South African state-owned bank sees profit soar to R7.8bn

Johannesburg – The Development Bank of Southern Africa (DBSA) has recorded a sharp increase in profitability, with net profit surging 47% to a record R7.8 billion for the financial year ended 31 March 2026, as the state-owned development financier expands its infrastructure investment across South Africa and the rest of the continent.

The latest result compares with a net profit of R5.3 billion recorded in the previous financial year, while sustainable earnings increased by 44.6% to R7.4 billion.

The DBSA said the strong financial performance provided a stronger platform for increasing its development impact.

The bank has set an ambitious target of mobilising up to R1 trillion in infrastructure investment over the next decade, building on R91.3 billion in total infrastructure development support delivered during the 2025 financial year.

The DBSA said its strategy was centred on using its balance sheet and partnerships to unlock greater investment in infrastructure projects across Africa.

Another strong performance

“Improving the quality of life of people in Africa is the fundamental focus of our development impact,” the bank said, adding that it aims to “bend the arc of history towards shared” development outcomes.

The latest profit growth follows another strong performance in the previous financial year, when the DBSA reported a 14.4% increase in net profit to R5.3 billion from R4.6 billion. Net interest income rose 8.6% to R8.4 billion during that period, while operating income increased 12.3% to R8.8 billion.

The bank’s infrastructure contribution includes financing and supporting projects in sectors such as energy, water and sanitation, transport, ICT, education and healthcare.

In the 2025 financial year, the DBSA said its R91.3 billion infrastructure contribution comprised R22.9 billion in funds catalysed, R17.5 billion in total disbursements and R5.2 billion in infrastructure implementation support. It also helped unlock R2.6 billion in infrastructure for under-resourced municipalities.

Developmental challenges

The bank said projects valued at R39.9 billion had been enabled and supported through its interventions, while approved projects worth a further R2.4 billion had been prepared.

The DBSA’s development work also supported job creation and small businesses. During the period, 956 local SMMEs and subcontractors were employed on construction projects, while infrastructure worth R4 billion was delivered by black-owned entities, including R2.6 billion by black women-owned entities.

The bank said its growth strategy remained focused on “catalyzing development, fostering partnerships, and mobilizing resources to address developmental challenges and unlocking the full potential of the African continent.”

The strong profitability comes as the DBSA seeks to expand its role as a major infrastructure financier at a time when African countries face significant funding gaps for energy, transport, water, sanitation and other critical infrastructure.

The bank said its balance sheet remained resilient and that its future success would depend on increasing development impact through its own resources while partnering with other public and private-sector financiers.

“The Bank has a healthy pipeline of projects that forms a solid foundation for future sustainability,” the DBSA said. “The Bank will continue to focus on disbursing for infrastructure projects within its mandate, that stimulates economic development.”