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Absa Bank’s Profits Hit Kshs 14.7 Billion In Q3

BY Soko Directory Team · November 19, 2024 09:11 am

KEY POINTS

Total revenues increased by 16%, totaling Kshs. 46.8 billion, bolstered by a funded income of Kshs. 34.5 billion. Additionally, non-funded income grew by 13%, amounting to Kshs. 12.2 billion. This remarkable growth in revenue highlights both the solidity of legacy revenue streams and the rapid expansion of new income sources, including asset management and brokerage. 

Absa Bank Kenya PLC has reported a profit after tax of Kshs. 14.7 billion for the third quarter ending September 30, 2024, reflecting a 20% increase compared to the same period last year. This growth highlights the bank’s solid performance across multiple business segments, underscoring the focus on delivering consistent value.

For the period, the Bank’s loans and advances reached Kshs. 311 billion, with new gross lending of Kshs. 94 billion directed towards critical sectors of the economy, reflecting Absa’s essential role in empowering Kenya’s growth story.

Total revenues increased by 16%, totaling Kshs. 46.8 billion, bolstered by a funded income of Kshs. 34.5 billion. Additionally, non-funded income grew by 13%, amounting to Kshs. 12.2 billion. This remarkable growth in revenue highlights both the solidity of legacy revenue streams and the rapid expansion of new income sources, including asset management and brokerage. Customer deposits increased slightly to Kshs. 352 billion, illustrating sustained confidence in Absa as a primary financial partner.

Speaking about the financial results, Abdi Mohamed, Managing Director and CEO of Absa Bank Kenya PLC, said the improved financial performance highlights the disciplined execution of strategic initiatives that reinforce Absa’s position as a trusted brand, committed to advancing a sustainable future.

“The Bank’s strategic objective remains firmly on track toward becoming a holistic, modern financial services provider, meeting the evolving needs of our customers through innovation and strategic partnerships. We continue to diversify our revenue sources by enhancing payment solutions, improving customer experiences, and promoting financial inclusion through digital finance, affordable housing, and SME-oriented products such as Wezesha and Microinsurance,” Mr. Mohamed stated.

In the review period, the Bank expanded its service touchpoints, increasing its agency network from 600 to over 3,000 locations. Additionally, Absa remains committed to empowering small enterprises and women-led businesses by offering vital non-financial solutions, positively impacting over 14,000 entrepreneurs in navigating the current economic landscape.

To further enhance customer value, Absa enhanced its La-Riba service to provide innovative Sharia-compliant solutions while reinforcing its Wezesha Stock platform for SMEs. Additionally, the Bank accelerated the ongoing implementation of a Kshs. 3 billion technology upgrade strategy to strengthen its core banking and back-office systems.

Moreover, the Bank has intensified its sustainability initiatives by establishing the Absa Kenya Foundation (AKF), which will amplify its positive community impact and sustainability commitments. The Foundation will prioritize four key areas: enterprise development, education and skills, natural resource management, and health and humanitarian relief.

Read Also: Absa Launches Own Foundation To Support Communities

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system. Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

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