Absa Bank has reported a 34% growth in its net profit after tax to Kshs.5.9 billion for the period ended 31 March 2024. This is as compared to Ksh. 4.5 billion for a similar period last year.
The rise in profitability was due to the bank’s ongoing revenue diversification strategies that are supported by new
businesses such as bancassurance, asset management, Timiza and stock brokerage, as well as rising customer assets, total revenues accelerated by 19% to Kshs.16.5 billion. Resultingly, interest income grew by 22% to Kshs.11.4 billion, while non-funded income rose by 13% to Kshs.5.1 billion.
The bank’s costs grew by 11% in the period as a result of enhanced strategic investments in its human capital and digital transformation agenda. However, the Bank’s cost-to-income ratio improved to 33.9% because of its efficiency efforts. Impairment increased marginally in the quarter compared to the same period last year, in keeping with the Bank’s prudence in risk management.
The bank grew its loans and advances by 5% to reach Kshs.327 billion, underscoring its broader mission to empower its customers’ growth stories. Customer deposits for the period rose by 14% to Kshs.355 billion, further propelling balance sheet momentum.
Abdi Mohamed, Absa Bank Kenya PLC Managing Director and CEO said: “We are pleased with the resilient financial outcomes attained in the quarter under review, which demonstrates that we are sustaining strong business performance anchored on our new strategy while aligning with the needs of individuals, businesses, and society and living our purpose of empowering Africa’s tomorrow together…one story at a time.
The quarter under review has seen the Bank accelerate the execution of its refreshed strategy unveiled last year. Under this strategy, a key priority is to transform Absa into a modern consumer financial services company. Through the rollout of new products, technologies, and relationship models, the Bank has recorded the fastest growth in customer numbers in the first quarter of the year. The Bank has also continued to entrench itself as a market leader in Business Banking, undertaking significant growth campaigns focused on critical economic sectors such as agriculture, trade and manufacturing. Additionally, Absa continues to be a leading corporate and investment banking partner in the region.
In conclusion, Mohamed stated: “Looking ahead, we aim to continue sustaining the growth and momentum in our core business through a relentless focus on executing our strategy and thus driving our market share objectives. This will be driven by deliberately transforming our business for the future by making the necessary investments in technology and innovation while remaining customer-centric.”