Absa Bank Kenya PLC has reported a 9% half-year profit growth to KShs 11.7 billion for the six months to June 30, 2025, supporting a difficult economic backdrop.
The performance, with a strong 26.5% return on equity, reflects the bank’s disciplined strategy, careful risk management, and commitment to delivering long-term value to shareholders.
Despite a shared complex operating environment, the revenue remained at Kshs 31.5 billion, a modest 1.2% decline from last year courtesy of softer interest rates, partially compensated by improved cost of funds management.
Net interest income fell 2.9% to Kshs 22.3 billion, while non-interest income rose 3.3% to Kshs 9.1 billion, underpinned by diversified incomes in fees and commissions.
During this period customer deposits increased by 2.3% to Kshs. 361 billion, and customer assets decreased by 3.6% to Kshs. 305 billion in a reflection of the macroeconomic headwinds that are being felt. Total assets increased by 10.4% to Kshs. 532 billion, which is a reflection of the strength of the balance sheet.
“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.
During the review period, the Bank strengthened its customer offerings, maintaining leadership in bancassurance and growing its asset management portfolio to over KShs 30 billion the third-largest in the market.
The bank also expanded its share of the remittance market through personalised forex solutions and continued upgrading its digital channels, branches, ATMs, and agency networks to enhance service delivery.
Support for entrepreneurs and businesses was boosted through global trade missions to Estonia and the USA, the launch of the Absa Business Credit Card, and an expanded Shariah-compliant La Riba offering.
In Corporate and Investment Banking, ABSA Bank executed landmark transactions, including leading advisor in a Kshs 2.5 billion rights issue and the dual listing of the Satrix MSCI World ETF. The launch of the Absa Custody Business further deepened its capital markets infrastructure.
Sustainability remained central to operations, with about KShs 20 billion channelled into sustainable finance.
Absa was also named a Top Employer for the fourth consecutive year, advanced future-skills training for its workforce, and invested in sports development particularly golf and athletics creating opportunities for Kenyan athletes while supporting growth in the creative economy.
”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,” added Mr. Mohamed.
Operational efficiency
The bank has continued building on investments in customer experience and efficiency, with 71% of processes now digitised and automated, and 94% of transactions handled through alternative channels. Branch banking is also being modernised to improve service delivery. Costs were maintained at KShs 11.4 billion, only 1% higher than the previous period, improving the cost-to-income ratio to 36%.
Risk management
Impairment losses fell by 38% to KShs 3.2 billion, as a result of prudent risk management in a challenging business environment. The bank maintains quality portfolios with adequate provisions to cover likely future losses.
Capital and liquidity
Capital and liquidity ratios remains strong, with a total capital adequacy ratio standing at 20.5% and a liquidity reserve position of 45.5%, both quite above regulatory requirements of 14.5% and 20%. This stability positions the bank for increased growth and investment.
Shareholder returns
The Board decided to declare an interim dividend of KShs 0.20 per ordinary share for 2025, payable on or about Wednesday, 15 October 2025, to the registered shareholders at Friday, 19 September 2025.
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