Absa Bank Kenya has posted a 12.2 per cent growth in full year net profit to Sh. 16.4 billion.
This profit has been realized after the bank recorded an increase in operating income which grew by 18.7 per cent to Sh. 54.5 billion from Sh. 45.9 billion in the previous full year. Non-interest income has grown from Sh. 8.68 billion in 2014 to Sh. 14.53 billion in 2023.
The bank’s profitability has almost doubled from Sh. 8.39 billion in 2014 to Sh. 16.37 billion in 2023.
“This impressive performance truly reflects the growth and resilience of our customers who have continued to give us a chance to contribute to their growth story as their financial partner. It is also a demonstration that our strategy is effective in creating value for all our stakeholders while delivering long-term growth in a dynamic operating environment,” said managing director and chief executive officer Abdu Mohamed.
“With 2023 being the first year of implementation of our five-year strategy, this performance gives us a strong launch pad from which we will execute our set priorities.”
During the year under review, Absa Bank Kenya’s total assets crossed the half-trillion mark, reaching Sh. 519.80 billion.
Following this profit growth, Absa Bank Kenya has announced that it will pay out an increased dividend of Sh. 1.55 per share from the Sh. 1.35 per share dividend that was paid out the previous year.
This will represent a 15 per cent increase from last year, bringing the total dividend payout to Sh. 8.42 billion. At the same time, the bank’s shareholders’ funds have shown a steadily increasing trend over the past 10 years from Sh. 38.19 billion in 2014 to Sh. 69.20 billion in 2023.
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On return on equity in 2023, Absa Bank Kenya achieved a peak return of 23.7 per cent, surpassing the industry average by a significant margin.
Absa’s loan book in the period expanded by 18.4 per cent to Sh. 335.7 billion from Sh. 283.5 billion, while customer deposits edged upward by 19.4 per cent to Sh. 362.7 billion.
“We see continuous momentum in our revenues which crossed the Sh50 billion mark for the first time. Our Non-Performing Loans ratio is still in the single digits and well below the industry’s average despite the uptick in non-performing loans,” said Mr. Mohammed.