Absa Bank Kenya PLC has announced that it has reported a a 10% increase in profit after tax to Ksh. 22.9 billion for the 2025 financial year. This is an improvement from the Ksh. 20.9 billion the company reported in a similar period in 2024.
The performance was driven by aggressive cost management and a surge in non-interest income. The Bank’s Board has declared a 17% increase in total dividends, bringing the payout to Ksh 2.05 per share.
The lender’s balance sheet remained robust despite a high-interest-rate environment that pressured traditional lending margins.
| Metric | FY 2025 Performance | Year-on-Year Change |
| Profit After Tax | Ksh 22.9 Billion | +10% |
| Total Revenue | Ksh 61.4 Billion | Stable |
| Non-Interest Income | Ksh 18.1 Billion | +12% |
| Operating Expenses | Ksh 22.4 Billion | -5% (Improvement) |
| Total Assets | Ksh 537.6 Billion | +6% |
| Total Dividend | Ksh 2.05 Per Share | +17% |
While net interest income saw a slight dip of 6% (closing at Ksh. 43.3 billion), Absa successfully offset this through a 12% growth in non-interest income. This was largely driven by the Bank’s payments business, foreign exchange revenues and its asset management division, which now ranks among the top three money market funds in Kenya.
Managing Director and CEO Abdi Mohamed attributed the success to disciplined execution and a sharp focus on digital transformation.
“These outcomes reaffirm our commitment to sustainable results while ensuring inclusive growth of our customers, stakeholders, and the communities we serve,” said Mr. Mohamed.
The Bank’s push for efficiency was evident in its “digital-first” approach:
- 71% of customer processes are now fully digitized.
- 94% of all transactions are conducted via alternative (non-branch) channels.
- Operating expenses dropped by 5%, resulting in an impressive cost-to-income ratio of 36.5%.
One of the most striking figures in the 2025 report was the 32% reduction in impairment charges, which fell to Ksh. 6.2 billion. This reflects a significantly healthier loan portfolio and more stringent credit-risk management.
Customer deposits grew to Ksh. 372.4 billion, while the loan book remained steady at Ksh 312.2 billion, signaling a cautious but steady approach to credit expansion in a volatile market.
Absa’s growth was broad-based, spanning several specialized units:
- Personal Banking: Expanded its reach through a network of over 8,000 agency outlets and the launch of Absa Wealth.
- Business Banking: Celebrated 20 years of Islamic banking leadership by expanding the Shariah-compliant La Riba offering.
- Corporate & Investment Banking: Led high-impact deals, including a $156 million solar securitization and the listing of the Satrix MSCI World ETF on the Nairobi Securities Exchange.
With a Return on Equity (ROE) of 22.8% and capital adequacy ratios well above regulatory requirements, Absa Bank Kenya enters 2026 from a position of strength.