Absa hikes dividend 150pc to Sh0.5 per share despite 10pc profit drop
The lender's half-year results for the six months ended June show that shareholders received Sh0.2 per share during a similar period last year.
Absa Group has announced a significant increase in its interim dividend payout, raising it by 150 percent to Sh0.5 per share. This decision was made despite a 10 percent drop in net profit for the half-year period ending June 2026. Shareholders will receive Sh0.2 per share for the same period last year.
The bank's Board of Directors approved the higher dividend during its latest meeting. The interim dividend of KSh0.5 per ordinary share will be paid on or around October 15, 2026, to shareholders as of September 18, 2026. Absa's performance in the first half of 2026 demonstrated disciplined investment and prudent risk management, with operating expenses remaining well contained at KES12.1 billion, up 6 percent year-on-year, according to the bank's statement.
The bank reported that impairment charges increased by 4 percent to Sh3.1 billion, reflecting prudent credit risk management and an improving portfolio quality. Absa's customer loans and advances grew by 8 percent to Sh329.9 billion, while total assets reached Sh558.1 billion during the period. Total deposits also rose by 5 percent to Sh380.7 billion.
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