Absa Bank Kenya posts $40.9 million profit amid deposit growth

Absa Bank Kenya, a leading Nairobi-based lender partly owned by Kenyan investor Baloobhai Patel, reported a profit after tax of Ksh5.3 billion ($40.94 million) for the first quarter of 2026, supported by steady growth in customer deposits and an expanded balance sheet despite a challenging macroeconomic environment.

Profitability holds amid economic pressure

Profit before taxation came in at Ksh7.5 billion ($57.93 million), while return on equity stood at 20.3%, underscoring the bank’s resilience and capital strength. The lender maintained a capital adequacy ratio of 21%, comfortably above regulatory requirements, with liquidity reserves at 53.2%.

Chief Executive Officer Abdi Mohamed said the bank remained focused on supporting customers through a difficult economic cycle.

“It has been a demanding period for our customers and the broader economy, but our focus has been on standing alongside those we serve,” he said, adding that the bank is balancing near-term support with long-term stability.

Revenue growth and diversification

Total revenue for the quarter reached Ksh14.7 billion ($113.55 million), with net interest income contributing Ksh10.4 billion ($80.33 million) and non-interest income accounting for Ksh4.3 billion ($33.21 million). The performance was partly driven by disciplined cost management and diversification, with income from subsidiaries rising 25% year-on-year.

The results come as banks navigate easing interest rates, mounting pressure on asset quality, and slower activity across key sectors of the economy.

Expanding retail, SME and corporate banking

During the quarter, Absa continued to scale its operations across retail, business, and corporate banking segments. In retail banking, the lender expanded its wealth management offerings targeting high-net-worth clients. The lender’s total assets rose 10% to Ksh571.3 billion ($4.41 billion) during the three months, while customer deposits increased 8% to  Ksh399.1 billion ($3.08 billion), reflecting continued confidence among clients. Loans and advances stood at Ksh303.8 billion ($2.35 billion), highlighting a cautious lending approach amid subdued private sector credit demand and a lower interest rate environment.

Within the SME segment, the bank strengthened its “WEZESHA” value-chain financing program and digital payment solutions to improve access to working capital. Corporate banking also recorded growth, particularly in mergers and acquisitions advisory and foreign exchange services.

Sustainability and digital investment push

Absa Kenya, a subsidiary of South Africa’s Absa Group, operates 86 branches across the country. Billionaire investor Baloobhai Patel holds a 1.2% stake equivalent to 65.03 million shares in the lender, reinforcing his position among Kenya’s wealthiest investors.

Beyond core operations, Absa increased its focus on sustainability and community development through the Absa Kenya Foundation, supporting women- and youth-led enterprises within the circular economy.

The lender said it will continue investing in digital platforms, customer experience, and strategic partnerships as competition intensifies in the banking sector.