Absa Bank Kenya H1 2026 Profit Falls 10.8% to KSh10.5 Billion as Dividend Rises 150%

Absa Bank Kenya recorded a 10.8% decline in profit after tax to KSh10.5 billion for the six months ended June 2026, from KSh11.7 billion in the first half of 2025, as net interest income and non-interest income declined.

The bank’s net interest income fell 5.4% to KSh21.1 billion from KSh22.3 billion, while non-interest income declined 10.2% to KSh8.2 billion from KSh9.1 billion.

Total operating income consequently fell 6.8% to KSh29.3 billion from KSh31.5 billion.

Despite the lower earnings, Absa Bank Kenya increased its interim dividend to KSh0.50 per ordinary share from KSh0.20 in the first half of 2025, representing a 150% increase.

The dividend is expected to be paid on 19 October 2026 to shareholders on the register as of 18 September 2026.

Absa Bank Kenya Loans Rise 8.2%

Loans and advances to customers increased 8.2% to KSh329.9 billion in H1 2026, compared with KSh304.9 billion a year earlier. The increase represents a KSh25 billion expansion in the bank’s loan book. Loan growth had stood at negative 3.6% in H1 2025.

Customer deposits also increased during the period, rising 5.4% to KSh380.7 billion from KSh361.3 billion. The loan-to-deposit ratio increased to 86.7% from 84.4%.

Total assets grew 5% to KSh558.1 billion from KSh531.6 billion, while total shareholders’ funds increased 10.1% to KSh98 billion from KSh89 billion.

Interest Income and Non-Interest Income Decline

Interest income declined to KSh27.4 billion in H1 2026 from KSh29.9 billion, while interest expense fell to KSh6.2 billion from KSh7.6 billion. The reduction in interest expense partly offset the decline in interest income, but net interest income still fell by KSh1.2 billion to KSh21.1 billion.

Non-interest income declined by KSh0.9 billion to KSh8.2 billion, with its growth rate moving from 3.3% in H1 2025 to negative 10.2% in H1 2026. Non-funded income accounted for 27.9% of total income, down from 29% a year earlier.

Absa Bank Kenya Operating Expenses Increase

Operating expenses rose to KSh12.1 billion from KSh11.4 billion, an increase of KSh700 million. Loan loss provisions, however, declined slightly to KSh3.1 billion from KSh3.2 billion.

Total operating expenses, including loan loss provisions, increased to KSh15.2 billion from KSh14.7 billion. The cost-to-income ratio consequently increased to 41.2% from 36.4%.

Profit before tax and exceptional items declined to KSh14.2 billion from KSh16.8 billion. There were no exceptional items reported in either period, leaving profit before tax at KSh14.2 billion compared with KSh16.8 billion in H1 2025.

Net tax declined to KSh3.6 billion from KSh5.1 billion.

Gross Non-Performing Loans Fall

Gross non-performing loans declined to KSh36.4 billion in H1 2026 from KSh44.2 billion in H1 2025, a reduction of KSh7.8 billion. The decline in gross non-performing loans came as the bank’s customer loan book expanded to KSh329.9 billion.

Absa Bank Kenya Share Price and Dividend

Shareholder returns increased during the period, with the Board approving an interim dividend of KSh0.50 per ordinary share, compared with KSh0.20 in 2025.

Absa Bank Kenya’s share price stood at KSh32.05 at the end of the first half of 2026, compared with KSh19.20 at the end of H1 2025.

The bank’s book value per share increased to KSh18.04 from KSh16.39, while its price-to-book ratio rose to 1.78 from 1.17. The number of issued shares remained unchanged at 5.43 billion.

At the H1 2026 financial results briefing, the bank reported that its share price had reached KSh34.15, representing a 38% year-to-date increase. Market capitalisation had risen to KSh185 billion.