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| Absa Bank Kenya CFO Yusuf Omari and MD & CEO Abdi Mohamed |
Absa Bank Kenya has posted a 29 per cent increase in its net profits to Sh10.7 billion for the half-year ending June 30, 2024, driven by strong revenue across all business segments.
During the six months, the Bank’s loans and advances reached Sh316.3 billion, with Sh64 billion in new gross lending directed to critical economic sectors.
Absa expanded its Environmental, Social, and Governance (ESG)-linked lending to Sh16 billion in sustainable finance and an additional Sh12 billion to start-ups and youth via the Timiza platform.
The review period saw total revenues rise by 16 per cent to Sh31.8 billion, fueled by a 14.4 per cent increase in funded income, which stood at Sh23 billion.
Non-funded income also saw an 8.4per cent growth, highlighting the strength of both traditional revenue streams and new income sources. Customer deposits grew by 6per cent to Sh353.3 billion, reflecting continued confidence in Absa.
Absa Managing Director and CEO, Abdi Mohamed, attributed the positive performance to strategic execution and the resilience of the Bank’s customers.
“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,” Mohamed stated.
With the Industry’s non-performing loans being on the rise the lender was forced to restructure approximately Sh1.4 billion in loans for retail customers.
This was after a 22.4 per cent increase in bad loans to Sh39.4 billion
The lenders net interest income rising by 29.3 percent to Sh32.6 billion. Operating expenses also increased by 8.3 percent, totaling Sh16.6 billion.
Provisions for bad loans saw a marginal rise of 0.3 percent, reaching Sh5.2 billion. Earnings per share (EPS) grew by 28.8 per cent to Sh1.97.
In light of these results, Absa Bank Kenya has declared an interim dividend of Sh0.20 per share.
by JACKTONE LAWI