How Absa Bank Kenya Achieved 9% Profit Growth in H1 2025 Despite Market Challenges

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Absa Bank Kenya PLC posted a 9% increase in profit after tax to KShs 11.7 billion for the half-year ended 30 June 2025, delivering a return on equity (ROE) of 26.5% despite a challenging operating environment.

The Absa Bank Kenya H1 25 performance was underpinned by improved operational efficiency, strong capital management, and diversified revenue streams. Customer deposits rose 2.3% to KShs 361 billion, while total assets expanded 10.4% to KShs 532 billion.

Non-performing loans fell sharply by 38% to KShs 3.2 billion, even as loans and advances stood at KShs 305 billion, down 3.6% year-on-year.

Non-interest income increased 3.3% to KShs 9.1 billion, driven by transaction-based earnings and a broader range of revenue sources. Total revenue declined slightly by 1.2% to KShs 31.5 billion, with net interest income slipping 2.9% to KShs 22.3 billion due to tighter margins.

Operating expenses grew marginally by 1% to KShs 11.4 billion, improving the cost-to-income ratio to 36.4%, while the capital adequacy ratio remained strong at 20.5%.

On the back of these results, Absa Bank Kenya announced an interim dividend of KShs 0.20 per share, amounting to KShs 1.1 billion.

Yusuf Omari, Chief Financial Officer, said the payout reflects the bank’s commitment to delivering shareholder returns, while the strong capital position allows continued investment in customer experience and operational efficiency.

“On the back of our strong financial performance, the Board has approved an interim dividend of Ksh 0.20 per ordinary share in line with our commitment of delivering returns to our shareholders.” Yusuf Omari noted.

Abdi Mohamed, Absa Bank Kenya Chief Executive Officer, added that the results demonstrate the strength and resilience of the business, with a strategy that remains relevant and adaptable for long-term growth.

“Our strong H1 performance affirms our dedication to fostering inclusive growth and creating long-term value for our shareholders and the communities we serve.” Abdi said.

“Our strategy remains relevant and adaptable, allowing us to achieve solid results sustainably. We are creating value through both traditional and emerging revenue streams while positioning the business for long-term growth.” he added.

Beyond financial performance, Absa Bank Kenya H1 25 also advanced community and youth development initiatives. The bank trained 37,000 youths through its #ReadyToWork program during the period, bringing the total number of empowered youths to over 300,000.

Additionally, more than 40,000 women entrepreneurs benefited from financial and non-financial support. Environmental initiatives included financing climate projects and planting over 243,000 trees, increasing the total trees planted and nurtured to 1.75 million.

The bank’s H1 25 performance also reflects business expansion and product innovation. Absa Bank Kenya opened new markets in Estonia and the USA, provided SMEs with access to funding and export opportunities, revamped Shariah-compliant La Riba solutions.

Absa Kenya further broadened investment options with products such as the Satrix MSCI World ETF, and offered personalized FX solutions for clients.

Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.