Absa Bank Kenya PLC has reported a KSh 6.2 billion net profit for the first quarter of 2025, marking a 4% year-on-year increase, even as total revenue slipped 4% to KSh 15.8 billion.
- •Net interest income remained relatively flat at about KSh 11 billion, while non-interest income fell to KSh 4.5 billion, an 11% dip compared to the same period last year.
- •Absa’s operating costs dropped 1% to KSh 5.5 billion, while loan impairment charges fell 39% to KSh 1.5 billion.
- •The bank attributed the revenue dip primarily to a softening in foreign exchange trading income, as currency volatility declined.
Although customer deposits rose 5% in Q1 to KSh 371 billion, customer assets contracted by 6% to KSh 308 billion, highlighting cautious lending amid lingering economic uncertainty.
Absa Bank’s Non-performing loans (NPLs) increased in Q1 to KSh 36 billion from KSh 32 billion last year, a 12% surge. Despite these challenges, the bank’s capital adequacy remains above regulatory minimums, at KSh 88.7 billion. The ratio of core capital to total deposit liabilities rose to 20.5%. The total Group assets rose to KSh 520 billion by March this year, a 5% increase.
The bank did not declare an interim dividend for the quarter. Earnings per share stood at Ksh 1.14, up from Ksh 1.09 in Q1 2024.
