NAIROBI, Kenya – Absa Bank Kenya has reported a profit after tax of Ksh.14.7 billion for the third quarter ending September 30, 2024, marking a 20% increase compared to the same period last year.
This impressive performance underscores the bank’s resilience and strategic focus across its business segments.
Key growth metrics include a 16% rise in total revenues to Ksh.46.8 billion, driven by a funded income of Ksh.34.5 billion and a 13% growth in non-funded income to Ksh.12.2 billion.
The gains highlight the bank’s ability to diversify its revenue streams, including growth in asset management and brokerage services.
The bank’s loan portfolio hit Ksh.311 billion, supported by Ksh.94 billion in new gross lending to critical sectors of the economy.
Customer deposits increased slightly to Ksh.352 billion, reflecting sustained trust from its clientele.
Speaking on the results, Abdi Mohamed, Absa Kenya’s Managing Director and CEO, attributed the growth to disciplined execution of the bank’s strategy, emphasizing innovation, financial inclusion, and sustainable practices.
“Our strategic focus on becoming a holistic, modern financial services provider is bearing fruit. Through digital finance, SME-centric products like Wezesha, and innovative offerings such as Sharia-compliant La-Riba solutions, we continue to meet the evolving needs of our customers,” said Mohamed.
During the review period, the bank expanded its agency network to over 3,000 locations and intensified its support for small enterprises and women-led businesses, benefiting over 14,000 entrepreneurs.
To further bolster its service delivery, Absa committed Ksh.3 billion to a technology upgrade aimed at strengthening its core banking systems.
Sustainability remained central to the bank’s strategy, highlighted by the establishment of the Absa Kenya Foundation (AKF).
The foundation focuses on enterprise development, education, natural resource management, and health initiatives to amplify community impact.
Despite a 13.7% increase in operating costs to Ksh.17.7 billion, the bank improved its cost-to-income ratio to 37.8%.
It also maintained robust capital and liquidity ratios, with a capital adequacy ratio of 19.4% and a liquidity reserve of 38.1%, both exceeding regulatory requirements.
However, impairment charges rose by 19% to Ksh.8 billion, reflecting cautious risk management in a challenging economic environment.
Absa Kenya remains optimistic about sustaining growth through strategic partnerships, enhanced customer solutions, and prudent management.
“This strong outcome reflects our dedication to delivering value to our customers and stakeholders while addressing diverse needs,” Mohamed said.
This impressive performance underscores the bank’s resilience and strategic focus across its business segments.
Key growth metrics include a 16% rise in total revenues to Ksh.46.8 billion, driven by a funded income of Ksh.34.5 billion and a 13% growth in non-funded income to Ksh.12.2 billion.
The gains highlight the bank’s ability to diversify its revenue streams, including growth in asset management and brokerage services.
The bank’s loan portfolio hit Ksh.311 billion, supported by Ksh.94 billion in new gross lending to critical sectors of the economy.
Customer deposits increased slightly to Ksh.352 billion, reflecting sustained trust from its clientele.
Speaking on the results, Abdi Mohamed, Absa Kenya’s Managing Director and CEO, attributed the growth to disciplined execution of the bank’s strategy, emphasizing innovation, financial inclusion, and sustainable practices.
“Our strategic focus on becoming a holistic, modern financial services provider is bearing fruit. Through digital finance, SME-centric products like Wezesha, and innovative offerings such as Sharia-compliant La-Riba solutions, we continue to meet the evolving needs of our customers,” said Mohamed.
During the review period, the bank expanded its agency network to over 3,000 locations and intensified its support for small enterprises and women-led businesses, benefiting over 14,000 entrepreneurs.
To further bolster its service delivery, Absa committed Ksh.3 billion to a technology upgrade aimed at strengthening its core banking systems.
Sustainability remained central to the bank’s strategy, highlighted by the establishment of the Absa Kenya Foundation (AKF).
The foundation focuses on enterprise development, education, natural resource management, and health initiatives to amplify community impact.
Despite a 13.7% increase in operating costs to Ksh.17.7 billion, the bank improved its cost-to-income ratio to 37.8%.
It also maintained robust capital and liquidity ratios, with a capital adequacy ratio of 19.4% and a liquidity reserve of 38.1%, both exceeding regulatory requirements.
However, impairment charges rose by 19% to Ksh.8 billion, reflecting cautious risk management in a challenging economic environment.
Absa Kenya remains optimistic about sustaining growth through strategic partnerships, enhanced customer solutions, and prudent management.
“This strong outcome reflects our dedication to delivering value to our customers and stakeholders while addressing diverse needs,” Mohamed said.
