Absa Bank Kenya Plc · NSEKE:ABSA
Absa Bank Kenya — H1 2025 Earnings Presentation
30 slides from Absa Bank Kenya's earnings presentation, Aug 12, 2025
Slide 1: Absa Bank Kenya PLC H1 2025 Results Announcement
Absa Bank Kenya PLC H1 2025 Results Announcement Tuesday 12th August, 2025
Slide 2: Agenda
H1 2025 Investor Briefing Agenda Financial Business Overview Guidance Strategic Outlook Performance 2
Slide 3: Business Overview
Your story matters Business Overview Abdi Mohamed Chief Executive Officer
Slide 4: Operating environment: Complex operating environment with addressable risks and opportunities
H1 2025 Investor Briefing Operating environment: Complex operating environment with addressable risks and opportunities In Summary GDP Growth remains resilient Average Inflation within CBK target range 5.5% 7.50% Tailwinds 5.2% 5.3% 4.7% - Resilient GDP growth 3.8% 4.2% 6.22 - Anchored inflation CBK
Slide 5: Our Footprint: Part of a leading Pan African financial institution
H1 2025 Investor Briefing Our Footprint: We are part of a leading Pan African financial institution with global reach Absa Group Absa Kenya 1,016 139,436 36, 779 87 10,548 +2,000 Branches POS Workforce Branches POS Employees 6,347 16 3 263 532 billion +3,000 Countries in Representative ATMs ATMs & C
Slide 6: Committed to our purpose: Empowering Africa's tomorrow
H1 2025 Investor Briefing We remain committed to our purpose “Empowering Africa’s tomorrow, together… one story at a time”: We are enabling customer aspirations while supporting them to navigate a complex operating environment Passing interest rates benefits to Empowering customers with customers Su
Slide 7: Our Strategy Overview: Third year of our five-year strategic cycle
H1 2025 Investor Briefing Our Strategy Overview: We are in the third year of our five-year strategic cycle 2023 - 2027 Our purpose: Empowering Africa’s tomorrow, together… one story at a time 3 Priorities 3 Enablers 1. A modern-day consumer business - A market 1. A digitally powered business – Shift
Slide 8: Strategy Execution: Notable achievements across key initiatives
H1 2025 Investor Briefing Strategy Execution: We're advancing our strategic agenda with notable achievements across key initiatives Key Achievements on our Strategy Execution in H1 2025 ✓ Double-digit growth in Consumer Banking revenue driven by NFI growth A ✓ Accelerated growth in Timiza lending an
Slide 9: Strategy Execution: Notable achievements across key initiatives
H1 2025 Investor Briefing Strategy Execution: We're advancing our strategic agenda with notable achievements across key initiatives Key Achievements on our Strategy Execution in H1 2025 Corporate Banking A ✓ +7% market share in growth in government payments in year-one Powerhouse ✓ Over 40 billion i
Slide 10: Investments in new business lines yielding positive benefits
H1 2025 Investor Briefing Our investments in new business lines are yielding positive benefits in diversifying and future-proofing our business. We are accelerating revenue growth and gaining market in our chosen strategic growth areas Growth in New Business Lines Contribution Accelerated growth in
Slide 11: A Digitally Powered Business: Investments in Payments
H1 2025 Investor Briefing A Digitally Powered Business: Our investments in Payments are driving our non-funded income growth and we are accelerating our growth in market share in chosen strategic battle-grounds Building our digital business We are gaining payments market share1 Building our payments
Slide 12: Absa Kenya Foundation: Force for Good
H1 2025 Investor Briefing Absa Kenya Foundation: Our ambition is to be a Force for Good for our people and community and our ongoing initiatives have proven effective in creating business value aligned with our shared-value principle and attracting new partners We have operationalized Absa Kenya Fou
Slide 13: Our Brand Positioning: Your Story Matters
H1 2025 Investor Briefing Our Brand Positioning: We have made significant progress in bringing our new brand promise “Your Story Matters” to life, further growing our brand equity Our efforts being recognized by wider Our Absa brand remains strong Your Story Matters stakeholders Key Awards Magical K
Slide 14: Our Leading Employee Value Proposition
H1 2025 Investor Briefing Our Leading Employee Value Proposition: We are building a home of talent and diversity while supporting our colleagues to achieve their career aspirations Certified top employer for 4 years A diversified workforce Empowering with non-financial support colleagues promoted en
Slide 15: In conclusion: Positive impact to customers and sustainable returns
H1 2025 Investor Briefing In conclusion: We are delivering positive impact to our customers and sustainable returns to our shareholders though continued diligent execution of our strategy 700bps drop in Absa Base Rate to 10% in order to drive benefits of the lower Customer Focus interest rate enviro
Slide 16: Financial Performance
Your story matters Financial Performance Yusuf Omari Chief Financial Officer
Slide 17: Bolstered balance sheet: Growth in strategic focus areas
H1 2025 Investor Briefing Bolstered balance sheet: Growth in our strategic focus areas and growing sectors of the economy Customer Deposits Customer Loans and Advances (In KES bn unless stated otherwise) Customer Deposits Assets Under Management (AUM) Customer Loans Total Assets Customers preferring
Slide 18: Momentum in revenue: A well diversified business
H1 2025 Investor Briefing Momentum in revenue: A well diversified business with investments in new revenue streams driving performance Revenue Diversification: NII and NFI Revenue Diversification by Business (In KES bn unless stated otherwise) (1%) Markets Co 31.8 0% ns 31.5 k5 um 11% Ban er 8.8 50%
Slide 19: Sustained improvement in efficiency
H1 2025 Investor Briefing Sustained improvement in efficiency: Strategic investments for future growth driving costs with sustained efficiency levels Total Cost growth from inflation and investments Improved Cost to Income Ratio (In KES mn unless stated otherwise) 47.9% 1% 45.7% 11,386 11,447 40.6%
Slide 20: Portfolio quality: Sustaining quality while maintaining robust balance sheet
H1 2025 Investor Briefing Portfolio quality: Sustaining quality while maintaining a robust balance sheet in a tough operating environment Impairment relative to growth Gross NPLs Ratio (In KES bn unless stated otherwise) 17.6% YoY -38% Industry1 13.0% 12.3% Impairment 5.2 (1.2) 3.2 Q1 2024 FY 2024 H
Slide 21: Resilient financial performance with improved profitability
H1 2025 Investor Briefing Resilient financial performance with improved profitability (In KES bn unless stated otherwise) P&L Indicators H1 2024 H1 2025 YoY Income 31.8 31.5 (1%) Net Interest Income 23.0 22.3 (3%) Non Funded Income 8.8 9.1 3% Operating Costs (11.4) (11.4) 1% Impairment (5.2) (3.2) (
Slide 22: Cost-income-ratio within our plans; Return-on-Equity above Cost of Equity
H1 2025 Investor Briefing Cost-income-ratio within our plans of sustained investments with profitability supporting Return-on- Equity above our Cost of Equity Indicators H1 2024 H1 2025 Commentary Cost to Income Ratio 35.0% 36.4% Talent and technology investments (140 bps) Loan Loss Rate 3.3% 2.1% D
Slide 23: Strong capital and liquidity ratios
H1 2025 Investor Briefing Strong capital and liquidity ratios: Providing capacity to support growth ambition and future capital distribution Core Capital Ratio Total Capital Ratio Liquidity Ratio 45.5% 20.5% 17.6% 18.6% 35.2% 14.8% Regulatory minimum 14.5% Regulatory Regulatory minimum minimum 10.5%
Slide 24: Guidance
Your story matters Guidance Yusuf Omari Chief Financial Officer
Slide 25: Guidance: Our strategy supports a positive medium-term guidance
H1 2025 Investor Briefing Guidance: Our strategy supports a positive medium-term guidance Principal Financial Metrics …Medium Term Target Growth Sustainable balance sheet growth Efficiency Cost-To-Income Ratio in low 40% Shareholder Returns Return on Equity above our Cost of Equity by 5% Better than
Slide 26: Recap
Your story matters Recap Abdi Mohamed Chief Executive Officer
Slide 27: Recap: The strategic roadmap ahead and the bank we are building
H1 2025 Investor Briefing Recap: The strategic roadmap ahead and the bank we are building H1 2025 performance highlights With clear execution focus areas for 2025 and beyond w, together Profit After ’s tomorro …on Scale new businesses – Digital Payments & Lending and Income ica es Tax Afr tor 01 Wea
Slide 28: For our shareholders: Proposed interim dividend of KES 0.2 per share
For our shareholders: The board has proposed the payment of an interim dividend of KES 0.2 per share towards delivering sustainable shareholders returns 13% The Board of Directors has approved the 15% 1.75 payment of an interim dividend for the 23% 1.55 year 2025 of KShs. 0.20 per ordinary share 1.3
Slide 29: Disclaimer
H1 2025 Investor Briefing Disclaimer Forward-looking statements Certain statements in this document are forward looking that relate to, among other things, the plans, objectives, goals, strategies, future operations and performance of Absa Bank Kenya PLC . Words such as “anticipates”, “estimates”, “
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