Absa Bank Kenya PLC has announced improved financial results for the year ended 31 December 2024, with net earnings rising by 28% to Ksh 20.9 billion. This performance reflects Absa Bank’s commitment to supporting businesses, individuals, and key economic sectors.
The bank has declared a total dividend of Ksh9.5 billion, translating to Ksh1.75 per ordinary share, an increase of 13% from the previous year. During the period, Absa focused on supporting its customers to navigate economic shifts and capitalise on growth opportunities by improving access to financing and strengthening support for critical sectors. The bank’s customer loans and advances closed at Ksh309 billion.
Absa Bank Kenya Managing Director & CEO, Abdi Mohamed, attributed the improved performance to disciplined execution of strategic initiatives that support customer growth while reinforcing the Bank’s reputation as a trusted brand committed to advancing a sustainable future.
He further highlighted Absa’s ongoing investment in digital transformation to enhance customer experience and its commitment to employee growth through talent development, future skills investment, and well-being initiatives that have earned the Bank recognition as a top employer for several years.
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The bank expanded financial access in notable sectors such as manufacturing, trade, commercial property and affordable housing, renewable energy, amongst others, providing Ksh180 billion in new gross lending. By investing in these key areas, Absa not only continued strengthening individual businesses but also catalysing job creation, infrastructure development, reinforcing its purpose of “Empowering Africa’s tomorrow, together … one story at a time.”
Additionally, customer deposits increased to Ksh367 billion, reflecting customers’ growing confidence in Absa as a leading financial partner. In the period, total revenue grew by 14% to Ksh62.3 billion, supported by strong funded income of Ksh46.2 billion and an 11% increase in non-funded income to Ksh16.1 billion.
Deepening financial access
In expanding financial access, Absa grew its agency banking network to 3,000 locations nationwide, with plans to scale to 17,000 outlets over the next two years. During the year, Absa reinforced its long-term commitment sustainability, with over Ksh 47B advanced in sustainable finance.
Efficiency
While the ongoing transformational investments contributed to a 9% cost increase, bringing total costs to Ksh23.5 billion, Absa Bank showed a 300-basis points improvement in its cost-to-income ratio to 37.7%.
Impairment improved by 200 basis points to Ksh9.1 billion compared to the same period last year, reflecting the bank’s commitment to prudent risk management principles amidst balance sheet growth and a challenging operating environment. Despite this increase, the Bank continues to maintain a healthy portfolio quality and has established a sufficient coverage ratio to effectively minimize and manage potential future credit losses.
Mr. Mohamed reaffirmed the bank’s commitment to long-term growth, stating: ‘We are confident in sustaining our momentum while delivering meaningful impact for our customers, colleagues, and stakeholders. With a strong balance sheet and solid capital position, Absa is well-placed for the future.”
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