Absa Kenya 2025 profit

Absa Bank Kenya, a leading Nairobi-based lender partly owned by Kenyan billionaire investor Baloobhai Patel, reported mixed financial results for the year ended Dec. 31, 2025, with net profit rising to Ksh22.9 billion ($177.62 million), amid improved credit quality and disciplined cost management despite lower interest rates.

Profit rises as credit costs decline
According to its audited results, Absa Kenya’s net profit increased 10% from Ksh20.9 billion ($162.2 million) in 2024 to Ksh22.91 billion ($177.98 million) in 2025. The growth pushed the bank’s return on equity (ROE) to 22.8%, underlining its ability to deliver consistent returns for shareholders despite a complex operating environment.

Total revenue rose 10% to Ksh61.4 billion ($477.09 million), up from Ksh62.32 billion ($483.95 million) the previous year. The increase was driven primarily by stronger non-interest income, which grew on the back of the bank’s expanding digital payments business, higher fees and commissions, and improved performance in asset management and bancassurance services. These gains helped offset pressure on interest income caused by lower lending rates and tighter margins in the banking sector.

Non-interest income offsets interest income decline
Net interest income declined 6% to Ksh43.29 million ($336.35 million), as lower interest rates reduced lending margins. Still, the bank managed to cushion the impact through stronger non-interest revenue streams. Customer deposits climbed to Ksh372.4 billion ($2.88 billion), reflecting strong customer engagement and stable funding.

Non-interest income grew 12% to Ksh18.1 billion ($140.36 million), supported by growth in the bank’s payments and digital businesses. The lender also reported strong momentum in asset management, with its money market fund ranking among the top three in Kenya, while its bancassurance unit maintained the country’s leading profitability position. The bank also benefited from a sharp improvement in credit quality. Loan impairment charges fell 32% to Ksh6.2 billion ($47.9 million), reflecting tighter credit-risk management and a healthier loan portfolio.

Expansion across business segments
During the year, Absa Kenya strengthened its presence across retail, SME, and corporate banking. In the retail segment, the bank launched its Absa Wealth offering and revamped its Prestige banking service while expanding its agency banking network to 8,060 outlets nationwide.

In SME and business banking, the lender expanded its Shariah-compliant offerings under the La Riba brand as it marked 20 years of Islamic banking operations. The corporate banking division executed several landmark deals, including a Ksh16 billion ($124.32 million) medium-term note issuance and advisory roles in major corporate acquisitions. The bank also structured a $156 million solar securitization deal, highlighting its growing presence in sustainable finance.

Patel’s stake and higher dividend payout
Absa Kenya, a subsidiary of Absa Group Limited, operates one of the country’s largest banking networks. Billionaire investor Baloobhai Patel holds 1.84% stake, which is 100 million shares in the lender. This stake is currently worth Ksh3.03 billion ($23.46 million), reinforcing his position among Kenya’s wealthiest investors.

However, Absa Kenya’s balance sheet remained resilient. Total assets expanded 6% to Ksh537.6 billion ($4.16 billion), up from Ksh506.48 billion ($3.92 billion) a year earlier, while retained earnings rose by 15.72% to Ksh86.7 billion ($671.31 million) from Ksh74.92 billion ($580.08 million)

The bank’s board approved a final dividend of Ksh1.85 ($0.014) per share. Combined with the interim dividend of Ksh0.2 ($0.002), the total payout for the year stands at Ksh2.05 ($0.016) per share, representing a 17% increase compared to the previous year. Despite modest revenue pressure, Absa Kenya’s improved credit quality, disciplined cost management, and digital expansion continue to support its long-term growth strategy as it strengthens its position in East Africa’s banking sector.