BUSINESS

Absa Bank Kenya Profit Up Despite Drop in Revenues

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Absa Bank Kenya CEO Abdi Mohamed
Absa Bank Kenya CEO, Mr Abdi Mohamed.
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Absa Bank Kenya PLC has reported a 4% growth in net profit to Ksh6.2 billion for the period ended 31st 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 Ksh15.8 billion, reflecting a 4% year-on-year decline, impacted by a marginal decline in funded income to Ksh11.3 billion and a 11% drop in non-funded income to Ksh 4.5 billion.

In the period, Absa Bank Kenya advanced Ksh308 billion in loans. Customer deposits rose by 5% to Ksh371 billion, with total assets growing by 5% to Ksh520 billion.

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

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“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, Absa Bank Kenya 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.

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 Ksh5.5 billion. Improved credit performance and effective risk controls led to a 39% decline in impairment charges, which stood at Ksh1.5 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,” Mr Mohamed said. “Our focus is firmly on delivering high-impact, customer-led initiatives while navigating a dynamic external environment.”

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Written by
BT Reporter -

editor [at] businesstoday.co.ke

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