BUSINESS

Absa Bank Kenya Q1 Net Profit Drops 13% to Ksh5.3B

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Absa Bank Kenya MD and CEO Abdi Mohamed with Chief Finance Officer Yusuf Omari
Absa Bank Kenya MD and CEO Abdi Mohamed with Chief Finance Officer, Yusuf Omari.
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Absa Bank Kenya Plc has reported a drop in profit after tax of Ksh5.3 billion and delivered Return on Equity of 20.3% for the quarter ending 31st March, 2026. During the period, customer deposits increased 8% to KSh. 399.1 billion, while customer loans and advances closed at Ksh303.8 billion. Total assets grew by 10% to Ksh571.3 billion, underscoring the strength of the balance sheet.

“It has been a demanding period for our customers and the broader economy, but our focus has been on standing alongside those we serve,”  Absa Bank Kenya Managing Director and CEO, Abdi Mohamed, said. “While our performance reflects these pressures, our actions are guided by a long-term view, supporting our customers today while safeguarding the strength of our business for the future.”

During the period under review, Absa Bank Kenya recorded total revenue of Ksh14.7 billion, through disciplined cost-of-funds management, reflecting the impact of a lower interest rate environment. Against the backdrop of shifting market dynamics, net interest income closed at Ksh10.4 billion, while non-interest income closed at Ksh4.3 billion for the quarter ending 31st March 2026. Notably, Absa Bank Kenya continued to accelerate its revenue diversification agenda, with total income from subsidiaries growing by 25% year-on-year.

“This set of results illustrates the strength of our franchise and the deliberate execution of our strategy in a dynamic market. As we continue to transform, our focus is firmly on deepening customer relationships, accelerating innovation, and delivering sustainable value for our stakeholders,” said Mr. Mohamed.

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The bank’s strategy continues to deliver measurable commercial momentum while strengthening its competitive position across the franchise. In Private and Personal Banking, Absa scaled its high-net-worth wealth offering and continued to innovate with a leading platinum card proposition, contributing to its recognition as Best Retail Bank Kenya 2026.

In Business Banking, Absa accelerated its anchor ecosystem client acquisition, improving access to working capital for its MSME customers through the “WEZESHA” value-chain financing programme, digital merchant’s payment solution “Lipa na Absa”, business credit card solutions, among others. The Bank continued to invest in material enhancements in its propositions, including the strengthening of its Asset-Based Finance (ABF) proposition that was re-launched in April 2026.

In Corporate Banking, the Bank consolidated its leadership position, ranking first in East Africa for M&A by deal value and underscoring the strength of its sector coverage model and bespoke mandates. The Global Markets unit also continued to innovate, introducing new currency pairs, expanding non-funded income, and diversifying earnings.

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Written by
KALU MENGO

Kalu Mengo is a Senior Reporter With Business Today. Email: [email protected]

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