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Absa Bank Kenya PLC has reported a 9% rise in profit after tax to KShs 11.7 billion for the half-year ending June 30, 2025, driven by strategic execution, prudent risk management, and a strong focus on long-term shareholder value. The lender also posted a robust return on equity of 26.5%, signaling resilience in a challenging economic climate.
Steady Performance Amid Economic Challenges
Despite a complex macroeconomic environment, the bank’s total revenue stood at KShs 31.5 billion, marking a slight 1.2% decline from the same period last year. This was largely attributed to lower interest rates, which were partly offset by effective cost-of-funds management.
Net interest income dipped 2.9% to KShs 22.3 billion, while non-interest income rose 3.3% to KShs 9.1 billion, buoyed by diversified income streams, including fees and commissions. Customer deposits increased by 2.3% to KShs 361 billion, while customer assets fell by 3.6% to KShs 305 billion. Total assets grew by 10.4% to KShs 532 billion, reflecting a solid 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,” 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.”
Expanding Market Reach and Innovation
In the first half of 2025, Absa Bank strengthened its customer value proposition by maintaining market leadership in bancassurance and growing its asset management business to over KShs 30 billion in assets under management, making it the third largest in the market.
The bank also improved its remittance market share through personalised forex solutions and enhanced customer experiences by upgrading digital channels, branches, ATMs, and agency networks.
Entrepreneurship support was bolstered through global trade missions to Estonia and the USA, the launch of the Absa Business Credit Card, and the expansion of Shariah-compliant La Riba banking solutions.
Major Corporate Banking Milestones
In Corporate and Investment Banking, Absa played a key advisory role in landmark transactions, including a KShs 2.5 billion rights issue and the dual listing of the Satrix MSCI World ETF. The bank also launched its Custody Business, expanding its footprint in capital markets infrastructure.
Sustainability remained a priority, with KShs 20 billion advanced in sustainable finance. Absa was also recognised as a Top Employer for the fourth consecutive year, expanded future-skills training for staff, and invested in sports development to nurture Kenyan talent in golf, athletics, and the creative economy.
Efficiency Gains and Cost Management
Operational efficiency continued to improve, with 71% of customer processes now digitised and automated, and 94% of transactions conducted via alternative channels. Branch banking services have also been modernised to enhance the in-person banking experience.
Costs were well-contained at KShs 11.4 billion, representing just a 1% increase, which helped improve the cost-to-income ratio to 36%.
Strong Risk Management and Capital Position
Impairment charges dropped by 38% to KShs 3.2 billion compared to last year, reflecting strong risk management practices. The bank maintained a healthy loan portfolio and sufficient coverage against potential future credit losses.
Capital and liquidity remained well above regulatory requirements, with a total capital adequacy ratio of 20.5% and liquidity reserves at 45.5%, providing ample room for future growth and investment.
Shareholder Returns and Outlook
The Board of Directors has declared an interim dividend of KShs 0.20 per share for 2025, payable on October 15, 2025, to shareholders on record as of September 19, 2025.
Looking ahead, Mr. Mohamed expressed optimism, saying, “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.”
As Absa Bank Kenya navigates a changing economic landscape, its combination of strategic investment, operational efficiency, and sustainable growth initiatives positions it well for continued success in the coming years.
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