Absa Bank Kenya PLC has posted Kshs 10.7 billion in first half net profit, driven by a 16% increase in income. The profit represents a 29% leap on the Kshs 8.3 billion the lender posted during a similar period last year.
Absa Bank Kenya marginally timed its loans and advances to customers from Kshs 317.9 billion to Kshs 316.4 billion. This is after gross non-performing loans rose to Kshs 39.4 billion, up from Kshs 32.2 billion as at June 2023.
This prompted the lender to marginally increase the loan loss provision from Kshs 5.16 billion to 5.17 billion.
Absa Bank Kenya booked Kshs 27.4 billion in interest income from loans and advances to customers. This represents a 35.6% increase on 20.2 billion that it made during a similar period last year.
In addition, the lender earned Kshs 4.3 billion in interest income from government securities, down from Kshs 4.7 billion shillings it made during a similar period last year. This was after reducing the stock of investments in government securities from Kshs 80.7 billion to Kshs 62.7 billion shillings.
In addition, non-interest income increased from Kshs 8.0 billion to Kshs 8.8 billion.
“This commendable outcome, realized amidst a challenging macro-economic environment, underscores the efficacy of the Bank’s growth strategy and its unwavering dedication to providing relevant financial solutions that address the diverse needs of individuals, enterprises, and communities because we want to continue being a critical enabler to their growth stories,” said Absa Bank Kenya PLC, Managing Director, Abdi Mohamed.
Just as was the case last year, Absa Bank Kenya has declared 20 cents per share in interim dividend pay-out to shareholders.
During the period, total revenue rose 16% to Kshs. 31.8 billion, underpinned by growth in funded income at Kshs. 23 billion.
“Our focus is on diversifying revenue streams with scalable payment solutions, enhancing customer experience, and advancing financial inclusion through digital finance, digital savings, affordable housing, and SME offerings like Wezesha and Microinsurance,” said Mohamed.
He says the improved financial performance reflects prudence in strategy execution and the resilience of the Bank’s customers.
Going forward, “we are well positioned for growth, leveraging our strategic prudence, enhanced digital capabilities, and the dedication of our staff to support our customers and stakeholders. We remain committed to driving meaningful transformation in our communities and making a greater contribution towards economic progress in the country,” Mohamed said.
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