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Absa Records Ksh3 Billion In Profits In Q1 Of 2022

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Absa Bank Kenya PLC has today reported a Profit after Tax of Ksh3billion for the quarter ending March 31, 2022, a growth of 22 percent compared to a similar period last year. 

The Bank reported that all its business units remained profitable, registering growth on key lines in the period. Total income grew by 12 percent to Ksh9.9 billion, primarily driven by higher net interest income which went up by 15 percent year on year, as a result of increased lending. Non-funded income grew by six percent driven by new innovations and continued digitization.

Absa Bank Kenya Managing Director, Jeremy Awori, said the Bank’s strong performance reflects customers’ resilience in a challenging environment and points to improving macroeconomic conditions compared to the same period last year, as well as the successful execution of its five-year strategy which is focused on driving Growth, Transformation, and Returns.

“The year has started with great momentum and we are encouraged by this performance which is a reflection of the tenacity, determination and resilience of our customers across our different business segments. Our business is on a growth trajectory and well positioned to continue playing its rightful role in driving economic recovery from the slowdown experienced in the last two years,” Mr Awori said.

For the period, total assets increased by 14 percent to Ksh438 billion with growth mainly driven by customer lending. Customer deposits increased by five percent to Ksh270 billion.

The Bank said its investment in new businesses is bearing fruit with bancassurance, asset management and financial markets products contributing significantly to income growth in the period under review.

“Our capital position remains strong to continue supporting a robust balance sheet growth. We have also accelerated our investment towards enabling new growth areas, improving customer experience and driving operational efficiency,” Mr Awori said. 

In 2022, the Bank has committed a capital investment of Ksh2 billion in over 70 projects that are designed to increase operational efficiency and improve customer experience. 

The cost to income ratio stood at 45 percent from 46 percent in the same period last year. Investments towards building the “most customer-obsessed, digitally-led bank” has resulted in improvement in Net Promoter Scores with approximately 90 percent of all transactions now being serviced on alternate channels.

Impairment decreased by 15 percent compared to a similar period last year reflecting an improving macroeconomic environment for businesses and customers. The Bank’s average loan loss ratio reduced to two percent from three percent demonstrating the prudence of our lending decisions.

The Bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement. The Bank’s total capital adequacy ratio closed the quarter at 17 percent and liquidity reserve position at 36.7 percent against the regulatory limits of 14.5 percent and 20 percent, respectively.

Read: Absa Customers To Access 2,200 ATMs In New Partnership Deal With Kenswitch

>>> Medical Practitioners To Get Upto Ksh10M Unsecured Loans In Absa, KMA Partnership

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BT Reporter
BT Reporterhttp://www.businesstoday.co.ke
editor [at] businesstoday.co.ke
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