Absa Bank Kenya has reported a 3.6 percent growth in profit after tax for the three-month period ended March riding on cost cutting.
The subsidiary of South Africa-based Absa Group reported a net profit of Sh6.1 billion for the first quarter, up from Sh5.9 billion in a similar period a year earlier.
The lender rode on cuts on interest paid out to customers, loan loss provision and staff costs to buttress its profitability against a drop in interest and forex income.
The bank’s loan book shrunk 5.5 percent to Sh308 billion, resulting in a Sh2 billion drop in interest earned from customers to Sh11.4 billion.
Banks have been increasing their uptake of the less risky government securities as tough economic conditions have resulted in higher defaults from the private sector.
Absa increased its lending to the government to Sh144 billion by March 2025 from Sh85.7 billion a year earlier. This saw interest earned from government securities rise by Sh1 billion to Sh3.1 billion.
