Absa Bank has reported a Sh22.9 billion after-tax profit for the year ended December 2025, representing a 10 percent growth buoyed by cost-cutting.
The lender’s profit rose from Sh20.8 billion reported in the preceding year, a rise largely attributable to a 12.2 percent reduction in operating expenses.
Absa spent Sh28.6 billion last year to keep its operations running, down from Sh32.6 billion in 2024, a move that helped cover the decline in revenue in the bank’s core business of lending.
The bank’s loan book grew marginally by one percent to Sh312.1 billion, up from Sh309 billion. Interest income from lending declined to Sh42.8 billion from Sh53.3 billion.
The drop in interest earned from loans followed a decline in the price of credit as the Central Bank of Kenya aggressively cut its indicative rate (CBR) to push banks to lower their lending rates.
Investment in government securities, which grew by 17 percent, earned the bank Sh13.2 billion, helping to cover the hole left by the decline in earnings from loans.
“In an operating environment that remains largely complex, our profit after tax grew by 10 percent year-on-year to Sh22.9 billion, supporting sustainable returns on equity of 22.8 percent,” said the bank’s chief executive Abdi Mohamed.
“Revenue closed the year at Sh61.4 billion, a two percent decline from last year. This decline is attributed to a reduction in interest rates, although it was offset by better cost of funds management,” he added.
