As mobile banking and mobile loans continue to gain prominence in Kenya, the newly rebranded Absa Bank Kenya gave Kenyans approximately 20 billion shillings in loans through their Timiza mobile app as of December 2019.
According to the lender, as of December 2019, a total of 3.2 million loans had been issued to Kenyans with the numbers expected to increase given the new products under the new brand.
“We are driving financial access with Timiza and, in the process, bringing possibilities to life for the Kenyan people,” said Absa Bank in a statement.
Absa Bank Kenya says that the Timiza product now has almost 4 million customers and “believers in or purpose and brand in 2 years of launch.”
On Tuesday, March 24, 2020, Absa Bank Kenya also released its 2019 financial results registering a 15 percent growth as a result of a 7 percent growth in total income.
“We have reported a normalized profit after tax of 8.5 billion shillings for the period ended 31 December 2019, a growth of 15 percent compared to a similar period last year. Normalized performance excludes exceptional items of 1.5 billion shillings, which relates to costs incurred in the rebranding exercise into Absa,” said the lender.
Total assets grew by 15 percent year on year driven by growth in customer loans, government securities as well as other liquid assets.
Net customer loans were up 10 percent to close at Kshs195 billion driven by key focus products namely; general lending, asset finance, mortgage and scheme loans that recorded strong growth year on year.
Customer deposits grew by 15 percent to 238 billion shillings with transactional accounts making up 70 percent of the total deposits.
Absa Bank also says that through its mentorship programs, it has been able to empower thousands of Kenyan youth, making them ready for the competitive job market. “We are investing in the future of the youth through skills development via our Ready To Work Program.”
Through the program, 160,000 youth in Kenya have benefitted, 574 scholarships provided through Absa Bank’s 161 million shillings fund with 70,000 smartcards set to be issued to university students.