Absa Bank Kenya PLC reported a 9.7% increase in profit after tax to KES 22.9 billion in FY2025, up from KES 20.9 billion recorded in FY2024, supported by a significant decline in operating expenses.
Total interest income declined by 10.9% to KES 57.5 billion, reflecting the easing interest rate environment. During the reporting and operational period under review, the Central Bank of Kenya (CBK) cut its policy rate – the Central Bank Rate (CBR), by 125 bps to 9.0% in December 2025 from 10.25% at the start of the year. The cut in the CBR led to cuts in the lending rate, resulting in a decline in the interest earned from core lending activities of the bank.
Meanwhile, total non-interest income rose by 12.2% to KES 18.1 billion, supported by growth in the lender’s payments business. Operating income stood at KES 61.4 billion, down 1.6% year-on-year, while Operating expenses fell by 12.2% to KES 28.6 billion, underscoring the bank’s prudent cost management in the period under review. Pre-tax profit rose to KES 32.7 billion, up 10.1% year-on-year, while profit after tax climbed 9.7% to KES 22.9 billion, marking the highest net earnings in the bank’s history. Earnings Per Share (EPS) improved to KES 4.22, up from KES 3.84 a year earlier.
Gross non-performing loans dropped by 8.9% to KES 38.9 billion, from KES 42.7 billion, reflecting improved asset quality during the year.
Absa Balance Sheet Expands 6% YoY
Absa’s assets base expanded 6.2% to KES 537.6 billion. Customer deposits rose marginally by 1.4% to KES 372.4 (69.3% of asset base vs 72.5% in FY 2024) billion, signaling robust customer engagements and relationships. Net loans and advances inched up to KES 312.2 billion, signaling modest loan uptake. The Loan to Deposit Ratio (LDR) stood at 83.8%, down from 84.3% in FY2024.
Shareholders’ funds rose sharply by 18.0% to KES 100.5 billion, powered by retained earnings, which increased by 15.8% to KES 86.7 billion from KES 74.9 billion in FY2024.
Absa Full Year Dividend Up 17% YoY
The Board of Directors approved a final dividend of KES 1.85 per share, bringing the total dividend for the year to KES 2.05 per share, up 17% year-on-year. The final dividend is payable on or about May 19, 2026, to shareholders on the register as of April 30, 2026. At a closing share price of KES 30.00 as of end of trading on 5th March 2026, the counter’s dividend yield was 6.8%.
The Nairobi Securities Exchange (NSE)-listed lender continues to position itself as a reliable dividend-paying stock, evidenced by a steady and progressively rising payout trend in recent years.
Below is a snapshot of analysis of the Full Year 2025 set of results as compared to Full Year 2024 results.
Also Read: COMESA Clears Vodacom to Raise Safaricom Stake to 55%
