Absa Bank Kenya profit rises 10pc to KSh 22.9 billion

Absa Bank Kenya posted a 10 percent rise in full year 2025 profit to KSh 22.9 billion, supported by a sharp drop in bad loan charges and disciplined cost management, even as lower interest rates weighed on lending income.

The lender declared a final dividend of KSh 1.85 per share, which will be paid on May 19 to shareholders on the register as of April 30. The final dividend adds to an interim dividend of KSh 0.20 per share paid earlier in the year, bringing the full year payout to KSh 2.05 per share, a 17 percent increase from the KSh 1.75 paid in 2024.

Total operating income slipped 2 percent to KSh 61.4 billion as the Central Bank of Kenya’s rate cutting cycle compressed lending margins, pulling net interest income down 6 percent to KSh 43.3 billion. The bank offset this through its fees and transactions business, with non-interest income growing 12 percent to KSh 18.1 billion. Foreign exchange trading was a standout, with Absa capturing around 15 percent of market FX revenues.

Impairment charges fell 32 percent from KSh 9.1 billion to KSh 6.2 billion. Gross non-performing loans declined from KSh 42.5 billion to KSh 38.9 billion over the year. Operating expenses fell 5 percent to KSh 22.4 billion even as the bank expanded its agency banking network to 8,060 outlets.

The balance sheet grew 6 percent to KSh 537 billion. Customer deposits increased 1 percent to KSh 372 billion from KSh 367 billion, while the loan book grew 1 percent to KSh 312 billion from KSh 309 billion.