Absa Bank Kenya PLC Delivers KSh 22.9 Billion Profit as Efficiency Gains and Strong Risk Management Drive 2025 Performance

Absa Bank Kenya PLC has reported a 10% growth in profit after tax to Kshs. 22.9 billion for the financial year ended 31 December 2025, supported by resilient growth, prudent risk management and strong operational efficiency.

In a dynamic operating environment, total revenues closed the period at KShs.61.4 billion. Revenue performance reflected changes in the interest rate environment, which were offset through disciplined cost-of-funds management, underscoring the Bank’s resilience and execution strength.

Driven by stronger profitability, the Bank has declared a 17% increase in total dividend to Kshs.2.05 per share. This distribution comprises an interim dividend of Kshs.0.20 and a final dividend of Kshs.1.85 per ordinary share.

Speaking at the release of the financial results, Absa Bank Kenya Managing Director & CEO, Abdi Mohamed, said the results underscore Absa’s role in supporting economic activity across individuals, enterprises, and communities, while maintaining a clear focus on sustainable returns for shareholders.

“Our purpose of Empowering Africa’s tomorrow, together, one story at a time, continued to inform our strategic direction, while disciplined execution drove material progress across priority areas. These outcomes therefore reaffirm our commitment to sustainable results while ensuring inclusive growth of our customers, stakeholders and communities we serve,” said Mr. Mohamed.

In the period under review, the Bank’s continued investment in customer-focused transformation and disciplined cost management delivered a 5% reduction in operating expenses to Kshs.22.4 billion. Impairment charges improved significantly by 32% to Kshs.6.2 billion, reflecting prudent credit-risk management and a healthier portfolio with adequate coverage ratios.

For the period, net interest income declined by 6%, while non-interest income grew by 12% to Kshs.18.1 billion, supported by Absa’s payments business. In the year, total assets grew by 6% to Kshs.537.6 billion, underscoring the resilience of the Bank’s balance sheet. Customer deposits increased to Kshs.372.4 billion, while customer assets increased to Kshs.312.2 billion, reflecting strong customer engagements and depth of relationships.

During the year under review, Absa Bank Kenya strengthened its customer value propositions and delivered broad-based performance across its businesses. In Personal and Private Banking, the launch of Absa Wealth, enhancements to the Prestige proposition, and continued investment in Personal Banking expanded customer reach through an agency network of 8,060 outlets.

Performance was supported by growth in digital and non-funded income streams. The asset management business expanded into the top three money market funds in Kenya, while Bancassurance maintained a market-leading position in profitability.

In Business Banking, Absa expanded its Shariah-compliant La Riba offering, marking 20 years of Islamic banking leadership, and advanced SME growth through partnerships, anchor-led ecosystems, and the introduction of the Business Credit Card.

Corporate and Investment Banking delivered high-impact execution, leading to Kshs. 16 billion Medium Term Note and a US$156 million solar securitisation, while strengthening transactional banking and digital payments. Assets under custody exceeded KShs. 69 billion, and the Global Markets business achieved a 15% market share in foreign exchange revenues, supported by diversified income streams and the dual listing of the Satrix MSCI World ETF on the Nairobi Securities Exchange.

Absa Bank Kenya’s performance continues to be underpinned by a focus on sustainable value creation, supported by disciplined execution and strong enabling capabilities. The Bank delivered a return on equity of 22.8%, reflecting resilient profitability and effective capital deployment.

Investment in technology and operational efficiency remains a key enabler of this performance. Absa has continued to digitise and automate its customer journeys, with 71% of customer processes digitised and 94% of transactions conducted through alternative channels. Alongside the modernisation of the branch banking experience, these investments have delivered measurable efficiency gains, contributing to a 5% reduction in total costs and an improved cost-to-income ratio of 36.5%, reflecting a disciplined approach to scale, productivity, and service excellence.

The Bank’s sustainability agenda is further anchored in prudent risk management and balance sheet strength, enabling resilience in a dynamic operating environment. Impairment declined by 32% to KShs. 6.2 billion, supported by healthy portfolio quality and robust coverage levels. Capital and liquidity positions remained well above regulatory thresholds, with a total capital adequacy ratio of 21.0% and a liquidity reserve ratio of 45.6%, providing the flexibility to support responsible growth and continued investment in people, technology, and the Absa brand.

“Looking ahead, Absa is positioned to sustain momentum, underpinned by a strong financial foundation and disciplined execution. We will continue to strengthen our brand, invest in technology that enhances customer experience, and build the leadership and culture needed to deliver consistently in a changing environment, as we create long-term value for our customers, stakeholders, and communities,” said Mr. Mohamed.

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