Absa Bank Kenya PLC reported a 10% drop in first half profit after tax to KES 10.5 billion, down from KES 11.7 billion a year earlier, the lender announced in its unaudited results for the six months to 30 June 2026.
The board approved an interim dividend of KES 0.50 per share, more than double the KES 0.20 paid out in the same period last year.
Profit Down on Lower Interest and FX Income
Group income fell 7% to KES 29.3 billion from KES 31.5 billion in H1 2025. Net interest income dropped 5% to KES 21.1 billion as the interest rate cycle eased, while non funded income fell 10% to KES 8.2 billion on weaker foreign exchange trading.
Operating expenses rose 6% to KES 12.1 billion, a rate the bank said stayed below inflation. Loan impairment charges fell 4% to KES 3.1 billion, which management attributed to improved credit quality.
Profit before tax fell 16% to KES 14.2 billion. Earnings per share came in at KES 1.94, down from KES 2.15. Total comprehensive income for the period, which includes fair value movements on government securities, fell to KES 10.4 billion from KES 13.3 billion.
| P&L Indicator (KES bn) | H1 2025 | H1 2026 | YoY Change |
|---|---|---|---|
| Income | 31.5 | 29.3 | -7% |
| Net Interest Income | 22.3 | 21.1 | -5% |
| Non Funded Income | 9.1 | 8.2 | -10% |
| Operating Costs | (11.4) | (12.1) | +6% |
| Impairment | (3.2) | (3.1) | -4% |
| Profit Before Tax | 16.8 | 14.2 | -16% |
| Profit After Tax | 11.7 | 10.5 | -10% |
| Earnings Per Share (KES) | 2.15 | 1.94 | -10% |
Balance Sheet Grows, Funding Costs Fall
Customer assets grew 8% to KES 330 billion. Customer deposits rose 5% to KES 381 billion, with transactional balances up 18%. Total assets increased 5% to KES 558 billion.
Total interest expense fell 18% to KES 6.2 billion. The bank’s cost of funds dropped 90 basis points to 2.8%, against an industry average of 3.8%. Current and savings account balances made up 75% of total deposits.
The gross non performing loan ratio stood at 10.1%, below the industry average of 14.6%, with coverage at 69%. The liquidity ratio was 42.7% against a statutory minimum of 20%. Core capital covered 21.4% of risk weighted assets, against a 10.5% regulatory minimum.
| Balance Sheet Metric (KES bn) | H1 2025 | H1 2026 | YoY Change |
|---|---|---|---|
| Customer Assets | 304.9 | 329.9 | +8% |
| Government Securities | 118.7 | 120.5 | +2% |
| Customer Liabilities | 361.3 | 380.7 | +5% |
| Total Assets | 531.6 | 558.1 | +5% |
| Total Shareholders’ Funds | 82.9 | 98.0 | +18% |
Dividend Raised, Tender Offer Under Way
The board declared an interim dividend of KES 0.50 per share, up from KES 0.20 in H1 2025, payable on or about 15 October 2026 to shareholders on record as of 18 September 2026.
Return on equity for the period stood at 21.7%. The bank confirmed that Absa Group Limited, its South African parent, has made a voluntary tender offer to acquire additional ordinary shares in Absa Bank Kenya PLC. The bank remains listed on the Nairobi Securities Exchange under its existing brand, board and management structure.
The results statement was signed by chairman Mohammed Nyaoga, interim managing director Yusuf Omari and interim chief finance officer Diana Mwaniki.
Absa Kenya shares opened 2026 at KES 24.70 and were trading around KES 33.35 to KES 33.40 by late July, a year to date gain of roughly 35%, and near the stock’s all time high of KES 34.60.
| Shareholder Metric | H1 2025 | H1 2026 |
|---|---|---|
| Return on Equity | — | 21.7% |
| Interim Dividend Per Share | KES 0.20 | KES 0.50 |
| Liquidity Ratio | — | 42.7% |
| Core Capital Ratio | — | 21.4% |
| Share Price (year to date) | KES 24.70 | ~KES 33.40 |
Other Disclosures
The bank said it has been recognised as Best Retail Bank in Kenya by the Global Banking and Finance Review. It cited the launch of a home financing product carrying a 9.9% annual interest rate with financing of up to 105% for qualifying buyers, a KES 1 billion Zinduka Graduate Enterprise Programme, and expanded unsecured housing loans for student accommodation.
Absa also said it has committed KES 100 billion over the next three years to asset financing for businesses in manufacturing, healthcare, education, infrastructure, trade and logistics, offering up to 100% financing for targeted assets.
Guidance
Management reiterated medium term targets of double digit growth in customer assets, a cost to income ratio in the 40s, return on equity at least 5 percentage points above cost of equity, and asset quality that continues to outperform the industry average.
The bank’s full statutory disclosures, including the statement of financial position, statement of comprehensive income, statement of changes in equity and cash flow statement, are available on its website and were approved by the board on 18 August 2026.
