Absa books 15pc profit jump to Sh17b despite revenue dip
Business
By
Brian Ngugi
| Nov 18, 2025
Absa Bank Kenya weathered a marginal decline in total revenue to post a 15 per cent jump in profit for the nine months to September this year.
This came as stringent cost controls and a significant drop in money set aside for bad loans shielded its earnings.
The tier-one lender, part of Johannesburg-based Absa Group, said on Tuesday its profit after tax for the period ended September 30 rose to Sh16.9 billion from Sh14.7 billion a year earlier, even as total revenue dipped to Sh46.6 billion.
The performance points to how major banks are leveraging improved risk management and diversified income streams to navigate a challenging economic environment marked by squeezed interest margins.
READ MORE
Firms partner to digital transform fuel station operations
UN agency, Equity Foundation partner to empower African entrepreneurs
AI, integrity of refugee systems dominate talks in global judges event
Sales teams confront change from hard selling to trust and value
MPs probe why some tea farmers earned as low as Sh10 bonus
NGOs contribute Sh53 billion annually, KRA says
UN turns to China to plug aid deficit after Trump funding cuts
Why super-rich are rushing to relocate family offices
"Despite operating in an increasingly complex environment during the period under review, we navigated the challenges effectively, resulting in a resilient financial performance," Absa Managing Director Abdi Mohamed said in a statement.
The performance was largely driven by a 40 per cent improvement in impairment charges (money set aside for bad or non-performing loans), which fell to Sh4.8 billion.
At the same time, non-interest income, comprised of revenue from fees and transactions, grew 11 per cent to Sh13.6 billion, helping to offset a five per cent decline in net interest income.
Total revenue for the period saw a 0.43 per cent decline to Sh46.6 billion from Sh46.7 billion, which the bank attributed to pressure on its net interest margins in a competitive market.
However, the lender said “disciplined management of the cost of funds and the strong performance of its payments business helped mitigate the drop.”
Operating expenses were contained, further helping the bank’s bottom line, rising only slightly to Sh17.5 billion, with the bank saying it balanced investment in new technology with cost discipline.
The bank's customer deposits during the period increased by nine per cent to Sh384 billion.
However, its loan book dipped marginally to Sh309 billion, reflecting what the bank called "the dynamic macroeconomic environment" that has dampened credit demand from some sectors.
Absa highlighted progress in its strategic segments. In its retail division, it said it launched green-focused "Absa Eco Home Loans" and doubled its agency banking network to over 8,000 outlets, expanding its reach across the country.
The corporate and investment bank secured a landmark deal, closing a Sh20.1 billion solar securitisation, which it said was the largest of its kind in sub-Saharan Africa outside of South Africa.
CEO Mohamed said the bank would continue to focus on “customer-centric investments and digital transformation to drive future growth.”
"The bank is well-positioned for continued growth, supported by strong financials and a clear strategic direction," the bank said, pointing to its healthy capital levels as key advantages.
Absa is the latest tier one lender to announce its earnings for the nine months. Absa's results come amid a mixed picture for Kenya's banking sector.
Equity Group reported a 32.66 per cent surge in third-quarter profit, powered by its regional subsidiaries, to Sh52.1 billion from Sh39.2 billion, while Co-operative Bank posted a 12.3 per cent rise in earnings to Sh21.6 billion, up from Sh19.2 billion in the same period last year.
The performance of these major lenders offers a ray of hope for the financial sector amid a broader corporate slowdown. More banks are expected to publish their third-quarter results in the coming days.