Nairobi, May 28 -- Absa Bank Kenya reported a 13.8 percent decline in net profit in the first quarter ended March as falling interest rates and reduced lending to customers resulted in reduced interest income.

The bank's net income in the review period stood at Sh5.3 billion, down from Sh6.1 billion the year before.

Total interest income fell 10.1 percent to Sh13.5 billion. The lender also slashed interest paid on deposits by 17 percent to Sh3.1 billion, helping to mitigate the impact of lower interest income on its lending margins.

"While market conditions remained dynamic, we delivered a profit after tax of Sh5.3 billion and a return on equity of 20.3 percent," Absa said in a statement.

"Revenue [Total operating income] closed at Sh...