Absa Bank Kenya has joined the rest of the country’s biggest banks in reporting bumper first-quarter profits on the back of a rise in CBK lending rates that allowed them to charge more for loans and mortgages.
For the three months to this March, Absa Bank recorded a 34% surge in quarterly profits as its earnings jumped to Ksh5.9 billion from Ksh4.4 billion after-tax profit posted in the same period last year.
Most of the higher profits came from higher interest rates on loans, with net interest income coming in at Ksh11.3 billion, compared with Ksh9.3 billion a year earlier.
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Generally, the lender saw a 19% growth in revenue to Ksh16.5 billion, and the strong operating performance, its chief executive said, was also accelerated by various investments in growth enterprises owned by Kenyan communities and other corporate deals.
“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,” said Abdi Mohamed, the Chief Executive Officer and Managing Director of Absa Bank Kenya.
Investment banking and trading at Absa also did well in the quarter as its earnings per share improved from 82 cents in March 2023 to Ksh1.09.
The results were all the more relieving for Absa Bank because they came just a few days after rival big player NCBA Bank announced its 1Q 2024 results, which are Ksh600 million lower than theirs, at Ksh5.3 billion.
Alongside hefty profits, both banks’ leaders are optimistic that this year will turn out better for them.
Read: NCBA Bank Opens Earnings Season With 5% Profit Rise
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