Absa Bank has reported a 10 per cent increase in net profit to Sh22.9 billion for the year ended December 31, 2025, driven by strong non-interest income growth, improved asset quality and tighter cost management despite pressure on interest income.
The lender’s total revenue stood at Sh61.4 billion during the period, reflecting shifts in the interest rate environment that affected lending income but were partly offset by disciplined funding cost management and expansion in alternative revenue streams.
The improved profitability enabled the bank to raise its total dividend by 17 percent to KSh2.05 per share, comprising an interim dividend of KSh0.20 and a final dividend of KSh1.85.
Speaking during the results announcement, Absa Bank Kenya Managing Director and CEO Abdi Mohamed said the performance reflects the bank’s strategy of supporting economic activity while delivering sustainable shareholder returns.
“Our purpose of empowering Africa’s tomorrow continued to guide our strategy while disciplined execution delivered progress across our priority areas,” he said.
Absa’s operating expenses declined by 5 percent to KSh22.4 billion, supported by cost discipline and efficiency gains from digital transformation.
At the same time, loan impairment charges fell sharply by 32 percent to KSh6.2 billion, signalling improved credit quality and stronger risk management.
However, net interest income dropped by 6 percent, reflecting changes in the interest rate environment. The decline was cushioned by a 12 percent growth in non-interest income to KSh18.1 billion, largely supported by the bank’s payments business.
The bank continued to expand its balance sheet, with total assets rising by 6 percent to KSh537.6 billion.
Customer deposits increased to KSh372.4 billion, while customer loans and advances grew to KSh312.2 billion, indicating sustained engagement with retail and corporate clients.
The bank posted a return on equity of 22.8 percent, underlining strong capital deployment and profitability.
During the year, Absa expanded several customer offerings across its divisions.
In the Personal and Private Banking segment, the lender launched the Absa Wealth platform, enhanced its Prestige banking proposition and expanded its reach through an agency banking network of over 8,000 outlets.
The bank also recorded growth in digital channels, with 71 percent of customer processes now digitized and 94 percent of transactions conducted through alternative channels such as mobile and online banking.
Its asset management unit climbed into Kenya’s top three money market funds, while the bancassurance business maintained a leading position in profitability.
In Business Banking, the lender strengthened its Shariah-compliant La Riba Islamic banking proposition, marking 20 years of operations, while introducing new products such as a Business Credit Card aimed at small and medium-sized enterprises.
Meanwhile, Corporate and Investment Banking led several high-value transactions, including a KSh16 billion Medium Term Note programme and a US$156 million solar securitization, as it expanded its transactional banking and digital payments capabilities.
The bank also reported KSh69 billion in assets under custody, while its Global Markets unit captured a 15 percent share of foreign exchange revenues.
The lender maintained strong capital and liquidity buffers, with a total capital adequacy ratio of 21 percent and a liquidity reserve ratio of 45.6 percent, both well above regulatory requirements.
Mohamed said the bank will continue investing in technology, customer experience and brand development to sustain growth.
“Looking ahead, Absa is well positioned to maintain momentum, supported by a strong financial foundation and continued investment in people, technology and customer experience,” he said.
