Absa Bank Kenya’s profit after tax for the first quarter of this year has grown 34 per cent to KSh 5.9 billion from KSh 4.5 billion during the same period last year, supported by revenue diversification strategy.
- In a statement, the lender said investments in bancassurance, asset management, Timiza and stock brokerage led to a 19 per cent revenue growth to KSh 16.5 billion in quarter one.
- Customer deposits for the period rose by 14 per cent to KSh 355 billion, interest income grew by 22 per cent to KSh 11.4 billion, while non-funded income rose by 13 per cent to KSh 5.1 billion.
- The Bank’s total capital adequacy ratio closed at 17.9 per cent and liquidity reserve position at 33.5 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively. Loans and advances grew by 5 per cent to reach KSh 327 billion.
“We remain cognizant of the challenges in our operating environment but also mindful of the numerous opportunities that await us. As we navigate these uncertain times, we are confident that the Bank’s resilience, agility, and unwavering commitment to excellence will guide us toward long-term development and prosperity,” Abdi Mohamed, Absa Bank Kenya PLC Managing Director and CEO said.
“Our impairment increased marginally compared to the same period last year, despite this increase, portfolio quality remains better. We have ensured an adequate coverage ratio to ensure future credit losses are minimised and better managed,” he added
The Bank’s statutory operating expenses increased by 11 per cent as the Bank executed transformational and people investments. The Bank has leveraged these investments to accelerate revenue growth, which has led to a significant improvement in cost to income ratio to 33.9 per cent.
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