By John Mutiso
Absa Bank Kenya’s Q3 2025 profit after tax stands at KSh 16.9 billion, reflecting a 14.7% increase from the same period last year. This growth is notable despite a challenging operating environment.
The lender’s operating Income decreased slightly by 0.4% to KSh 46.56 billion, largely due to a 4.6% drop in net interest income. However, this was partially offset by an 11.2% growth in non-funded income, reaching KSh 13.61 billion.
Non-Funded Income grew 11.2% to KSh 13.61 billion, driven by diversification efforts such as Bancassurance which experienced significant growth, contributing to the bank’s revenue.
The lender’s balance sheet size grew 13.5% from KSh 484.35 Billion to KSh 554.319 Billion as at September 2025. Customer deposits were up 9.3% to KSh 384.316 Billion against loans given to customers which declined 0.6% from KSh 311.461 Billion to KSh 309.725 Billion in Q3 2025.
The lender’s non-performing loans rose 3.9% from KSh 42.668 Billion to KSh 44.306 Billion, an indication of the prevailing tough conditions in the banking business. Earnings per Share, one of the indicators of profitability was up 14.8% from KSh 2.71 to KSh 3.11.
Absa Bank made a substantial cut in loan loss provisions from KSh 8.01 Billion in Q3 2024 to KSh 4.85 Billion in Q3 2025, a drop of 39.6%. It also made cuts in Operating Expenses from KSh 25.7 Billion to KSh 22.4 Billion during the period under review.
Absa Bank’s Asset Management and Custody Business also saw substantial growth, now accounting for a considerable portion of the bank’s revenue. Its CEO, Abdi Mohamed, highlighted the bank’s focus on digital transformation, innovation, and customer-centric solutions. The bank aims to leverage its strengths to drive growth and create value for stakeholders.
Absa Bank Kenya’s performance reflects its ability to adapt to a challenging macroeconomic environment while maintaining a strong financial position. The bank’s diversification strategy and investments in digital finance and bancassurance have contributed to its growth.
Absa Share Performance at the NSE
The lender’s share performance at the Nairobi Securities Exchange(NSE) show a 38% gain since the year begun. The current share price is KSh 24.90 with a market capitalization of KSh 135 Billion.
The Counter has a 52-week high of KSh 26.25, the highest price a stock has reached over the past year. When a stock breaks above this level, it often sparks excitement, headlines, and investor activity.
The ABSA counter has also shown a beta of 0.35% indicating relative stability and less volatility compared to the market.
Absa Bank Kenya Plc is a subsidiary of South African based Absa Group Limited, listed on the JSE in South Africa. The Group is one of Africa’s largest diversified financial services provider with a presence in 12 countries across Africa.
