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Absa Bank Kenya has reported a profit after tax of Sh5.3 billion for the first quarter ending March 2026, supported by growth in customer deposits and an expanded balance sheet despite a difficult economic climate.
The bank’s total assets rose by 10 percent to Sh571.3 billion during the period, while customer deposits increased by 8 percent to Sh399.1 billion.
Customer loans and advances stood at Sh303.8 billion as the lender maintained cautious lending amid slower private sector credit uptake and lower interest rates.
Profit before tax reached Sh7.5 billion, with return on equity standing at 20.3 percent, highlighting the bank’s strong profitability and financial position.
Absa also reported a capital adequacy ratio of 21 percent, above the required regulatory threshold, while liquidity reserves closed at 53.2 percent.
Speaking during the announcement of the results, Abdi Mohamed said the bank remained focused on supporting customers through ongoing economic challenges.
“It has been a demanding period for our customers and the broader economy, but our focus has been on standing alongside those we serve,” he said.
He added that the bank remains committed to balancing customer support with maintaining long-term business strength.
During the quarter, total revenue stood at Sh14.7 billion, with net interest income contributing Sh10.4 billion and non-interest income bringing in Sh4.3 billion.
According to the lender, the performance was boosted by prudent cost management and diversified income streams, with subsidiary earnings rising by 25 percent year-on-year.
The results come as banks continue adjusting to declining interest rates, concerns over asset quality, and slower economic activity across several sectors.
Absa said it continued expanding its retail, SME, and corporate banking services during the quarter.
In retail banking, the lender strengthened its wealth management products targeting high-net-worth individuals. In the SME sector, it expanded its “WEZESHA” value-chain financing programme alongside digital payment solutions designed to improve access to working capital.
The bank also recorded growth in corporate banking, particularly in mergers and acquisitions advisory services and foreign exchange solutions.
Outside its core banking business, Absa said it continued supporting sustainability and community initiatives through the Absa Kenya Foundation, including programmes supporting women- and youth-led enterprises in the circular economy.
The lender added that it plans to continue investing in digital banking platforms, customer experience, and strategic partnerships as competition in the banking industry continues to grow.
