Absa Bank Kenya has announced a net profit of Sh20.9 billion for the full year 2024. This was an increase of 27.5 percent from the Sh16.4 billion net profit the lender had realized in the same period the previous 2023 financial year.

During the year under review, net interest income grew by 15.4 percent to stand at Sh46.2 billion. In the same period the previous year, net interest income had come in at Sh40 billion while non-funded income stood at Sh16.1 billion. At the same time, interest income from loans and advances had come in at Sh53.3 billion up from Sh44.2 billion.

Absa Bank Kenya also announced that its total assets had dipped slightly by 2.6 percent to end the year at Sh506.5 billion compared to the previous year’s Sh519.8 billion. Customer assets stood at Sh309 billion down from Sh336 billion representing a dip of 8 percent.

Operating costs increased slightly by 9 percent from Sh21.6 billion in the financial year 2023 to Sh23.5 billion in the financial year 2024.

Customer deposits stood at Sh367.1 billion which was an increase from the previous period’s Sh362.7 billion. Interest income from government securities came in at Sh9.4 billion up from 9.1 billion in the financial year 2023.

Absa Bank Kenya chief executive officer and managing director Abdi Mohamed announced that in the year under review, the bank had disbursed Sh180 billion worth of loans.

He attributed the improved performance to disciplined execution of strategic initiatives that support customer growth while reinforcing the Bank’s reputation as a trusted brand committed to advancing a sustainable future.

“Our customers are at the heart of our success, and these results show their ability to adapt and grow. We are committed to making Absa a modern and innovative bank that supports individuals, and businesses of all sizes. Our goal is to provide solutions that expand access to finance, drive economic progress, and improve the customer experience,” said Mr. Mohamed.

Gross non-performing loans for the year stood at Sh42.4 billion up from Sh35.2 billion in the previous year while net non-performing loans came in at Sh14.4 billion up from Sh12 billion. The bank’s loan loss provision was at Sh9.09 billion down from the previous year’s Sh9.2 billion.

The bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement. The Bank’s total capital adequacy ratio closed at 20.4 percent and liquidity reserve position at 42.5 percent against the regulatory limits of 14.5 percent and 20 percent, respectively.

Absa Bank Kenya awarded Top Employer for the fourth consecutive year

The bank’s 2024 performance resulted in an increase in return on equity to 24.5 percent, which supported capital distribution to shareholders. In fact, following the results, the bank announced that it will pay shareholders a final dividend at a rate of Sh1.55 per share to bring the total dividend payout for the financial year to Sh1.75 per share.

This dividend, which represents a 13 percent year-on-year growth, will be paid out on or about May 22, 2025. In the 2023 financial year, the bank had paid out a total dividend of Sh1.55 per share dividend.

“We are confident in sustaining our momentum while delivering meaningful impact for our customers, colleagues, and stakeholders. With a strong balance sheet and solid capital position, Absa is well-placed for the future,” said Mr. Mohamed.