Absa Bank has reported a slight 1% decrease in total revenue in H1 2025 compared to the same period last year, when it stood at Sh31.8 billion. This modest decrease was primarily due to a 2.9% contraction in net interest income, resulting from tighter interest rate margins across the industry.
However, Absa Bank successfully offset this pressure through a 3.3% growth in non-interest income, particularly from its payments business, showcasing the benefits of its diversified revenue streams. Operating expenses saw a marginal 1% increase to Sh11.4 billion as the bank continued making strategic investments in technology and talent development to drive future growth.
The bank also witnessed a 9% year-on-year growth in profit after tax to Sh11.7 billion in the period. This strong profitability was achieved despite a challenging operating environment, demonstrating the bank’s ability to maintain robust earnings.
Another notable highlight of the financial results was the significant 38% reduction in impairment charges to Sh3.2 billion, reflecting the bank’s prudent risk management practices and effective collection strategies. This improvement contributed to the overall strength of the financial performance, with the cost-to-income ratio remaining manageable at 36.4% despite ongoing investments in the business.
Total assets grew by 10.4% to Sh532 billion, while customer deposits increased by 2.3% to Sh361 billion. The loan-to-deposit ratio improved to 84%, indicating better deposit mobilization and liquidity management. The results were also supported by a return on equity of 26.5%, comfortably above the bank’s cost of equity, reflecting efficient capital allocation and sound financial management.
During the period, Absa continued to enhance its customer offerings and service delivery. The bank expanded its Shariah-compliant banking solutions under the La Riba brand and upgraded its branch network to improve customer experiences.
In its corporate and investment banking division, Absa demonstrated market leadership by successfully advising on the dual listing of the Satrix MSCI World ETF on the Nairobi Securities Exchange, providing local investors with access to global markets.
In recognition of its strong performance and commitment to shareholder returns, the Board has declared an interim dividend of Sh0.20 per ordinary share, payable in October 2025.
Looking ahead, the bank remains well-positioned to sustain its growth momentum, supported by a strong financial foundation and clear strategic priorities. It will continue focusing on digital transformation, talent development, and customer experience enhancements to drive long-term value creation.
