ABSA Bank Kenya PLC Profit After Tax (PAT) for the year ended June 2023 has jumped 32 per cent to Ksh8.3 billion helped by sustained double-digit revenue growth across key revenue streams.
This is from a Ksh5.9 billion net profit the tier-1 lender posted a similar period a year prior.
The growth has been underscored by a sustained quality income mix and a strong and high-quality balance sheet, with the bank’s asset base maintaining upward momentum and remaining above the half-trillion mark.
In the review period, Absa’s revenue increased by 31 per cent to Ksh27.4 billion, boosted by a 33 per cent rise in net interest income to Ksh19.2 billion.
Speaking during the release of the financial results for H1 2023, Absa Bank Kenya Managing Director (MD) Abdi Mohamed noted that the performance is a clear testament to the resilience and tenacity of Kenyans and Absa’s commitment to helping customers achieve their growth ambitions in an unpredictable business environment.
“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,” said Mohamed.
“The strong H1 performance gives us confidence that our strategy is delivering the desired results both for our customers and shareholders. With our transformation agenda, we are building a strong foundation upon which we will continue to modernize our business and accelerate our growth in market share,” added Absa Kenya MD.
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At the same time, non-funded income increased 26 per cent to Ksh8.1 billion, owing to positive outcomes from the lender’s ongoing revenue diversification.
Customer deposits in the review period increased by 18 per cent to Ksh333 billion, allowing for further balance sheet expansion.
For the 6 months of 2023, the Nairobi Securities Exchange (NSE) listed lender operating expenses increased by 15 per cent on account of new hires aimed at driving the lender’s business growth.
Following the improved performance, the Board of Absa Kenya has approved an interim dividend payment of Kshs.0.20 per share, equivalent to a total payout of Ksh1.086 billion, for the review period.