Absa Bank Kenya PLC has reported a profit after tax of Kshs. 10.7 billion for the half-year ending 30 June 2024, marking a 29% increase from the same period last year. This growth is driven by strong revenue performance across all business segments.
Performance highlights:
- Total revenue up 16% to Kshs.31.8 billion
- Net interest income up 20% to Kshs.23.0 billion
- Non-interest income up 8% to Kshs.8.8 billion
- Customer deposits grew by 6% to Kshs.353.3 billion
- Interim dividend of Kshs 0.20 per share
During this period, the bank continued its commitment to empowering its customers by providing access to finance and non-financial support. Loans and advances reached Kshs. 316.3 billion, with Kshs. 64 billion in new lending directed towards key economic sectors.
Total revenues rose by 16% to Kshs. 31.8 billion, with funded income at Kshs. 23 billion. Non-funded income also grew by 8.4%, highlighting the strength of both legacy revenue streams and new income sources. Customer deposits increased by 6% to Kshs. 353.3 billion, indicating continued trust in Absa as a primary financial partner.
Abdi Mohamed, Managing Director and CEO of Absa Bank Kenya PLC, attributed the improved financial performance to effective strategy execution and customer resilience, despite a challenging macroeconomic environment.
In response to economic challenges, the bank restructured Kshs. 1.4 billion in loans for retail customers and provided non-financial skills to over 14,000 entrepreneurs, including MSMEs and Women in Business. To enhance customer value, the bank relaunched its La-Riba Shariah-compliant solutions, strengthened the Wezesha Stock platform for SMEs, and invested Kshs. 3 billion in technology upgrades.
Absa also advanced Kshs. 16 billion in sustainable finance, including climate finance, and Kshs. 12 billion through the Timiza platform for start-ups and youth. The bank’s community efforts impacted over 100,000 students, with 67 computer labs rolled out across schools.
The bank’s operating expenses rose by 12%, improving the cost-to-income ratio to 35.8%. Impairment increased slightly to Kshs. 5.2 billion, reflecting prudent risk management. Despite this, the bank’s portfolio quality and coverage ratios remain better than industry standards.
Absa’s capital adequacy ratio stood at 18.6%, and its liquidity reserve position at 35.2%, both comfortably above regulatory requirements.
Looking ahead, Mr. Mohamed emphasized the bank’s readiness for future growth, supported by strategic prudence, enhanced digital capabilities, and a commitment to economic progress and community transformation.
