Absa Bank Kenya has announced its financial results for the first half of 2023 with revenue surging by an impressive 31%, reaching Kshs.27.4 billion.
During the reviewed period, Absa Bank experienced substantial growth in customer assets, which rose by 22% to Kshs.318 billion. This was complemented by an 18% increase in customer deposits, amounting to Kshs. 333 billion. The bank recorded a notable 26% surge in non-funded income.
Absa Bank’s profit after tax rose by 32% year-on-year to Kshs. 8.3 billion as return-on-equity surged by 26%, a sign of its enhanced profitability relative to shareholders’ investments.
The bank’s total assets increased by 13.1% to Kshs. 503.7 Billion mainly supported by 21.6% expansion in loans and advances to Kshs. 317.9Billion. The lender’sholdings of Government securities declined 3.9% to Kshs .116 Billion from Kshs. 120.8 Billion as part of the bank’s bonds matured and were reddemed to pay out dividends.
The Board of Directors of Absa Bank Kenya PLC declared an interim dividend of Kshs.0.20 per ordinary share of the Company. This dividend will be disbursed on or about Thursday, October 12, 2023. To be eligible for this dividend distribution, shareholders must be registered as of the close of business on Thursday, September 21, 2023.
Absa Bank Kenya PLC Managing Director, Abdi Mohamed, said “In the face of a complex business environment, we are proud of the role we continue to play as an active force for good for our customers and the economy by ensuring continued access to finance, as evidenced by the growing balance sheet in the period under review.”
Going forward, the lender’s Chief Strategy Officer Moses Muthui said Absa will focus on the Small and Medium Enterprises (SMEs), corporate banking, digital investment and sustainability to drive more growth.
“We are upgrading our mobile banking platform, Timiza to offer long term loans, the plan is to give it more power through making it a stand-alone product,” he said.
He noted that 30 per cent of the value of loans come from Timiza, which currently offers short-term credit.
ALSO READ; Absa Bank Kenya Q1 2023 Net Profit Up 51% to KES 4.5 billion, Assets Cross half-trillion mark
