Earnings UpdateABSA Bank Kenya Reports 846% Rise in Profit to Kes 5.6 Billion

Absa Bank Kenya Plc has reported its financial results for the first six month period ended 30th June 2021, outperforming its peers to post 846% growth in Profit After Tax to Kes 5.6 billion compared to Kes 0.6 Billion in the same in 2020.

The impressive performance was mainly driven by growth in interest income, particularly in the small and medium enterprises segment, as the Bank accelerated its efforts in supporting businesses to recover from the effects of the pandemic and reposition for growth.

Absa Bank Kenya’s total income grew by 6% to Kes 17.8 billion, mainly attributed to net interest income growth, which was up 6% year on year on the back of increased lending. Customer assets increased by 8% to Kes 219 billion, with total assets at Kes 398 billion. The 6% growth in customer deposits was attributed to transactional accounts, contributing 68% of the total deposits.

Absa Kenya CEO and Managing Director Jeremy Awori noted that the strong performance reflects an improving macro-economic environment, better quality of credit and resilience of the country’s economy.

The bank said it had offered loan relief and restructured, totalling over Kes 62 billion to about 60,000 customers, equivalent to 30% of its loan portfolio with Kes 103 billion in gross lending during that period.

Non- funded income driven by the bank’s innovations and digitization rose by 6%, and costs were well managed, dropping by 3% year on year.

Net customer loans grew by 8% to close at Kes 219 billion, driven by key focus products; general lending, trade loans, mortgage and scheme loans that recorded strong growth year on year.

The bank’s return on equity increased to 22%, supported by the strong growth in profits, improved efficiency, and well-managed capital.

Absa Outlook

In the period under review, the bank continued executing its growth strategy by introducing some new exciting propositions, including the Absa Asset Management Limited, Absa SHE Business account, digital loan top-ups where customers can top up existing loans at the touch of a button.

The bank recently introduced WhatsApp banking as part of its commitment to invest over Kes1.6 billion in technology and innovation this year towards enhancing customer experience.

Read also; Absa Posts 28% Growth in Net Earnings at Kes 2.4 Billion.

 

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