For the six-month period that concluded on June 31, 2022, Absa Bank Kenya PLC recorded a net profit of KSh6.3 billion (US$52.68 million), a 13% increase from KSh5.6 billion (US$46.82 million) reported for the same period in 2017.
The increased performance was made possible by quicker lending that resulted in double-digit revenue growth as the economy recovered from the Covid-19 pandemic‘s negative effects.
The Bank saw a 20% increase in net interest income as a result, primarily due to asset growth across all divisions, while total revenue increased by 17% to KSh20.9 billion (US$174.75 million) in the review period from KSh17.8 billion (US$148.83 million).
“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.”
From KSh262 billion (US$2.19 billion) recorded during H1 2021, customer deposits increased by 7% to KSh282 billion (US$2.36 billion). The transactional accounts are primarily where deposits have increased.
The group’s balance sheet saw a 17% expansion supported by organic growth and the additional income streams created as the lender evolved into a full financial service group powered by a larger proposition set.
The bank’s adoption of digitization initiatives can be seen in the fact that digital transactions made up 70% of the entire volume of client transactions, ATMs 11%, and branches 10%.
However, due to the prolonged recovery from the financial crisis, the interest rate on loans increased to 2.3% from 1.8 during the preceding quarter.
The Bank kept making investments in new and varied business lines during the time period, which considerably aided in its expansion.
On the strength of excellent growth in FX income, Bancassurance, and assets management fees, non-funded income climbed by 11%.