Absa Bank Kenya PLC has reported a 10 per cent growth in profit after tax, reaching Sh22.9 billion for the year ended 31 December 2025, driven by resilient revenue streams, disciplined cost management, and improved asset quality.
The lender’s total revenue for the period stood at Sh61.4 billion, reflecting the impact of changes in the interest rate environment. While net interest income declined by 6 per cent to Sh43.3 billion, non-interest income grew strongly by 12 per cent to Sh18.1 billion, largely supported by expansion in the payments business and digital channels.
Speaking during the release of the annual financial results in Nairobi, Managing Director and Chief Executive Officer Abdi Mohamed said the performance demonstrated the bank’s resilience and commitment to sustainable growth.
“Our purpose of ‘Empowering Africa’s tomorrow, together, one story at a time’ continued to guide our strategic direction, while disciplined execution drove material progress across priority areas. These outcomes reaffirm our commitment to sustainable results while ensuring inclusive growth for our customers, stakeholders, and the communities we serve,” said Mr Mohamed.
The improved profitability enabled the bank to raise its total dividend by 17 per cent to Sh2.05 per share, comprising an interim dividend of Sh0.20 and a final dividend of Sh1.85 per share. The higher payout signals management’s confidence in the bank’s capital position and future earnings prospects.
During the period under review, operating expenses declined by 5 per cent to Sh22.4 billion, reflecting gains from digitisation, automation, and tight cost controls. The bank reported that 71 per cent of customer processes are now digitised, while 94 per cent of transactions are conducted through alternative channels, easing pressure on branch operations and improving efficiency.
Impairment charges fell sharply by 32 per cent to Sh6.2 billion, pointing to improved credit quality and prudent risk management. The bank maintained strong capital and liquidity buffers, with a total capital adequacy ratio of 21.0 per cent and a liquidity reserve ratio of 45.6 per cent, both well above regulatory requirements.
Customer deposits grew marginally by 1 per cent to Sh372.4 billion, while loans and advances rose by 1 per cent to Sh312 billion. Total assets expanded by 6 per cent to Sh537.6 billion, underscoring balance sheet strength despite a challenging operating environment.
Across its business segments, the bank reported solid performance. In Personal and Private Banking, it launched Absa Wealth and enhanced its prestige offering while expanding its agency network to over 8,000 outlets. The asset management unit ranked among the top three money market funds in Kenya, and Bancassurance maintained strong profitability.
In Business Banking, the lender marked 20 years of Islamic banking under its La Riba proposition and introduced a Business Credit Card to support SMEs. Corporate and Investment Banking executed notable transactions, including a Sh16 billion Medium Term Note and a US$156 million solar securitisation, while growing its foreign exchange market share to 15 per cent.
Mr Mohamed said the bank remains focused on strengthening its brand, deepening customer relationships, and investing in technology to enhance service delivery.
“Looking ahead, Absa is positioned to sustain momentum, underpinned by a strong financial foundation and disciplined execution. We will continue to strengthen our brand, invest in technology that enhances customer experience, and build the leadership and culture needed to deliver consistently in a changing environment, as we create long-term value for our customers, stakeholders, and communities,” he said.
– By Mark Simitia
