Absa Bank’s Profits In Q1 Jump 22 Percent

Absa Bank Kenya PLC has today reported a Profit after Tax of Kshs.3billion for the quarter ending 31 March 2022, a growth of 22 percent compared to a similar period last year. 

The Bank reported that all its business units remained profitable, registering growth on key lines in the period. Total income grew by 12 percent to 9.9 billion shillings, primarily driven by higher net interest income which went up by 15 percent year on year, as a result of increased lending. Non-funded income grew by 6 percent driven by new innovations and continued digitization.

Announcing the results, Absa Bank Kenya Managing Director, Jeremy Awori, said the Bank’s strong performance reflects customers’ resilience in a challenging environment and points to improving macroeconomic conditions compared to the same period last year, as well as the successful execution of its five-year strategy which is focused on driving Growth, Transformation, and Returns.

“The year has started with great momentum and we are encouraged by this performance which is a reflection of the tenacity, determination, and resilience of our customers across our different business segments. Our business is on a growth trajectory and well-positioned to continue playing its rightful role in driving economic recovery from the slowdown experienced in the last two years,” Mr. Awori said.

For the period, total assets increased by 14 percent to 438 billion shillings with growth mainly driven by customer lending. Customer deposits increased by 5 percent to 270 billion shillings.

The Bank said its investment in new businesses is bearing fruit with bancassurance, asset management, and financial markets products contributing significantly to income growth in the period under review.

“Our capital position remains strong to continue supporting a robust balance sheet growth. We have also accelerated our investment towards enabling new growth areas, improving customer experience, and driving operational efficiency,” Mr. Awori said. 

In 2022, the Bank has committed a capital investment of Kshs. 2 billion in over 70 projects that are designed to increase operational efficiency and improve customer experience. 

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