Absa Bank Kenya has reported a 4% rise in net earnings to Ksh 6.2 billion for the quarter ending March 31, 2025.
While total revenues declined by 4% year-on-year to Ksh 15.8 billion, dragged down by an 11% drop in non-funded income and a marginal slip in funded income, Absa’s credit performance and strong balance sheet management helped cushion the impact. The bank’s total loans and advances reached Ksh 308 billion and customer deposits grew by 5% to Ksh 371 billion.
CEO Abdi Mohamed described the performance as a testament to Absa’s future-oriented strategy and its commitment to enabling customers’ financial journeys.
“We’re implementing a forward-looking five-year strategic plan built around our purpose: Empowering Africa’s tomorrow, together… one story at a time. Even in a challenging operating environment, we have remained focused on growth, resilience, and customer value,” he said.
One of the key differentiators in Absa’s recent performance is its dual focus on digital transformation and community impact. The bank has offered select SMEs international exposure to global innovation hubs in Estonia, Finland, and the U.S. This gives them access to best practices in enterprise growth and digital innovation.
On the consumer side, Absa enhanced its wealth management proposition, and for the corporate segment, it accelerated its thought leadership series. This helped business leaders across Kenya navigate economic uncertainty.
Absa’s focus on cost discipline and credit quality was evident in the numbers. Operating costs were trimmed by 1% to Ksh 5.5 billion leading to an improved cost-to-income ratio of 35%. On the other hand, impairment charges dropped sharply by 39% to Ksh 1.5 billion.
The bank’s capital adequacy ratio was 20.4%, while the liquidity reserve ratio came in at 46.9%.
Absa’s management remains optimistic about the road ahead. With a strong financial foundation and a clear execution roadmap, the bank plans to double down on digital transformation, deepen customer relationships, and solidify its position as a partner of choice for businesses, individuals, and communities.
“Our ambition is to be a forward-looking, innovation-driven financial partner across consumer, SME, and corporate segments. With disciplined execution and a customer-first mindset, we’re confident in our ability to create long-term value,” Mohamed added.
