Absa Bank Kenya reported a profit of Ksh 6.3 billion for the half-year ended June 31, 2022, compared to Ksh 5.57 billion for 2021.
Yusuf Omari, Chief Financial Officer, Absa Kenya, termed the surge in profit as a “double-digit growth” accelerated revenue and balance sheet.
“The average yield has gone up by about a hundred basis points, meaning revenue has picked up in line with the yields. We have also seen quite a vibrant business environment, and our balance sheet has continued to pick up on loans to the private sector,” Barclays Chief Finance officer Yusuf Omari said.
The improved performance was driven by accelerated lending as the economy continued to recover from the negative impact of the Covid-19 pandemic. As a result, the Bank registered a 20% growth in net interest income, mainly driven by asset growth across all segments.
“We are pleased with the first half results. It has been a difficult period from a macroeconomic environment. . It also validates the relevance of our brand to our customers’ needs and demonstrates the role we continue to play in enabling our customers to participate rightfully in the economic development of our nation,” Absa Bank Kenya PLC Managing Director Jeremy Awori said.
“We remain cognizant of the challenges and opportunities presented by our operating environment, which is characterised by rising inflation due to high fuel and food prices, geopolitical instabilities which are negatively impacting the local economy, as well as the government transition process that is currently underway,” he added said.
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In addition, Absa Bank chief strategy officer Moses Muthui disclosed that as they conclude the last 5-years of strategy in 2022, they are delivering on all their strategic commitments as of H1 2022. For instance, he cited growth in revenue being above the industry growth rate at 17 per cent compared to 10 per cent as at Q2’2022.
“We are in the process of developing a refreshed strategy for the period 2023 – 2028,” he said.
The bank has recommended an interim dividend of Ksh 0.20 cents per share to the shareholders.
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