Absa Bank Kenya PLC has reported its 2025 results, showing a 10% increase in profit after tax, reaching KSh22.9 billion. This demonstrates good momentum in a year with mixed conditions for lenders. It also reported an increased dividend payout, 17% higher than last year at KSh2.05 per share, comprising an interim dividend of KSh0.20 and a final dividend of KSh1.85 per ordinary share.
Revenues for the year came in at KSh61.4 billion. There was a shift in the earnings composition, with net interest income declining 6% to KSh43.3 billion as a result of changing conditions in the interest-rate landscape. However, non-interest income grew 12% to KSh18.1 billion, mainly because of growth in payments and other transaction-based services.
Customer deposits grew 1% to KSh372.4 billion, while loans and advances stood at KSh312 billion, up 1% from last year. Total assets grew 6% to KSh537.6 billion.
Despite good revenue growth, the bank was able to cut operating expenses by 5% to KSh22.4 billion. Impairment charges, which are an estimate of expected credit losses, declined sharply by 32% to KSh6.2 billion.
During the results announcement session, Abdi Mohamed, MD and CEO of ABSA Bank Kenya, assured of continued support for customers as well as shareholders. The bank recorded a return on equity of 22.8%, and its cost-to-income ratio improved to 36.5%, driven by lower costs and technology adoption.
“Our purpose of Empowering Africa’s tomorrow, together, one story at a time, continued to inform our strategic direction, while disciplined execution drove material progress across priority areas. These outcomes therefore reaffirm our commitment to sustainable results while ensuring inclusive growth of our customers, stakeholders and communities we serve,” said Mr. Mohamed.
The bank recorded its results as follows:
- 94% of transactions are now via alternative channels.
- 71% of processes are digitized.
The bank also recorded growth in its retail banking as it expanded its agency network to 8,060 outlets and enhanced its wealth and personal banking offering. In its business banking, it advanced its proposal for La Riba and introduced its Business Credit Card, which targets small and medium-sized enterprises.
The bank also recorded growth in its corporate banking as it successfully raised a KSh16 billion medium-term note and a US$156 million solar securitization deal. The bank also recorded assets under custody of over KSh69 billion and recorded 15% of foreign exchange revenues from its global markets unit.
The bank recorded a capital adequacy ratio of 21.0%, and its liquidity reserve ratio was 45.6%, well above regulatory requirements.
With increased profits and dividend payment, Absa positions itself as one of the lenders that remained profitable in 2025 despite modest loan growth and interest income headwinds.
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