Absa Bank Kenya recorded a net profit of Sh6.2 billion for the first quarter ended March 31, 2025, up 4 per cent from the same period last year, despite a drop in revenue and challenging economic conditions.

Total revenue declined by 4 per cent to Sh15.8 billion, mainly due to a reduction in non-funded income, which fell by 11 per cent to Sh4.5 billion.

Funded income also dipped slightly, closing at Sh11.3 billion.

Operating costs were trimmed by 1 per cent to Sh5.5 billion, which helped improve the cost-to-income ratio to 35 per cent.

Credit quality improved as impairment charges dropped by 39 per cent year-on-year to Sh1.5 billion, backed by stronger risk controls and a solid portfolio coverage.

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The loan book expanded to Sh308 billion during the quarter, while customer deposits rose by 5 per cent to Sh371 billion.

Total assets increased by a similar margin, reaching Sh520 billion.

Return on equity rose to 27 per cent, reflecting stronger capital efficiency.

The bank’s capital adequacy ratio stood at 20.4 per cent, and its liquidity reserve ratio closed at 46.9 per cent—both well above regulatory minimums.

Managing Director and CEO Abdi Mohamed said the performance demonstrated the bank’s focus on financial resilience and disciplined execution.

“We are satisfied by the progress attained in the review period, even as we implement prudent measures to strengthen and sustain our balance sheet momentum in the near term,” he said.

He added that the bank would continue prioritising sustainable growth, digital transformation, and customer-led initiatives across all business segments.

He added that the bank would continue prioritising sustainable growth, digital transformation, and customer-led initiatives.

“Looking ahead, we remain strategically positioned for sustainable growth, anchored by a strong financial foundation and disciplined execution. Our focus is firmly on delivering high-impact, customer-led initiatives while navigating a dynamic external environment,” Mohamed added.

With a firm capital position and continued investment in risk controls and operational efficiency, the bank appears focused on maintaining its growth path while adapting to market shifts.

The performance sets a steady tone for the rest of the year as it balances profitability with resilience