Absa Bank Kenya has increased its shareholder payout by 17 percent to KES2.05 per share, driven by a strong performance in 2025 that saw its net earnings rise by 10 percent to KES22.9 billion.

The bank's total shareholder payout for the fiscal year ended December 2025 includes an interim dividend of KES0.20 and a final pay of KES1.85 per ordinary share.

The lender said its strong performance during the period was backed by resilient growth, prudent risk management and strong operational efficiency.

Customer deposits increased to KES372.4 billion, while total assets grew by 6 percent to KES537.6 billion, underscoring the resilience of the bank’s balance sheet. 

In a year marked by changes in the interest rate environment, Absa Bank saw loans and advances increase marginally at 1 percent to KES312.2 billion.

During the year, the lender's stock of non-performing loans decreased by 8.4 percent to KES38.9 billion even as impairment charges improved significantly by 32 percent to KES6.2. The lender said this reflects "prudent credit-risk management and a healthier portfolio with adequate coverage ratios".

Changes in interest rates

The Nairobi Securities Exchange listed lender said revenues closed the period at KES61.4 billion, reflecting changes in the interest rate environment, which were offset through disciplined cost-of-funds management.

Absa Bank Kenya CEO, Abdi Mohamed, said the results underscore Absa’s role in supporting economic activity across individuals, enterprises, and communities, while maintaining a clear focus on sustainable returns for shareholders.

“Our purpose of Empowering Africa’s tomorrow, together, one story at a time, continued to inform our strategic direction, while disciplined execution drove material progress across priority areas. These outcomes therefore reaffirm our commitment to sustainable results while ensuring inclusive growth of our customers, stakeholders and communities we serve,” said Mr. Mohamed.

In the period under review, the Bank’s continued investment in customer-focused transformation and disciplined cost management delivered a 5 percent reduction in operating expenses to KES22.4 billion. 

At the same time net interest income declined by 6 percent, while non-interest income grew by 12 percent to KES18.1 billion, supported by Absa’s payments business. 

Performance was also supported by growth in digital and non-funded income streams. The asset management business expanded into the top three money market funds in Kenya, while Bancassurance maintained a market-leading position in profitability.

In Business Banking, Absa expanded its Shariah-compliant La Riba offering, marking 20 years of Islamic banking leadership, and advanced SME growth through partnerships, anchor-led ecosystems, and the introduction of the Business Credit Card.

Corporate and Investment Banking 

Corporate and Investment Banking delivered high-impact execution, leading to KES16 billion Medium Term Note and a US$156 million solar securitisation, while strengthening transactional banking and digital payments. 

Assets under custody exceeded KES69 billion, and the Global Markets business achieved a 15 percent market share in foreign exchange revenues, supported by diversified income streams and the dual listing of the Satrix MSCI World ETF on the Nairobi Securities Exchange.

Absa Bank Kenya delivered a return on equity of 22.8 percent, reflecting resilient profitability and effective capital deployment.

The bank has continued to digitise and automate its customer journeys, with 71 percent of customer processes digitised and 94 percent of transactions conducted through alternative channels. 

Alongside the modernisation of the branch banking experience, these investments have delivered measurable efficiency gains, contributing to a 5 percent reduction in total costs and an improved cost-to-income ratio of 36.5 percent, reflecting a disciplined approach to scale, productivity, and service excellence.

Additionally, capital and liquidity positions remained well above regulatory thresholds, with a total capital adequacy ratio of 21 percent and a liquidity reserve ratio of 45.6 percent.