Absa Bank Kenya PLC has posted a 10% rise in profit after tax to KShs. 22.9 billion for the year ended December 31, 2025. The performance was driven by resilient growth, prudent risk management, and strong operational efficiency.
Revenue and Dividend Growth
Total revenues closed at KShs. 61.4 billion, reflecting shifts in the interest rate environment. The Bank offset these changes through disciplined cost‑of‑funds management, underscoring execution strength.
On the back of stronger profitability, Absa declared a 17% increase in total dividend to KShs. 2.05 per share, comprising an interim dividend of KShs. 0.20 and a final dividend of KShs. 1.85 per ordinary share.
Managing Director & CEO Abdi Mohamed said the results highlight Absa’s role in supporting economic activity across individuals, enterprises, and communities while delivering sustainable returns.
“Our purpose of Empowering Africa’s tomorrow, together, one story at a time continues to guide our strategy. Disciplined execution has driven progress across priority areas, reaffirming our commitment to sustainable results and inclusive growth,” Mohamed noted.
Cost Management and Risk Discipline
Customer‑focused transformation and strict cost control reduced operating expenses by 5% to KShs. 22.4 billion. Impairment charges fell 32% to KShs. 6.2 billion, reflecting prudent credit‑risk management and a healthier loan portfolio.
Net interest income declined by 6%, but non‑interest income rose 12% to KShs. 18.1 billion, supported by Absa’s payments business. Total assets grew 6% to KShs. 537.6 billion, with customer deposits at KShs. 372.4 billion and customer assets at KShs. 312.2 billion.
Business Segment Highlights
- Personal & Private Banking: Launch of Absa Wealth, enhancements to the Prestige proposition, and expansion of agency banking to 8,060 outlets.
- Asset Management & Bancassurance: Asset management ranked among Kenya’s top three money market funds; Bancassurance maintained market‑leading profitability.
- Business Banking: Expanded Shariah‑compliant La Riba offering, marking 20 years of Islamic banking leadership, and introduced the Business Credit Card to support SMEs.
- Corporate & Investment Banking: Executed a KShs. 16 billion Medium Term Note and a US$156 million solar securitisation. Assets under custody surpassed KShs. 69 billion, while Global Markets achieved a 15% FX revenue share, boosted by diversified streams and the dual listing of the Satrix MSCI World ETF.
Technology and Efficiency Gains
Absa digitised 71% of customer processes, with 94% of transactions conducted through alternative channels. Modernisation of branch banking and automation delivered measurable efficiency gains, cutting total costs by 5% and improving the cost‑to‑income ratio to 36.5%.
Sustainability and Capital Strength
The Bank’s sustainability agenda remains anchored in prudent risk management and balance sheet strength. Capital adequacy stood at 21.0%, while liquidity reserves reached 45.6%, well above regulatory thresholds.
“Looking ahead, Absa is positioned to sustain momentum, underpinned by a strong financial foundation and disciplined execution,” Mohamed said. “We will continue to strengthen our brand, invest in technology that enhances customer experience, and build the leadership and culture needed to deliver consistently in a changing environment.”
