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Absa Bank Kenya Posts 9% Profit Growth to KShs 11.7B in H1 2025
Strong Financial Performance Despite Economic Challenges
Absa Bank Kenya PLC posted a 9% growth in profit after tax to KShs 11.7 billion for the half-year ended June 30, 2025, delivering a strong return on equity of 26.5%.
The results reflect disciplined execution, prudent risk management, and agility in navigating a challenging economic environment. This performance also reinforces the Bank’s commitment to creating sustainable shareholder value.
Despite a complex operating landscape, revenue remained steady at KShs 31.5 billion. This was a marginal 1.2% drop from last year due to lower interest rates, partly offset by improved cost of funds management.
Net interest income decreased by 2.9% to KShs 22.3 billion. However, non-interest income rose by 3.3% to KShs 9.1 billion, driven by growth in fees and commissions.
Customer deposits grew by 2.3% to KShs 361 billion, while customer assets fell by 3.6% to KShs 305 billion, reflecting macroeconomic pressures. Total assets, however, increased by 10.4% to KShs 532 billion, demonstrating a robust balance sheet.
“Our results highlight the resilience of our operations and the relevance of our growth strategy, centered on being the primary partner for our customers,” said Abdi Mohamed, Managing Director and CEO.
“We are unlocking value across both traditional and emerging revenue streams while positioning the business for long-term growth.”
Absa Bank Kenya Posts 9% Profit Growth to KShs 11.7B in H1 2025
Market Expansion, Sustainability, and Innovation
In the review period, Absa enhanced its customer value propositions, maintained market leadership in bancassurance, and expanded its asset management business to over KShs 30 billion in assets under management, the third largest in the market.
Its remittance market share increased through tailored forex solutions. Additionally, upgrades to digital channels, branches, ATMs, and agency networks strengthened its service delivery.
The Bank boosted entrepreneur and business support through global trade missions to Estonia and the USA, launched the Absa Business Credit Card, and expanded its Shariah-compliant La Riba offering.
In Corporate and Investment Banking, Absa led significant transactions, including advising on a KShs 2.5 billion rights issue and the dual listing of the Satrix MSCI World ETF. The launch of the Absa Custody Business further enhanced its capital markets presence.
Sustainability remained central, with KShs 20 billion allocated to sustainable finance. Absa was also recognized as a Top Employer for the fourth consecutive year.
Future-skills training programs prepared staff for evolving market demands. The Bank also invested in sports development through golf and athletics, supporting Kenyan athletes and contributing to the creative economy.
“Our strategy remains resilient and adaptable, enabling us to deliver strong results while continuing to invest in the capabilities, partnerships, and innovations that will define our future,” Mr. Mohamed added.
https://africabusinessnews.co.ke/absa-partners-with-girlcode-to-empower-young-women-in-tech/
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