Absa Bank Kenya PLC posted a normalised profit after tax for the period ended December 2020 of Kes 6.5 billion a 23% decline compared to the period in 2019. The group attributed the decline to pandemic related provisions.
The normalised financial performance excludes an exceptional cost of Kes 3.2 billion which went towards the recently concluded brand transition to Absa and restructuring programmes.
Loan impairments recorded a two-fold growth to kes 208 billion as the lender’s customers struggled to keep up with loan repayments due to the economic disruptions caused by Covid-19.
In a virtual briefing with analysts, Absa’s management said they took decisive action to increase provisions in order to the best position for future potential credit losses.
“2020 was a tough year and as is expected, the hardships of the banking sector have continued to follow those of the customers and the broader economy. As a result, many sectors have slowed down and peoples’ livelihoods have been greatly disrupted,” Absa Kenya Managing Director Jeremy Awori at the briefing.