Absa Bank Kenya recorded mixed Q3 results with PAT up 14.7% to KSh 16.9Bn while net interest income dipped 4.6%, the first fall since 2017.
- •Interest from loans dropped to KSh 32.60Bn from 40.59Bn as lending stayed weak for a second year. Investment in government securities rose to 119Bn from 71Bn.
- •The lender held operating income at KSh 46.56Bn as non-interest income rose 11.2% to 13.61Bn but net interest income slipped to 32.95Bn from 34.53Bn as loan yields softened.
- •Gross NPLs remained sticky rising 3.9% to 44.31Bn, which the bank offset through stronger collections and lower new defaults.
Total interest income eased to 43.97Bn from 48.64Bn. Interest from government securities increased 53.5% to 10.12Bn as the bank shifted toward lower-risk assets. Interest expense easing to 11.02Bn from 14.11Bn.
Impairments dropped 39.6% to 4.85Bn, reflecting better credit performance and tighter underwriting leading to overall operating expenses to drop 13% to 22.35Bn. These two lines lifted Profit Before Tax 14.9% to 24.21Billion with earnings per share increased to 3.11 from 2.71.
The loan book fell for a second year, sliding to 309.7Bn from 311.5Bn and down from 330.9Bn in 2023. Weak credit demand and a cautious stance on risk limited new lending. Government securities rose to 119Bn from 71Bn as the bank rebalanced its portfolio.
Total assets grew 14.5% to 554.32Bn, driven by growth in deposits and investments in government paper. Customer deposits rose 9.3% to 384.32Bn. Equity increased 22.1% to 94.36Bn as retained earnings lifted capital.
| Metric | Q3 2025 | Q3 2024 | YoY % |
|---|---|---|---|
| Net Interest Income | 32.954 Bn | 34.528 Bn | ▼ –4.6% |
| Non-Interest Income | 13.605 Bn | 12.234 Bn | ▲ +11.2% |
| Operating Income | 46.559 Bn | 46.763 Bn | ▼ –0.4% |
| Total Operating Expenses | 22.350 Bn | 25.701 Bn | ▼ –13.0% |
| Loan Loss Provision | 4.846 Bn | 8.026 Bn | ▼ –39.6% |
| Profit Before Tax (PBT) | 24.209 Bn | 21.062 Bn | ▲ +14.9% |
| Profit After Tax (PAT) | 16.918 Bn | 14.746 Bn | ▲ +14.7% |
| Total Assets | 554.319 Bn | 484.350 Bn | ▲ +14.5% |
| Total Equity | 94.358 Bn | 77.322 Bn | ▲ +22.1% |
| Customer Deposits | 384.316 Bn | 351.797 Bn | ▲ +9.3% |
| Loans & Advances (Net) | 309.725 Bn | 311.461 Bn | ▼ –0.6% |
| Gross NPLs | 44.306 Bn | 42.668 Bn | ▲ +3.9% |
| Earnings per Share (EPS) | 3.11 | 2.71 | ▲ +14.8% |
Management highlighted progress in retail, SME and corporate lines. Digital channels and payments continued to support non-interest income. The rise in government securities signals a defensive stance while the loan book remains soft.
