Absa Bank Kenya has reported a 9 per cent jump in profit after tax to Ksh 11.7 billion for the half-year ended June 30, 2025, a performance that highlights its resilience in a difficult economic environment. The lender said the results reflect strong risk management, disciplined execution, and continued investment in areas that deliver long-term growth.
The performance saw the bank deliver a return on equity of 26.5 per cent, one of the strongest in the sector. Although revenue dipped slightly to Ksh 31.5 billion, down 1.2 per cent from last year, the bank pointed to lower interest rates as the key reason.
Net interest income fell to Ksh 22.3 billion, while non-interest income edged up to Ksh 9.1 billion, helped by higher earnings from fees and commissions. Customer deposits rose to Ksh 361 billion, a 2.3 per cent increase, while customer assets eased by 3.6 per cent to Ksh 305 billion. The bank’s total assets, however, expanded by more than 10 per cent to Ksh 532 billion, underscoring a strong balance sheet position.
“Our results highlight the resilience of our operations and the relevance of our growth strategy, centred on being the primary partner for our customers,” Absa Kenya Managing Director and CEO, Abdi Mohamed, said. “We are unlocking value across both traditional and emerging revenue streams while positioning the business for long-term growth.”
The bank strengthened its footprint in asset management, where funds under management surpassed Ksh 30 billion, making it the third-largest player in the market. It also sustained leadership in bancassurance and increased its share of the remittance market through forex solutions.
At the same time, Absa invested in customer experience by expanding digital platforms, branch services, and agency networks. Corporate and Investment Banking recorded notable milestones, including a lead advisory role in a Ksh 2.5 billion rights issue and facilitating the dual listing of the Satrix MSCI World ETF.
The launch of a custody business also reinforced its position in capital markets. Sustainability remained at the core of the lender’s agenda, with about Ksh 20 billion advanced in sustainable finance projects during the period.
The bank was also recognised as a Top Employer for the fourth consecutive year, while continuing to support sports and creative industries through golf, athletics, and cultural initiatives. Efficiency gains were another highlight. Absa said 94 per cent of customer transactions are now conducted through alternative channels, with 71 per cent of internal processes fully digitised. This shift has kept costs contained at Ksh 11.4 billion, which translates to an improved cost-to-income ratio of 36 per cent.
The bank also reported a 38 per cent drop in loan impairment charges to Ksh 3.2 billion, crediting its focus on prudent risk management. Its capital and liquidity positions remained well above regulatory thresholds, with a capital adequacy ratio of 20.5 per cent and liquidity at 45.5 per cent.
The board approved an interim dividend of Ksh 0.20 per ordinary share, to be paid in October to shareholders on record as of September 19, 2025. “Our strategy remains resilient and adaptable, enabling us to deliver strong results while continuing to invest in capabilities, partnerships, and innovations that will define our future,” Mohamed added.
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