Absa Kenya’s net profit in the first nine months of 2020 fell by 65% to KSh 1.9 billion, from KSh5.6 billion reported in the same period in 2019. A sharp rise in loan loss provisions due to the heightened credit risk during this pandemic season resulted in the huge drop in net profit. Loan loss provisions jumped to KSh7.6 billion from KSh3.1 billion reported in Q3 2019, a 146% increase.
The company says its offered loan relief to some of its customers and restructured loans amounting to KSh63 billion, equivalent to 30% of the bank’s net loans and advances to customers.
The bank’s net interest income increased by 1.6% to KSh17.1 billion while non-interest income grew by 4.5% to KSh 8.3 billion. Total non-performing loans jumped to KSh14.3 billion at the end of September this year, from KSh11 billion in September 2019, a 30% increase.
Absa’s customer deposits increased by 4.7% to KSh246.6 billion while its loans and advances to customers increased by 7.8% to KSh209.2 billion.
The bank’s total assets expanded by 7.8% to KSh387.9 billion and its total liabilities increased by8.7% to KSh343.2 billion.