Absa Bank Kenya PLC says it recorded a 34% year-over-year increase in its profit after tax to Kshs. 5.9 billion for the period ending March 31, 2024.
Highlights
- Profit after tax jumped 34% to Kshs. 5.9 billion.
- Loans and advances grew 5% to Kshs. 327 billion, demonstrating the Bank’s commitment to supporting customer growth.
- Customer deposits increased by 14% to Kshs. 355 billion, strengthening the Bank’s balance sheet.
- Total revenues rose 19% to Kshs. 16.5 billion, driven by revenue diversification strategies and rising customer assets.
- Interest income saw a significant increase of 22% to Kshs. 11.4 billion.
- Non-funded income grew by 13% to Kshs. 5.1 billion.
- The Bank’s cost-to-income ratio improved to 33.9% due to efficiency efforts.
- The capital adequacy ratio remains strong at 17.9%, exceeding the regulatory requirement of 14.5%. The liquidity reserve position is also healthy at 33.5%, surpassing the regulatory limit of 20%.
Strategic Execution Drives Growth
Absa Bank Kenya attributes its success to the effective execution of its recently launched strategy. This strategy prioritizes transforming the Bank into a modern consumer financial services company.
These efforts have resulted in the Bank recording the fastest customer growth in the first quarter of the year. The lender has also solidified its position as a leader in Business Banking, focusing on key sectors like agriculture, trade, and manufacturing. Additionally, the Bank maintains its position as a prominent corporate and investment banking partner in the region.
Absa Bank Kenya PLC remains optimistic about the future. Abdi Mohamed, Absa Bank Kenya PLC Managing Director and CEO says, “We are pleased with the resilient financial outcomes attained in the quarter under review.”
“This demonstrates that we are sustaining strong business performance anchored on our new strategy while aligning with the needs of individuals, businesses, and society… We remain cognizant of the challenges in our operating environment but also mindful of the numerous opportunities that await us. As we navigate these uncertain times, we are confident that the Bank’s resilience, agility, and unwavering commitment to excellence will guide us toward long-term development and prosperity.”
