Absa Bank Kenya PLC has recorded a 34 per cent jump in its profit for the first quarter of the year to Ksh5.9 billion.
This is from the Ksh4.1 billion profit the lender posted in a similar period a year earlier.
The profit growth has been backed by a revenue diversification strategy which saw total revenue rise 19 per cent to Ksh16.5 billion supported by robust growth in balance sheet.
Customer deposits for the review period rose by 14 per cent to Ksh355 billion, customer assets increased 5 per cent to Ksh327 billion while non-funded income rose by 13 per cent to KSh 5.1 billion.
“We remain cognizant of the challenges in our operating environment but also mindful of the numerous opportunities that await us. As we navigate these uncertain times, we are confident that the Bank’s resilience, agility, and unwavering commitment to excellence will guide us toward long-term development and prosperity,” said Absa Bank Kenya Managing Director (MD) Abdi Mohamed.
“Our impairment increased marginally compared to the same period last year, despite this increase, portfolio quality remains better. We have ensured an adequate coverage ratio to ensure future credit losses are minimised and better managed,” he added
“As a result of the Bank’s strategic investments, underlying costs grew by 11 per cent in the period. However, the Bank’s cost-to-income ratio improved to 33.9 per cent because of its efficiency efforts. Impairment increased marginally compared to the same period last year, in keeping with the Bank’s prudence in risk management,” stated Absa Bank Kenya in its financial results.
“Looking ahead, we are aware of the challenges in our operating environment, but we are also mindful of the numerous opportunities that await us. As we navigate these uncharted waters, we are confident that the Bank’s resilience, agility, and unshakable commitment to excellence will serve as guiding beacons, illuminating the road to long-term development and prosperity.”
Read: Absa Bank Kenya Posts Ksh8.3 Billion Profit