Absa Bank Kenya Revenue Drops in First Half of 2025

Absa Bank Kenya PLC has reported a drop in revenue for the half-year ended June 30, 2025. The Bank said the revenue remained resilient at Ksh31.5 billion, a marginal 1.2% decline despite the current complex operating landscape.

Absa attributed this decline to interest rates, partly offset by improved cost of funds management.

Net interest income fell by 2.9% to Ksh22.3 billion, while non-interest income grew by 3.3% to Ksh9.1 billion, driven by diversified streams from fees and commissions.

Customer deposits increased by 2.3% to Ksh361 billion during this period, while customer assets declined by 3.6% to Ksh305 billion.

Total assets grew by 10.4% to Ksh532 billion, underscoring the Bank’s strength of the balance sheet.

Absa Bank posted a 9% growth in profit after tax to Ksh11.7 billion supporting a strong return on equity of 26.5%.

The Bank’s Managing Director and CEO Abdi Mohamed said the results underscore the Absa’s disciplined execution, prudent risk management, and agility in navigating a challenging economic environment, while reinforcing its commitment to sustainable shareholder value.

Our results highlight the resilience of our operations and the relevance of our growth strategy, centred on being the primary partner for our customers. We are unlocking value across both traditional and emerging revenue streams while positioning the business for long-term growth.

Mohamed said the Bank enhanced its customer value propositions, sustaining market leadership in bancassurance and growing its asset management business to over Ksh30 billion in assets under management -the third largest in the market in the period under review.

Absa’s remittance market share rose through personalised forex solutions, while upgrades in digital channels, as well as branch, ATMs, and agency networks, reinforced its commitment to service excellence.

We also strengthened support for entrepreneurs and businesses through global trade missions -including to Estonia and the USA- launch of the Absa Business Credit Card, and an expanded Shariah-compliant La Riba offering.

Also Read: List of 10 Largest Banks in Kenya by Market Share

Corporate and Investment Banking

Absa Bank executed landmark transactions, including being the lead advisor in a Ksh2.5 billion rights issue and the dual listing of the Satrix MSCI World ETF.

The launch of the Absa Custody Business further deepened its capital markets infrastructure.

Mohamed said embedding sustainability across the business remained a core focus, with about Ksh20 billion advanced in sustainable finance.

The Bank was also recognised as a Top Employer for the fourth consecutive year.

The CEO stated that Absa offers advanced future-skills training to prepare colleagues for evolving market needs.

It also continued investing in sports development through golf and athletics

This creates platforms for its Kenyan sportsmen and women to grow- while spurring growth in the wider 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.

Also Read: ABSA Bank Kenya Owners, Branches and Loans Offered

Absa Bank Efficiency Improvements

Mohamed said 71% of the Bank’s customer processes are currently digitised and automated, with 94% of customer transactions now serviced through alternative channels.

Absa is also modernising its branch banking experience to further enhance service delivery.

According to the CEO, these investments have yielded tangible results with costs maintained at Ksh11.4 billion, a 1% increase from the previous period.

Consequently, the Bank’s cost-to-income ratio has improved to 36%.

Capital, Liquidity & Dividend

Absa’s total capital adequacy ratio closed at 20.5% and liquidity reserve position at 45.5% against the regulatory limits of 14.5% and 20%, respectively.

The Board of Directors has approved an interim dividend of Ksh0.20 per ordinary share of the Company for the year 2025.

The dividend will be paid on or about Wednesday, October 15, 2025, to shareholders registered as at the close of business on Friday, September 19, 2025.

Follow our WhatsApp Channel and X Account for real-time news updates.