Absa Bank Kenya has posted a 15 percent jump in net profit, closing the nine months to September 2025 with earnings of KSh16.9 billion. The lender’s performance was driven largely by stronger non-interest income, which rose 11 percent to KSh13.6 billion on the back of a deliberate push into new business lines.
Total revenue for the period stood at KSh46.6 billion, mirroring last year’s performance in what the bank described as a tight interest-rate environment. Net interest income dipped by 5 percent to KSh33 billion, reflecting the pressure on margins across the sector.
Managing Director and Chief Executive Abdi Mohamed said the results show that the bank’s strategy is taking hold even as it operates in a challenging economic climate. He noted that Absa’s financial and non-financial support continues to help individuals, entrepreneurs and corporates pursue growth.
“Our purpose remains clear — empowering Africa’s tomorrow, one story at a time,” he said. “We see our customers striving to grow, to achieve, and to build something meaningful. These results re-affirm our commitment to walk that journey with them.”
The balance sheet showed steady expansion across key areas. Customer deposits rose 9 percent to KSh384 billion, while loans and advances closed at KSh310 billion. Total assets climbed 14 percent to KSh554 billion, highlighting what the bank called a resilient capital position.
Mr Mohamed added that the bank is accelerating its transformation agenda to ensure it remains competitive and well-positioned for long-term growth.
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During the period, Absa expanded its consumer banking footprint, rolling out Eco Home loans and increasing its agency banking network to 8,060 outlets nationwide. In business banking, the lender launched Sultana, a Shariah-compliant proposition for women, and marked two decades of Islamic banking with its first annual conference.
The corporate and investment banking division notched a major milestone through a $156 million solar securitisation deal, the largest of its kind in Sub-Saharan Africa outside South Africa. The transaction boosted Absa’s credentials in sustainable finance and renewable-energy investment.
On the sustainability front, the bank released its third Sustainability and Climate Report and picked up several awards, including recognition for social innovation, leadership in climate finance and excellence in sustainability reporting.
The lender reported a return on equity of 24 percent, supported by improved efficiency. Total costs dropped by 1 percent to KSh17.5 billion, pushing the cost-to-income ratio down to 37.6 percent. Digitisation remains a major focus, with 71 percent of internal processes now automated and 94 percent of transactions happening through alternative channels.
Impairment charges fell by 40 percent to KSh4.8 billion, which the bank attributed to disciplined risk management and a healthier credit portfolio.
Absa closed the quarter with strong buffers, posting a total capital adequacy ratio of 20.9 percent and a liquidity reserve of 49.8 percent, both comfortably above regulatory thresholds. The bank said this gives it ample room to continue investing and supporting growth across its business lines.
