Absa Bank Kenya PLC posted a 15% rise in net earnings to KShs 16.9 billion for the nine months ending September 30, 2025, driven by stronger non-interest income and lower credit impairments, despite a dip in net interest income.
The bank’s non-interest income rose 11.2% to KShs 13.6 billion, supported by strategic diversification into new business lines and growth in digital payments.
However, net interest income fell 4.6% to KShs 32.95 billion, marking the first decline since 2017, as loan yields softened in a compressed rate environment.
Absa Bank Kenya CEO Abdi Mohamed attributed the performance to customer-centric strategy and operational resilience:
“We continued to demonstrate our purpose in action: Empowering Africa’s tomorrow together, one story at a time. These results reaffirm our commitment to support our clients and unlock growth opportunities across all segments,” said Mohamed.
“Our strategy remains relevant and resilient. We are accelerating the progressive transformation of our organisation to continue positioning ourselves for sustained outperformance.”
Key Financial Highlights – Q3 2025
| Metric | Q3 2025 | Q3 2024 | YoY Change |
|---|---|---|---|
| Net Interest Income | KShs 32.95Bn | KShs 34.53Bn | ▼ –4.6% |
| Non-Interest Income | KShs 13.61Bn | KShs 12.23Bn | ▲ +11.2% |
| Operating Income | KShs 46.56Bn | KShs 46.76Bn | ▼ –0.4% |
| Operating Expenses | KShs 22.35Bn | KShs 25.70Bn | ▼ –13.0% |
| Loan Loss Provision | KShs 4.85Bn | KShs 8.03Bn | ▼ –39.6% |
| Profit Before Tax | KShs 24.21Bn | KShs 21.06Bn | ▲ +14.9% |
| Profit After Tax | KShs 16.92Bn | KShs 14.75Bn | ▲ +14.7% |
| Total Assets | KShs 554.32Bn | KShs 484.35Bn | ▲ +14.5% |
| Total Equity | KShs 94.36Bn | KShs 77.32Bn | ▲ +22.1% |
| Customer Deposits | KShs 384.32Bn | KShs 351.80Bn | ▲ +9.3% |
| Net Loans & Advances | KShs 309.73Bn | KShs 311.46Bn | ▼ –0.6% |
| Gross NPLs | KShs 44.31Bn | KShs 42.67Bn | ▲ +3.9% |
| Earnings per Share | 3.11 | 2.71 | ▲ +14.8% |
Strategic Shifts & Portfolio Trends
- Loan book contraction: Net loans fell for the second year to KShs 309.7Bn, down from KShs 330.9Bn in 2023, as credit demand remained weak and risk appetite cautious.
- Government securities surge: Investment in government paper rose 53.5% to KShs 119Bn, signalling a defensive rebalancing of the bank’s asset mix.
- Interest income: Total interest income eased to KShs 43.97Bn, while interest expense dropped to KShs 11.02Bn, improving margins.
- Impairments and cost control: Loan loss provisions dropped 39.6%, and operating expenses fell 13%, boosting profitability.
Outlook
Management highlighted continued momentum in retail, SME, and corporate banking, with digital channels playing a key role in sustaining non-interest income. The bank remains focused on risk-adjusted growth, capital efficiency, and customer empowerment.
KCB Group Q3 2025: Net Profit Hits KShs 47.3B, Assets Cross KShs 2 Trillion
