Absa Bank Kenya PLC has reported a Profit after Tax of KES 14.6 billion for the period ended December 31, 2022, a 34% growth compared to a similar period last year.
The impressive results have been realized on the back of double-digit revenue growth powered by accelerated lending, especially to Small and Medium Enterprises (SMEs).
The period saw a 21% increase in customer loans, bringing the total to KES 284 billion.
Additionally, deposits also experienced a 13% rise, reaching KES 304 billion, which further contributed to the growth of the balance sheet.
Driven by a 28 per cent increase in net interest income to KES 32.3 billion, the total revenues surged by 25 per cent to KES 45.9 billion.
The growth was fueled by the increased lending to Small and Medium Sized Enterprises (SMEs) and vital economic sectors like manufacturing, energy, and agriculture.
Yusuf Omari, the interim managing director of Absa Kenya, highlighted that the diversification strategy has proven successful as non-funded income rose by 17 per cent to KES 13.7 billion.
He added that the asset management business, foreign exchange income, bancassurance, and card operations contributed significantly to this growth.
We are pleased with this outstanding financial performance, which was achieved in the face of an unprecedented and complex operating environment characterised by significant events such as the General Elections, drought, and persistent Covid-19 pandemic impacts.
Yusuf Omari – Interim Managing Director of Absa Bank Kenya
During the assessed fiscal year, there was significant progress made in implementing its innovation and digital transformation strategy, as over 92 per cent of transactions occurred through channels other than physical branches.
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.
Yusuf Omari – Interim Managing Director of Absa Kenya
Consequently, Absa bank Kenya has announced a complete dividend of KES 1.35 per share, representing a 23 per cent rise from the previous year and resulting in a total dividend distribution of KES 7.3 billion.
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