Absa Bank Kenya PLC has reported a 10 per cent growth in profit after tax to KShs 22.9 billion for the financial year ended 31 December 2025, supported by resilient revenue performance, prudent risk management and strong operational efficiency.
Total revenues for the year stood at KShs 61.4 billion in a dynamic operating environment marked by shifts in the interest rate cycle. The Bank said revenue performance reflected changes in the interest rate environment, which were offset through disciplined cost-of-funds management, underscoring its resilience and execution strength.
Dividend Up 17% on Stronger Profitability
Driven by improved earnings, the lender declared a 17 per cent increase in total dividend to KShs 2.05 per share. The payout comprises an interim dividend of KShs 0.20 and a final dividend of KShs 1.85 per ordinary share.
Absa Bank Kenya Managing Director and Chief Executive Officer, Abdi Mohamed, said the results demonstrate the Bank’s role in supporting economic activity across individuals, enterprises and communities, while delivering sustainable returns to shareholders.
“Our purpose of empowering Africa’s tomorrow, together, one story at a time, continued to inform our strategic direction, while disciplined execution drove material progress across priority areas,” said Mohamed.
Costs Fall, Impairments Drop 32%
The Bank reported a 5 per cent reduction in operating expenses to KShs 22.4 billion, attributed to continued investment in customer-focused transformation and disciplined cost management.
Impairment charges declined by 32 per cent to KShs 6.2 billion, reflecting prudent credit-risk management and improved portfolio quality with adequate coverage ratios.
While net interest income declined by 6 per cent, non-interest income grew by 12 per cent to KShs 18.1 billion, supported largely by growth in the payments business.
Balance Sheet Strengthens as Assets Grow
Total assets increased by 6 per cent to KShs 537.6 billion, highlighting the resilience of the Bank’s balance sheet. Customer deposits rose to KShs 372.4 billion, while customer assets stood at KShs 312.2 billion, reflecting deeper customer engagement and strengthened relationships.
Return on equity came in at 22.8 per cent, underlining resilient profitability and effective capital deployment.
Capital and liquidity positions remained well above regulatory thresholds, with a total capital adequacy ratio of 21.0 per cent and a liquidity reserve ratio of 45.6 per cent.
Business Segments Deliver Broad-Based Growth
In Personal and Private Banking, the Bank launched Absa Wealth and enhanced its Prestige proposition, while expanding reach through an agency network of 8,060 outlets.
The asset management business ranked among the top three money market funds in Kenya, while Bancassurance maintained a market-leading position in profitability.
In Business Banking, Absa expanded its Shariah-compliant La Riba offering, marking 20 years of Islamic banking leadership, and advanced SME growth through partnerships and the introduction of the Business Credit Card.
Corporate and Investment Banking executed high-impact transactions, including a KShs 16 billion Medium Term Note and a US$156 million solar securitisation. Assets under custody exceeded KShs 69 billion, while the Global Markets business achieved a 15 per cent market share in foreign exchange revenues. Performance was further supported by the dual listing of the Satrix MSCI World ETF on the Nairobi Securities Exchange.
Digital Push Drives Efficiency Gains
Technology investment remained central to the Bank’s performance, with 71 per cent of customer processes digitised and 94 per cent of transactions conducted through alternative channels.
These efficiencies contributed to a 5 per cent reduction in total costs and an improved cost-to-income ratio of 36.5 per cent, reflecting a disciplined approach to scale, productivity and service excellence.
Looking ahead, Mohamed said the Bank is well-positioned to sustain momentum, anchored on a strong financial foundation and continued investment in technology, leadership and brand strength to deliver long-term value to customers and stakeholders.