Absa Bank Kenya Delivers 4% Growth In Net Profit To Kshs 6.2 Billion In Q1

Absa Bank Kenya PLC has reported a 4% growth in net earnings to Kshs. 6.2 billion for the period ended 31 March 2025, an indication of strong operational resilience and customer confidence, amid a challenging macro-economic landscape.

As a result of prevailing market conditions, total revenues closed at Kshs. 15.8 billion, reflecting a 4% year-on-year decline, impacted by a marginal decline in funded income to Kshs. 11.3 billion and a 11% drop in non-funded income to Kshs. 4.5 billion.

In the review period, the Bank continued to empower its customers’ growth stories through the provision of essential financial support, advancing Kshs. 308 billion in loans and advances to key economic sectors and individuals. Customer deposits rose by 5% to Kshs. 371 billion, with total assets growing by 5% to Kshs 520 billion.

Speaking about the financial performance, Absa Bank Kenya Managing Director & CEO, Abdi Mohamed, highlighted that the results affirm the strength of the Bank’s strategic direction, and reinforce Absa’s commitment to delivering relevant, personalised financial and non-financial solutions that meet the evolving needs of individuals, businesses, and communities.

“While the operating environment remained complex, we continued to implement our forward-looking five-year strategic plan, which is guided by our core purpose: “Empowering Africa’s tomorrow, together…one story at a time. We are satisfied by the progress attained in the review period, even as we implement prudent measures to strengthen and sustain our balance sheet momentum in the near term,” said Mr. Mohamed.

During the quarter, the Bank deepened its role as a business enabler by facilitating its technology-focused business club members with international exposure to best practices through a trip to Estonia and Finland as well as to the United States. The members also gained first-hand access to international best practices in digital innovation and enterprise growth. In addition, the Bank enhanced its wealth management proposition as part of a broader strategy to strengthen its value offering to the consumer segment.

Furthermore, the Bank accelerated its thought leadership series for its corporate clients across the country focused on supporting them to navigate the dynamic operating landscape. Absa also sustained commitment to people and culture with its recognition as a Top Employer in Kenya and Africa for the fourth consecutive year by the Top Employers Institute.

The continued cost discipline, combined with strategic investments in customer-focused transformation, resulted in a 1% reduction in total costs to Kshs. 5.5 billion. Improved credit performance and effective risk controls led to a 39% decline in impairment charges, which stood at Kshs. 1.5 billion. As a result, the Bank maintained strong portfolio quality, supported by a solid coverage ratio to absorb potential future credit losses.

In the quarter under review, the Bank reinforced its long-standing support for sports by investing in key events such as the Magical Kenya Open and the Absa Sirikwa Classics, reaffirming its long-term commitment to the sector and its far-reaching economic benefits.

“Looking ahead, we remain strategically positioned for sustainable growth, anchored by a strong financial foundation and disciplined execution. Our focus is firmly on delivering high-impact, customer-led initiatives while navigating a dynamic external environment. We continue to advance our ambition to position Absa as a forward-looking, innovation-driven financial partner across consumer, SME, and corporate segments. At the same time, we are deepening our digital transformation agenda to enhance customer experience, while strengthening our employee value proposition as a key driver of long-term success,” added Mr. Mohamed.

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