Absa Bank Kenya PLC has reported a net profit of Kshs 4.5 billion for the first three months of 2023, representing a 51% growth in comparison to a similar period last year.
The profit growth was supported by significant balance sheet growth, with the Bank’s total assets crossing the half-trillion mark, rising by 17% to reach Kshs 515 billion.
Loans and advances increased 28% to Kshs 310 billion with majority of this lending advanced to sectors driving economic growth and transformation, particularly Small and Medium Enterprises (SMEs).
Customer deposits rose 15% to Kshs 311 billion, supporting further balance sheet expansion. This performance underlines the critical role the Bank continues to play as a key partner for growth for its customers and the broader economy.
For the period, the Bank’s revenue increased 40% to KShs. 13.9 billion, with net interest income increasing 36% to Kshs 9.4 billion.
The Bank’s diversification and multi-year transformative investments are yielding the desired results, with non-funded income growing 49% to Kshs 4.5 billion.
Highlights:
- Total revenue up 40% to Kshs.13.9 billion
- Non-interest income up 49% to Kshs 4.5 billion
- Net interest income up 36% to Kshs.9.4 billion
- Total assets up 17% to Kshs.514.6 billion
- Customer assets grew by 28% to Kshs. 309.9 billion
- Customer deposits grew by 15% to Kshs.310.8 billion
- Profit before tax increased by 49% to Kshs.6.4 billion
Absa Bank Kenya PLC Managing Director, Abdi Mohamed, said: “We are pleased with this impressive financial performance which was delivered against a challenging business environment.
“It is a demonstration of the resilience of our business and serves as a good indication that our new strategy focused on building a bigger, better, and more inclusive financial institution that consistently meets the needs of its customers and creates shared value for all of its stakeholders is working.”
The Bank’s statutory operating expenses increased by 14% as we continued to execute our transformational and people investments.
“Impairment increased by 103% compared to the same period last year in line with our principles of prudence in risk management given balance sheet growth and tough operating environment.
“Despite this increase, our portfolio quality remains better than the industry. In addition, we have ensured adequate coverage ratio which is also better than the industry levels to ensure future credit losses are minimized and better managed.
“Our capital position remains strong, allowing us to support our customers while responding appropriately to the external environment.
“We thank our customers, colleagues, shareholders and all our stakeholders for their support as we continue supporting the growth and development of our great nation,” Mohamed said.