Absa Bank Kenya PLC has reported net earnings of Sh8.3 billion for the half year ended 30 June 2023, representing a 32 percent increase compared to the same period last year.
The growth in earnings was supported by sustained double-digit revenue growth across the bank’s key revenue streams.
”The impressive six-month results were underscored by a sustained quality income mix and a strong and high quality balance-sheet, with the Bank’s asset base maintaining upward momentum and remaining above the half-trillion mark, rising 13% to Kshs.504 billion.” said Absa Bank Kenya PLC Managing Director, Abdi Mohamed.
The bank experienced a 31 percent jump in revenue, to Sh27.4 billion from Sh20.9 billion in a corresponding period last year. This was boosted by a 33 percent rise in net interest income which hit Sh19.2 billion.
Non-funded income increased by 26 percent to Sh8.1 billion, owing to positive outcomes from the ongoing revenue diversification.
Equity Bank Group Half Year Net Profit Hits Sh. 26.3 Billion
Specifically, the Bank registered strong growth in FX income, fees and commissions, Asset Management, Bancassurance and stock brokerage, among others.
During the review period, customer deposits increased by 18 percent to Sh333 billion, allowing for further balance sheet expansion. Operating expenses on the other hand increased by 15 percent on account of new hires aimed at driving business growth.
Following the improved performance, the bank’s Board approved an interim dividend payment of Sh0.20 per share, equivalent to a total payout of Sh1.086 billion, for the six-month period.
This dividend will be disbursed on or about Thursday, October 12, 2023. To be eligible for this dividend distribution, shareholders must be registered as of the close of business on Thursday, September 21, 2023.
Co-op Bank half year net profit rises to Sh. 12.1 billion
The earnings of Kenyan banks have continued to grow strongly despite the challenging macro and micro economic environment. The lenders are benefitting from rising interest rates, making new loans and investments in government debt more lucrative now than before.
Equity Bank which was the first bank to release its half year results remains ahead of other banks on profitability. The bank’s after tax profits for the review period jumped 7.8 percent to Sh26.3 billion supported by higher income from lending and transactions.
Kenya Commercial Bank (KCB) which is the second largest bank by asset base reported a 20 percent decline in profits to Sh15.6 billion from Sh19.5 billion, weighed down by staff restructuring costs and a near tripling of provisioning for loan defaults.
NCBA’s profits rose 20 percent to Sh9.3 billion from 7.8 billion last year, while Co-op bank’s profits went up to Sh12.1 billion from Sh11.5 billion in a corresponding period last year.
