KENYA – Absa Bank Kenya PLC has reported a net profit of KSh6.3billion (US$52.68m) in the half-year period ended 31 June 2022, a 13 per cent increase from KSh5.6 billion (US$46.82m) reported during the same period last year.
The improved performance was achieved on the back of double-digit revenue growth driven by accelerated lending as the economy continued to recover from the negative impact of the Covid-19 pandemic.
As a result, the Bank registered a 20 per cent growth in net interest income, mainly driven by asset growth across all segments while total revenue went by 17 per cent to KSh20.9 billion (US$174.75m) in the review period from KSh17.8 billion (US$148.83m).
“We are pleased with this performance, which reflects our customers’ resilience and tenacity,” said Absa Bank Kenya PLC Managing Director Jeremy Awori.
“It also validates the relevance of our brand to our customers’ needs and demonstrates the role we continue to play in enabling our customers to participate rightfully in the economic development of our nation.”
Customer deposits surged by 7 per cent to KSh282 billion (US$2.36bn) from KSh262 billion (US$2.19bn) reported during H1 2021. The pickup in deposits is majorly from the transactional accounts.
As the lender is evolving towards becoming a full financial service group driven by a broader proposition set, the group’s balance sheet experienced a 17 per cent growth backed by organic growth and the new streams of revenue developed.
Digital transactions accounted for 70 per cent of the total volume of customer transactions, ATMs at 11 per cent, and branches accounted for 10 per cent, showing the uptake of digitization efforts by the bank.
However, the loans rate went up to 2.3 per cent from 1.8 during the previous period attributed to the slow recovery from the effects of Covid-19 pandemic.
During the period, the Bank continued to invest in new and diverse business lines, which are significantly contributing to its growth.
Non-funded income increased by 11 per cent on the back of impressive growth in FX income, Bancassurance, and assets management fees.
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