Absa Bank Kenya has announced a net profit increase of 3 percent in the first three months of the year. The results by the lender show that Absa Bank Kenya Q1 2025 net profit increased from Sh5.9 billion that was recorded in the first quarter of 2024 to the current Sh6.2 billion.
In the period under review, net interest income went down by 1.1 percent to stand at Sh11.3 billion while non-interest income went down by 11 percent to Sh4.5 billion.
The bank’s total assets however increased by 4.5 percent to stand at Sh520.2 billion. At the same time, in the period under review, loans and advances to customers dipped by 5.6 percent to Sh308.4 billion while provisions went down by 39 percent to Sh1.5 billion. Gross non-performing loans went up by 13.4 percent to Sh44 billion.
“For the period under review, our customer-focused transformational investments, with prudent cost control, resulted in a 1 percent reduction in total costs to Sh5.5 billion. Impairment charges improved by 39 percent to Sh1.5 billion compared to the same period last year, reflecting our continued commitment to sound risk management. The Bank maintained strong portfolio quality, underpinned by a sufficient coverage ratio to manage and minimize potential future credit losses,” the lender stated in a statement.
Customer deposits however recorded growth of 4.6 percent to Sh371 billion with earnings per share inching upwards by 4.6 percent to Sh6.2 billion.
READ MORE: Absa Bank Kenya full year net profit rises 27.5 percent to Sh20.9 billion
According to the bank’s chief executive officer and managing director Abdi Mohamed, looking ahead, the bank has positioned itself to accelerate growth over the remaining three quarters in the calendar year.
“We remain focused on investing in customer-led initiatives while navigating external challenges. We will continue to execute our mandate and strategy with discipline, positioning Absa as a forward-looking financial services leader,” he said. “Our ongoing investments in digital transformation and employee development also remain key drivers of sustainable success.”
