-million in software | daily.dev description: Absa Group impaired a further R200-million in software assets in the six months to June 2026, almost three times the R74-million impaired in the same period... canonical: https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu twitter:card: summary_large_image twitter:site: @dailydotdev og:type: website og:site_name: daily.dev og:title: Absa writes off another R200-million in software | daily.dev og:description: Absa Group impaired a further R200-million in software assets in the six months to June 2026, almost three times the R74-million impaired in the same period... og:url: https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu og:image: https://api.daily.dev/og/posts/GfoKSECnu.png og:image:alt: Absa writes off another R200-million in software og:image:width: 1200 og:image:height: 630 og:locale: en --- > ## Documentation Index > Fetch the complete documentation index at: https://daily.dev/llms.txt > Use this file to discover all available pages before exploring further. # Absa writes off another R200-million in software **[TechCentral](https://daily.dev/sources/techcentral)** · 4 min read · 0 upvotes · 0 comments ## Summary Absa Group impaired a further R200-million in software assets in the six months to June 2026, almost three times the R74-million impaired in the same period the prior year, and mostly originating from head office. This follows a R2.4-billion write-off disclosed in March that Absa attributed to a strategy rethink and accelerating technology obsolescence, partly driven by AI. CITO Johnson Idesoh has said the write-downs stem from over 100 small assets rather than one large failed project, citing group strategy changes, regulatory shifts, and faster tech cycles, plus a move from owning software to consuming it as a service. Meanwhile, total IT spend rose 7% to R8.78-billion in the half (28% of operating expenses), even as intangible assets on the balance sheet shrank 11% to R14.2-billion. Absa continues to run IBM z16 mainframes while modernizing architecture and renewing cloud partnerships with AWS and Huawei. ## Full article daily.dev links to this article rather than hosting it. Read it at the original source: ## Questions this post answers ### Why did Absa write off software assets again after the R2.4 billion impairment earlier in the year? Absa impaired a further R200 million in software assets in the six months to June 2026, following the R2.4 billion write-off disclosed in March. The bank said certain software assets had a value in use of zero, mainly from head office, driven by a group strategy rethink, regulatory changes, and faster technology obsolescence partly accelerated by AI. _Track how banks like Absa are navigating AI-driven technology obsolescence on daily.dev._ ### How much does Absa spend on IT compared to its total operating expenses? Absa's total IT spend, including staff, amortisation and depreciation, rose 7% to R8.78 billion in the first half of the year, representing 28% of the group's R31.4 billion operating expense base. This is higher than the roughly 25% CITO Johnson Idesoh cited in May, with full-year FY2025 IT spend including staff costs at R16.7 billion. _Compare enterprise IT spending patterns across banks and tech firms on daily.dev._ ## Similar posts on daily.dev - [The real reason Absa wrote off R2.4-billion in software](https://daily.dev/posts/the-real-reason-absa-wrote-off-r2-4-billion-in-software-1tufrk9tv) · TechCentral · 0 upvotes · 0 comments - [Standard Bank IT bill tops R14-billion as software spending shifts](https://daily.dev/posts/standard-bank-it-bill-tops-r14-billion-as-software-spending-shifts-hmtt3twau) · TechCentral · 0 upvotes · 0 comments - [AI spreads at Standard Bank, but the tech bill barely budges](https://daily.dev/posts/ai-spreads-at-standard-bank-but-the-tech-bill-barely-budges-xp2hjedwx) · TechCentral · 1 upvotes · 0 comments - [Meet the CIO \| Absa CITO Johnson Idesoh on AI, cyber and the future of banking](https://daily.dev/posts/meet-the-cio-absa-cito-johnson-idesoh-on-ai-cyber-and-the-future-of-banking-qhbqziybt) · TechCentral · 0 upvotes · 0 comments --- Tags: [#fintech](https://daily.dev/tags/fintech) [View this post on daily.dev](https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu) ```json {"@context":"https://schema.org","@graph":[{"@type":"Organization","@id":"https://daily.dev/#organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180},"sameAs":["https://twitter.com/dailydotdev","https://github.com/dailydotdev","https://www.linkedin.com/company/daily-dev-ltd"]},{"@type":"WebSite","@id":"https://daily.dev/#website","url":"https://daily.dev","name":"daily.dev","publisher":{"@id":"https://daily.dev/#organization"},"potentialAction":{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https://daily.dev/search?q={search_term_string}"},"query-input":"required name=search_term_string"}}]} {"@context":"https://schema.org","@type":"TechArticle","headline":"Absa writes off another R200-million in software","url":"https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu","mainEntityOfPage":{"@type":"WebPage","@id":"https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu"},"datePublished":"2026-08-18T06:17:40.764Z","dateModified":"2026-08-18T06:18:07.302Z","description":"Absa Group impaired a further R200-million in software assets in the six months to June 2026, almost three times the R74-million impaired in the same period...","image":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/5b23eadfcd638d9b10c793e1d7d33c5e?_a=AQAEuop","thumbnailUrl":"https://media.daily.dev/image/upload/f_auto,q_auto/v1/posts/5b23eadfcd638d9b10c793e1d7d33c5e?_a=AQAEuop","isAccessibleForFree":true,"articleSection":"TechCentral","inLanguage":"en","publisher":{"@type":"Organization","name":"daily.dev","url":"https://daily.dev","logo":{"@type":"ImageObject","url":"https://daily.dev/apple-touch-icon.png","width":180,"height":180}},"author":{"@type":"Organization","name":"TechCentral","logo":"https://media.daily.dev/image/upload/s--RsqLDZrL--/f_auto/v1717745297/logos/techcentral","url":"https://daily.dev/sources/techcentral"},"commentCount":0,"discussionUrl":"https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu","interactionStatistic":[{"@type":"InteractionCounter","interactionType":{"@type":"LikeAction"},"userInteractionCount":0},{"@type":"InteractionCounter","interactionType":{"@type":"CommentAction"},"userInteractionCount":0}],"keywords":"fintech","timeRequired":"PT4M"} {"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https://daily.dev"},{"@type":"ListItem","position":2,"name":"TechCentral","item":"https://daily.dev/sources/techcentral"},{"@type":"ListItem","position":3,"name":"Absa writes off another R200-million in software"}]} {"@context":"https://schema.org","@type":"FAQPage","@id":"https://daily.dev/posts/absa-writes-off-another-r200-million-in-software-gfoksecnu#faq","mainEntity":[{"@type":"Question","name":"Why did Absa write off software assets again after the R2.4 billion impairment earlier in the year?","acceptedAnswer":{"@type":"Answer","text":"Absa impaired a further R200 million in software assets in the six months to June 2026, following the R2.4 billion write-off disclosed in March. The bank said certain software assets had a value in use of zero, mainly from head office, driven by a group strategy rethink, regulatory changes, and faster technology obsolescence partly accelerated by AI. Track how banks like Absa are navigating AI-driven technology obsolescence on daily.dev."}},{"@type":"Question","name":"How much does Absa spend on IT compared to its total operating expenses?","acceptedAnswer":{"@type":"Answer","text":"Absa's total IT spend, including staff, amortisation and depreciation, rose 7% to R8.78 billion in the first half of the year, representing 28% of the group's R31.4 billion operating expense base. This is higher than the roughly 25% CITO Johnson Idesoh cited in May, with full-year FY2025 IT spend including staff costs at R16.7 billion. Compare enterprise IT spending patterns across banks and tech firms on daily.dev."}}]} ```