Absa Bank profit after Tax jumps 328% to US$72m for period ending September 2021

KENYAAbsa Bank, a financial services group, has recorded a 328 percent jump in its Profit after Tax for the period ending 30 September 2021.

The profit rose to KSh8.2 billion (US$72.98m), as compared to KSh.1.9 billion (US$16.91m) recorded in the same period 2020, which was attributed to the strengthening macro-economic environment and resilience in customer operations.

The bank also recorded KSh.27.3 billion (US$242.98m) in total income, a 7 percent increase credited to higher increased income which increased by 9 percent year on year due to increased lending.

Loans issued to customers, over the period, grew by 9 percent to KSh.229 billion (US$2.04m) while customer deposits also grew by 9 percent to KSh.269 billion (US$2.39m).

However, the bank recorded a 3 percent drop in operating expenses, coming down to KSh12 billion (US$106.81m) due to what it described as ‘spending discipline and cost initiatives.

Commenting on the financial results, Absa Bank Kenya Managing Director Jeremy Awori assured customers that its positive performance during the period would strengthen the bank’s commitment to helping small and micro businesses recover from the effects of the pandemic.

“Despite the negative economic effects of the pandemic, all business units remained profitable, registering growth on key lines,” Awori said.

“The pandemic and its negative effects continue to persist, but we have drawn inspiration from our customers to rise above the storm and continue working together to keep the wheels of our economy turning.”

Additionally, the firm’s efficiency ratio improved to 44 percent in Q3 2021, down from 49 percent recorded last year. The bank’s average loan loss ratio reduced to 2.0 percent from 4.9 percent in Q3 2020.

Awori added that the bank was working towards coming up with innovations in their internet and mobile platforms that would assist customers to view and manage their debit card functionality online and this would increase customer deposits in the bank.

“These innovations include temporary card freezing and unfreezing, card replacement, PIN setting, and resetting, and card withdrawal limit management. We are optimistic that we shall make good our commitment to continue innovating and enhancing our customers’ banking experience,” he added.

Liked this article? Subscribe to DealStreet Africa News, our regular email newsletter with the latest news, deals, and insights from Africa’s business, economy, and more. SUBSCRIBE

Other Recent Posts

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.