Absa Bank has reported a 15% increase in net earnings, reaching Kshs.16.9 billion for the nine-month period ending September 30, 2025.
This growth was supported by an expanded revenue stream, which drove an 11% growth in non-interest income to Kshs.13.6 billion, underpinned by strategic diversification into new business lines.
Total revenues for the third quarter period closed at Kshs.46.6 billion, same level as last year, reflecting an operating context that was largely characterized by a compressed rates environment. Net interest income dropped by 5% to Kshs.33.0 billion as a result.
Absa Bank Kenya PLC Managing Director & CEO, Abdi Mohamed, said the performance demonstrates the progress the Bank is making in executing its strategic aspirations, while carefully navigating the dynamics in the operating landscape. The improved results further demonstrate the role Absa plays in empowering the growth stories of individuals, businesses, and communities through relevant financial and non-financial interventions.
“In the period under review, we continued to demonstrate our purpose in action: Empowering Africa’s tomorrow together, one story at a time. This has been achieved through the provision of financial and non-financial resources to our customers, availing the requisite support to attain their ambitions,” said Mr. Mohamed.
“We see our customers’ determination to achieve their dreams, grow their businesses and write impactful stories, and these results re-affirm our commitment to continue supporting them. We remain confident in our ability to support our clients effectively and to unlock significant growth opportunities across all our businesses in Consumer, Business and Corporate and Investment Banking,” He added.
The Bank’s balance sheet also showed notable strength. Customer deposits rose by 9% to Kshs.384 billion, while customer assets closed at Kshs.310 billion. Total assets grew by 14% to Kshs.554 billion, reflecting Absa’s solid financial foundation.
“Our strategy remains relevant and resilient to serve our customers in line with our purpose. In addition, we are accelerating the progressive transformation of our organisation to continue positioning ourselves for sustained outperformance,” added Mr. Mohamed.
Key strategic performance highlights:
Towards Becoming a Modern-day Consumer Financial Services Business
- Launch of Eco Home loans new product
- Network and channel expansion in high growth areas
- Doubled agency banking outlets bringing the total number to 8060 outlets
Towards Becoming a Market Leader in Business Banking
- Launch of Sultana – Shariah compliant Women Proposition
- Celebrated 20 years of Islamic Banking and hosted the first Annual Islamic Conference
- Through the Absa Business Club and capacity-building initiatives, we continued to empower SMEs and entrepreneurs with the tools, knowledge, and networks they need to grow.
Towards Being a Powerhouse Corporate and Investment Bank in Connecting Ecosystems
- Groundbreaking solar securitisation deal valued at $156 million (KES 20.1 billion), representing the largest transaction of its kind in Sub-Saharan Africa outside of South Africa. This landmark deal demonstrates our leadership in sustainable finance and our commitment to innovative investment solutions that expand energy access and support climate resilience.
Sustainability & Citizenship
- Launched our third Sustainability and Climate Report in the market
- Awards: Social Innovation Impact award – (innovating around e-waste management), Best Sustainability Report, Green Climate Finance Awards.
Other highlights include:
Return on Equity
The Bank’s strong profitability performance has delivered a return on equity of 24%, reinforcing our commitment to generating sustainable value for shareholders.
Efficiency
We continue to build on our transformational investments in customer experience and operational efficiency. Currently, 71% of our customer processes are digitised and automated, with 94% of customer transactions now serviced through alternative channels. Additionally, we are modernising our branch banking experience to further enhance service delivery.
These strategic investments have yielded tangible results, including a 1% reduction in total costs, which now stand at Kshs.17.5 billion. Consequently, our cost-to-income ratio has improved to 37.6%.
Impairment
Impairment improved by 40% to Kshs.4.8 billion compared to the same period last year, reflecting the Bank’s commitment to prudent risk management principles amidst strong balance sheet and a challenging operating environment. The Bank continues to maintain a healthy portfolio quality and has established a sufficient coverage ratio to effectively minimize and manage potential future credit losses.
Capital & Liquidity
The Bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement. The Bank’s total capital adequacy ratio closed at 20.9% and liquidity reserve position at 49.8% against the regulatory limits of 14.5% and 20%, respectively. The strong position of capital will support the Bank’s growth and investments agenda.
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