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Absa Bank Kenya Posts 10% Earnings Growth to KSh 22.9 Billion, Raises Dividend by 17%
Profit Growth and Shareholder Returns
Absa Bank Kenya PLC reported a 10% rise in profit after tax to KSh 22.9 billion for the year ended 31 December 2025.
The bank credited resilient revenue growth, disciplined risk management, and strong operational efficiency for the performance.
Total revenue reached KSh 61.4 billion despite a shifting interest rate environment. Although net interest income declined by 6%, disciplined cost-of-funds management cushioned the impact.
Stronger profitability enabled the board to raise the total dividend by 17% to KSh 2.05 per share.
The payout includes an interim dividend of KSh 0.20 and a final dividend of KSh 1.85 per ordinary share.
Managing Director and CEO Abdi Mohamed said the results reflect the bank’s commitment to sustainable returns while supporting economic growth.
“Our purpose of empowering Africa’s tomorrow continues to guide our strategy,” he said. “Disciplined execution delivered measurable progress across our priority areas.”
Efficiency Gains and Balance Sheet Strength
During the year, Absa reduced operating expenses by 5% to KSh 22.4 billion through tight cost control and customer-focused transformation.
At the same time, impairment charges fell by 32% to KSh 6.2 billion. The improvement reflected stronger credit-risk management and a healthier loan book.
Meanwhile, non-interest income grew by 12% to KSh 18.1 billion, supported largely by payments growth.
Total assets increased by 6% to KSh 537.6 billion, signalling balance sheet resilience. Customer deposits rose to KSh 372.4 billion, while customer assets climbed to KSh 312.2 billion.
The bank delivered a return on equity of 22.8%, underscoring effective capital deployment.
In addition, Absa maintained strong capital and liquidity buffers. The total capital adequacy ratio stood at 21.0%, while the liquidity reserve ratio reached 45.6%, both above regulatory requirements.
Absa Bank Kenya Posts 10% Earnings Growth to KSh 22.9 Billion, Raises Dividend by 17%
Business Segment Performance
Absa strengthened its value propositions across all segments.
In Personal and Private Banking, the bank launched Absa Wealth and enhanced its Prestige offering. It also expanded its agency network to 8,060 outlets, thereby widening customer reach.
The asset management business ranked among the top three money market funds in Kenya. Meanwhile, Bancassurance maintained market-leading profitability.
In Business Banking, Absa expanded its Shariah-compliant La Riba proposition, marking 20 years of Islamic banking leadership.
The bank also introduced a Business Credit Card and deepened SME partnerships.
Corporate and Investment Banking delivered landmark transactions, including a KSh 16 billion Medium Term Note and a US$156 million solar securitisation. Assets under custody surpassed KSh 69 billion.
The Global Markets business captured a 15% share of foreign exchange revenues. Growth in diversified income streams and the dual listing of the Nairobi Securities Exchange-listed Satrix MSCI World ETF supported this performance.
Digital Transformation and Sustainability Focus
Technology investment remained central to Absa’s strategy. The bank digitised 71% of customer processes, while customers completed 94% of transactions through alternative channels.
These initiatives improved efficiency and lowered costs. Consequently, the cost-to-income ratio improved to 36.5%.
Absa anchored its sustainability agenda on prudent risk management and balance sheet strength.
Strong capital levels now give the bank flexibility to support growth and invest further in technology and brand development.
Looking ahead, Mohamed expressed confidence in sustained momentum.
“We will continue to strengthen our brand, invest in customer-centric technology, and build the leadership needed to deliver long-term value,” he said.
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