Absa Bank Kenya PLC has reported a 9 percent increase in net earnings to KES11.7 billion for the six months ended June 30, 2025 amid a challenging trading environment.

With a strong return on equity of 26.5 percent, Absa Bank said the results reflect its disciplined execution, prudent risk management, while reinforcing its commitment to sustainable shareholder value.

“Our results highlight the resilience of our operations and the relevance of our growth strategy, centered on being the primary partner for our customers,” said Absa Bank Kenya CEO Abdi Mohamed, adding: “We are unlocking value across both traditional and emerging revenue streams while positioning the business for long-term growth.

During the half, net interest income decreased by 2.9 percent to KES22.3 billion, while non-interest income posted a 3.3 percent uptick to KES9.1 billion, attributable to the lender's diversified streams from fees and commissions.

The Nairobi Securities Exchange-listed bank reported KES31.5 billion in revenue, reflecting a 1.2 percent drop in comparison to similar period in 2024 due to lower interest rates, which were partly offset by improved cost of funds management. 

Customer deposits edged up by 2.3 percent to close the period at KES361 billion, while loans dipped by 3.6 percent to KES305 billion, "reflecting the prevailing macroeconomic headwinds" the bank said.

Non-performing loans

Non-performing loans increased by 12.3 percent to KES44.2 billion reflecting the impact of worsening business climate in the country. 

"We are hoping we can extend a bigger component of this balance sheet [loans] to private sector lending, with the expectation that this should pick up in the second half, ramping up lending," stated Yusuf Omari, Chief Finance Offer, Absa Bank Kenya. 

Overall, total assets increased by 10.4 percent to KES532 billion. The lenders bancassurance unit saw its asset management segment grow to over KES30 billion in assets under management, the third largest in the market. 

In Corporate and Investment Banking, the Bank executed landmark transactions, including being the lead advisor in a KES2.5 billion rights issue and the dual listing of the Satrix MSCI World ETF. The launch of the Absa Custody Business further deepened its capital markets infrastructure.

The lender's remittance market share rose through personalised forex solutions, while also upgrading in digital channels as well as branch, ATMs and agency networks during the period under focus. 

"We also strengthened support for entrepreneurs and businesses through global trade missions -including to Estonia and the USA- launch of the Absa Business Credit Card, and an expanded Shariah-compliant La Riba offering," Absa said in an update.

Embedding sustainability across the business remained a core focus with about KES20 billion advanced in sustainable finance. 

"Our strategy remains resilient and adaptable, enabling us to deliver strong results while continuing to invest in the capabilities, partnerships, and innovations that will define our future,” added Mr. Mohamed.

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