Absa Bank Kenya has posted a 4 per cent growth in net profit to Sh6.17 billion in the first quarter of 2025, compared to Sh5.94 billion during the same period last year, despite a challenging macroeconomic environment.
The bank’s net interest income declined from Sh11.39 billion to Sh11.26 billion.
Total interest income reduced to Sh15.05 billion due to a reduction in loans and advances to customers, while total non-interest income fell to Sh4.51 billion, attributed to reduced fees and commissions on loans and advances. During the period, loans and advances to customers decreased to Sh308.38 billion from Sh326.84 billion last year.
Total assets grew marginally to Sh520.20 billion, with customer deposits increasing to Sh371.19 billion from Sh359.46 billion, supported by sustained trust from the bank’s client base.
Additionally, total operating expenses decreased to Sh6.99 billion from Sh7.98 billion, reflecting disciplined cost controls and efficiency gains. Digital banking services played a key role in reducing operational costs while enhancing customer convenience.
Mobile and online transactions have grown steadily, reinforcing Absa’s position as a leader in the digital banking space. This comes as the broader banking sector faces headwinds in 2025, with some lenders struggling with rising non-performing loans and squeezed interest margins.
However, Absa’s strong risk management framework and diversified revenue streams have enabled it to navigate these challenges more effectively than some of its peers, particularly through its focus on key sectors such as SMEs, agriculture, and trade finance.
While revenue pressures persist in this tough operating environment—marked by high inflation, currency volatility, and tighter banking regulations—the bank remains confident in its strategy to drive sustainable growth through digital transformation and targeted lending.
With a solid start to the year, Absa Bank Kenya remains cautiously optimistic about maintaining profitability. If macroeconomic conditions stabilise, it is well-positioned to capitalise on growth opportunities in the evolving financial sector, building on its reputation for resilience and innovation in challenging times.
