Absa Bank Kenya PLC has reported a profit after tax of Sh5.9 billion for the period ended 31 March 2024, representing a 34 percent growth compared to the Sh4.5 billion reported in a similar period last year.
The strong performance was supported by the lender’s ongoing revenue diversification strategies, which are supported by new businesses such as bancassurance, asset management, Timiza, and stock brokerage, as well as rising customer assets.
Total revenues grew by 19 percent to Sh16.5 billion, while interest income grew by 22 percent to Kshs.11.4 billion. The bank further reported a 13 percent growth in non-funded income to Sh5.1 billion.
”Amidst a challenging operating context characterised by volatile rates and elevated inflation, the Bank grew its loans and advances by 5% to reach Kshs.327 billion, underscoring its broader mission to empower its customers’ growth stories,’’ the lender stated.
Customer deposits for the period rose by 14 percent to Kshs.355 billion, further propelling balance sheet momentum.
The Bank’s underlying costs during the review period grew by 11 percent driven by enhanced strategic investments in its human capital and digital transformation agenda.
However, cost-to-income ratio improved to 33.9 percent owing to the lender’s efficiency efforts.
Impairment increased marginally in the quarter compared to the same period last year, in keeping with the Bank’s prudence in risk management
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“We are pleased with the resilient financial outcomes attained in the quarter under review, which demonstrates that we are sustaining strong business performance anchored on our new strategy while aligning with the needs of individuals, businesses, and society and living our purpose of empowering Africa’s tomorrow together…one story at a time,’’ Abdi Mohamed, Absa Bank Kenya PLC Managing Director and CEO remarked.
The quarter under review has seen the Bank accelerate the execution of its refreshed strategy unveiled last year.
Under this strategy, a key priority is to transform Absa into a modern consumer financial services company.
Through the rollout of new products, technologies, and relationship models, the Bank has recorded the fastest growth in customer numbers in the first quarter of the year.
Absa has also continued to entrench itself as a market leader in Business Banking, undertaking significant growth campaigns focused on critical economic sectors such as agriculture, trade, and manufacturing.
“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,” added Mr Mohamed.
