Absa Bank Kenya’s Profit After Tax Up 34% To Ksh 14.6 Billion

Absa Bank Kenya PLC has reported a Profit after Tax of 14.6 billion shillings for the year ended 31 December 2022, representing a 34 percent growth in comparison to the previous year.

At the same time, the Bank has declared a total dividend of 1.35 shillings per share, a 23 percent increase from last year, bringing the total dividend payout to 7.3 billion shillings.

The commendable performance was driven by sustained double-digit growth across all business segments as the Bank scaled efforts to support key sectors of the economy, helping businesses and individuals to thrive.

As such, customer loans in the period grew by 21 percent to 284 billion shillings. Customer deposits rose by 13 percent to 304 billion shillings further supporting balance sheet growth.

Total revenues went up 25 percent to 45.9 billion shillings, driven by a 28 percent growth in net interest income of 32.3 billion shillings.

This was supported by increased lending, including to Small and Medium Sized Enterprises (SMEs) and to key economic sectors such as manufacturing, energy, and agriculture in recognition of the critical role they play in the advancement of our economy and job creation.

Additionally, our business diversification strategy has continued to pay off with non-funded income expanding by 17 percent to 13.7 billion shillings, reinforced by strong growth from our asset management business, foreign exchange income, bancassurance as well as card operations.

Speaking about the financial results, Absa Bank Kenya PLC Interim Managing Director Yusuf Omari said: “We are pleased with this outstanding financial performance, which was achieved in the face of an unprecedented and complex operating environment characterized by significant events such as the General Elections, drought, and persistent Covid-19 pandemic impacts.”

He added: “This set of results is a clear demonstration of our remarkable success in executing our Growth, Transformation, and Returns Strategy where we outperformed in all the core measures. We have significantly transformed our business and set a strong foundation to outperform in the next horizon of our strategy.”

The financial year under review has been momentous for the Bank in terms of scaling its innovation and digital transformation agenda, with more than 92 percent of all transactions now taking place outside of the branch. Among others, the year resulted in the launch of the Digital Onboarding platform – an instant online account opening option – as well as the nationwide rollout of Cash Deposit Machines.

Other transformation initiatives for the year included the expansion of the agency banking platform, with 668 Absa outlets commissioned. Absa also partnered with Visa to launch a domestic and cross-border remittance service.

Additionally, the Bank has continued to leverage critical partnerships to complement its four-pronged approach of access to markets, access to information, access to mentorship and coaching, and access to sustainable finance particularly targeted at Women in Business and SMEs customers, with more than 10,000 entrepreneurs engaged and empowered in the second half of the year through strategic County engagement tours.

“Having holistically transformed our business for relevance, I am confident that we are now at our best and well anchored for takeoff into our new horizon,” added Mr. Omari. “Looking ahead, 2023 represents yet another critical milestone that will set us on a path to build an even more relevant business that has meaning for those it is privileged to serve.”

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