Absa Bank Kenya PLC reported a better-than-expected net profit of Kshs 8.3 billion for the first half of 2023, representing a 32% increase compared to the same period last year.
This growth in earnings was driven by consistent double-digit revenue growth across the bank’s key revenue streams.
“The bank has a very strong momentum from revenue on balance sheet and customer growth over the last one to two years,” said Absa Bank Kenya PLC Managing Director, Abdi Mohamed.
“I think momentum is what we’re showing, which is strong revenue growth. Over this past strategic cycle CAGR of 9%.”
Absa Bank Kenya PLC reported a 31% increase in revenue to Kshs. 27.4 billion, driven by a 33% rise in net interest income to Kshs. 19.2 billion.
Additionally, non-funded income grew by 26% to Kshs. 8.1 billion, thanks to successful revenue diversification efforts.
The bank saw strong growth in FX income, fees and commissions, Asset Management, Bancassurance, and stock brokerage, among others.
Customer deposits increased by 18% over the six-month period to Kshs. 333 billion, enabling further expansion of the bank’s balance sheet.
Operating expenses for the review period rose by 15% due to new hires aimed at driving business growth.
— Absa Bank Kenya (@AbsaKenya) August 29, 2023
The Board of Directors of Absa Bank Kenya PLC announced an interim dividend of Kshs. 0.20 per ordinary share of the Company, which will be paid on or around Thursday, October 12, 2023.
Shareholders must be registered by the close of business on Thursday, September 21, 2023, to be eligible for this dividend payout.