Absa Bank Kenya Records 9% Growth To Ksh 11.7 Billion In H1 Of 2025

Absa Bank Kenya PLC posted a 9% growth in profit after tax to KShs 11.7 billion for the half-year ended June 30, 2025, supporting a strong return on equity of 26.5%. The results underscore the Bank’s disciplined execution, prudent risk management, and agility in navigating a challenging economic environment, while reinforcing its commitment to sustainable shareholder value.

Despite a prevailing complex operating landscape, revenue remained resilient at Kshs 31.5 billion, a marginal 1.2% decline from last year due to lower interest rates, partly offset by improved cost of funds management. Net interest income fell by 2.9% to Kshs 22.3 billion, while non-interest income grew by 3.3% to Kshs 9.1 billion, driven by diversified streams from fees and commissions.

During this period, customer deposits increased by 2.3% to Kshs. 361 billion, while customer assets declined by 3.6% to Kshs. 305 billion, reflecting the prevailing macroeconomic headwinds. Total assets grew by 10.4% to Kshs. 532 billion, underscoring the strength of the balance sheet.

“Our results highlight the resilience of our operations and the relevance of our growth strategy, centred on being the primary partner for our customers,” said Abdi Mohamed, Managing Director and CEO. “We are unlocking value across both traditional and emerging revenue streams while positioning the business for long-term growth.

In the period under review, we enhanced our customer value propositions, sustaining market leadership in bancassurance and growing our asset management business to over Kshs 30 billion in assets under management -the third largest in the market. Our remittance market share rose through personalised forex solutions, while upgrades in digital channels, as well as branch, ATMs, and agency network, reinforced our commitment to service excellence. We also strengthened support for entrepreneurs and businesses through global trade missions -including to Estonia and the USA- the launch of the Absa Business Credit Card, and an expanded Shariah-compliant La Riba offering.

In Corporate and Investment Banking, the Bank executed landmark transactions, including being the lead advisor in a Kshs 2.5 billion rights issue and the dual listing of the Satrix MSCI World ETF. The launch of the Absa Custody Business further deepened its capital markets infrastructure.

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Embedding sustainability across the business remained a core focus, with about Kshs20 billion advanced in sustainable finance. The Bank was recognised as a Top Employer for the fourth consecutive year. We advanced future-skills training to prepare colleagues for evolving market needs. We also continued investing in sports development through golf and athletics -creating platforms for our Kenyan sportsmen and women to grow- while spurring growth in the wider creative economy.

Our strategy remains resilient and adaptable, enabling us to deliver strong results while continuing to invest in the capabilities, partnerships, and innovations that will define our future,” added Mr. Mohamed.

Other highlights include:

Efficiency

We continue to build on our transformational investments in customer experience and operational efficiency. Currently, 71% of our customer processes are digitised and automated, with 94% of customer transactions now serviced through alternative channels. Additionally, we are modernising our branch banking experience to further enhance service delivery.

These strategic investments have yielded tangible results with costs maintained at Kshs. 11.4 billion, a 1% increase from the previous period. Consequently, our cost-to-income ratio has improved to 36%.

Impairment

Impairment improved by 38% to Kshs. 3.2 billion compared to the same period last year, reflecting the Bank’s commitment to prudent risk management principles amidst a strong balance sheet and a challenging operating environment. The Bank continues to maintain a healthy portfolio quality and has established a sufficient coverage ratio to effectively minimize and manage potential future credit losses.

Capital and liquidity

The Bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement. The Bank’s total capital adequacy ratio closed at 20.5% and liquidity reserve position at 45.5% against the regulatory limits of 14.5% and 20%, respectively. The strong position of capital will support the Bank’s growth and investment agenda.

Delivering shareholder value

The Board of Directors has approved an interim dividend of Kshs. 0.20 per ordinary share of the Company for the year 2025, to be paid on or about Wednesday, 15 October 2025, to shareholders registered as at the close of business on Friday, 19 September 2025.

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