Absa Bank Kenya posted a 9 per cent increase in its profit after tax of Sh11.7 billion for the first half of 2025 ended June 30, 2025.
The positive earnings were supported by a return on equity of 26.5 per cent.
Customer base and balance sheet
During the period in review, Absa Bank Kenya’s customer deposits expanded by 2.3 per cent to Sh361 billion, as its total assets grew 10.4 per cent to Sh532 billion.
However, the bank’s loan books contracted by 3.6 per cent to Sh305 billion, a shift which it attributed to the prevailing challenging macroeconomic environment.
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Cost management and asset quality
In the first six months of 2025, the bank’s operating costs increased by 1 per cent to Sh11.4 billion, which saw its cost-to-income ratio go up to 36 per cent.
The loan impairment charges dropped by 38 per cent to Sh3.2 billion, which the financial institution says is indicative of a healthier asset quality and tighter credit risk controls.
Capital and liquidity
Absa maintained strong regulatory buffers, with the capital adequacy ratio closing at 20.5 per cent and liquidity at 45.5 per cent, well above the minimum requirements of 14.5 per cent and 20 per cent, respectively.
Business segments and initiatives
Absa Bank Kenya’s asset under management business expanded in that period to more than Sh30 billion, placing it among the top three players in the market.
In corporate and investment banking, the lender acted as lead adviser in a Sh2.5 billion rights issue, which oversaw the dual listing of the Satrix MSCI World ETF, and launched the Absa Custody Business to deepen capital markets infrastructure.
Sustainable finance remained a priority, with about Sh20 billion channelled into projects meeting environmental, social, and governance standards.
The bank also reported that 71 per cent of customer processes have now been digitised, with 94 per cent of transactions now conducted through alternative channels.
Management outlook
“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 Absa Bank Kenya Managing Director and CEO Abdi Mohamed.
He added: “We are unlocking value across both traditional and emerging revenue streams while positioning the business for long-term growth.”
Dividend
The Board of Directors approved an interim dividend of Sh0.20 per ordinary share for the 2025 financial year, payable on or about October 15, 2025, to shareholders on record as of September 19, 2025.
Revenue and income
Total revenue for the six months to June 30 stood at Sh31.5 billion, a 1.2 per cent decline compared to 2024.
The drop was linked to lower interest rates, despite better management of funding costs.
Net interest income fell 2.9 per cent to Sh22.3 billion, while non-interest income rose 3.3 per cent to Sh9.1 billion, supported mainly by fees and commissions.
