Absa Bank Kenya PLC has reported a net profit of Kshs.14.6 billion for the year ended 31 December 2022, representing a 34% growth in comparison to Ksh. 10.7 Billion in the previous year.
The rise in profitability was on the back of a 25% increase in the total revenues to Ksh. 45.9 Billion which was driven by 28% rise in the net interest income to Ksh. 32.3 Billion. This was supported by increased lending, including to the Small and Medium Sized Enterprises (SMEs) and to key economic sectors such as manufacturing, energy and agriculture in recognition of the critical role they play in the advancement of our economy and job creation. Non-funded income expanding by 17% to Kshs.13.7 billion, reinforced by strong growth from our asset management business, foreign exchange income, bancassurance as well as card operations.
On the hand total operating expenses rose by 18% to Ksh. 25 Billion driven by a 38% rise in the loan loss provision to Ksh. 6.5 Billion and a 12% rise in the staff costs to Ksh. 10.5 Billion up from Ksh. 9.4 Billion in the previous year.
The commendable performance was driven by sustained double-digit growth across all business segments as the Bank scaled efforts to support key sectors of the economy, helping businesses and individuals to thrive. As such, customer loans in the period grew by 21% to Kshs.284 billion while customer deposits rose by 13% to Kshs.304 billion further supporting balance sheet growth.
As a result, the Bank has declared a total dividend of Kshs.1.35 per share, a 23% increase from last year, bringing the total dividend payout to Kshs. 7.3 billion.
Absa Bank Kenya PLC Interim Managing Director Yusuf Omari said: “We are pleased with this outstanding financial performance, which was achieved in the face of an unprecedented and complex operating environment characterized by significant events such as the General Elections, drought, and persistent Covid-19 pandemic impacts. This set of results is a clear demonstration of our remarkable success in executing our Growth, Transformation and Returns Strategy where we outperformed in all the core measures. We have significantly transformed our business and set a strong foundation to outperform in the next horizon of our strategy.”