Absa Bank Kenya PLC has reported strong performance for the full year 2023 as net profit increased 12% to Ksh16.4 billion compared to the previous year, supported by increased funding of core sectors fuelling Kenya’s economy.
Based on the improved profitability, the Board has proposed to shareholders a final total dividend payout of Ksh7.3 billion, translating to Kshs. 1.35 per ordinary share. Taken together with the interim dividend of Ksh0.20 per share paid in October 2023, the total dividend for the year amounts to Ksh8.42 billion, representing a 14.8% increase compared to the preceding year.
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During the period, customer loans and advances increased by 18% to Ksh336 billion as Absa Bank Kenya focused on supporting key economic sectors such as energy, telecommunications, manufacturing, trade, commercial property and affordable housing. The bank says it also prioritized the needs of the SME sector, facilitating increased access to financing, access to markets, mentorship, and networking opportunities, as well as driving digital enhancements to improve the customer experience.
In the period, revenues increased by 19% to Ksh54.6 billion on the back of growing customer assets as well as faster growth of new business lines such as bancassurance, asset management, and digital finance. Interest income increased by 24% to Ksh40 billion, while non-funded income grew by 6% to Ksh14.5 billion despite a challenging macros environment.
“This impressive performance truly reflects the growth and resilience of our customers who have continued to give us a chance to contribute to their growth story as their financial partner,” Mr Abdi Mohamed, Absa Bank Kenya PLC Managing Director and CEO. “It is also a demonstration that our strategy is effective in creating value for all our stakeholders while delivering long-term growth in a dynamic operating environment.
Customer deposits increased 19% to Ksh363 billion. Total assets ended the year at Ksh520 billion, up from Ksh477 billion the year before, representing a 9% increase.
As part of the strategic milestones that drove this impressive performance, Absa continued to evolve towards becoming a modern, digitally powered business. In this regard, the bank launched the diaspora banking proposition and optimized its digital banking offerings, including the launch of its digital savings proposition, introduction of Buy Now Pay Later solution and term loans on Timiza, its virtual banking proposition.
Outlook
“Absa is well positioned for growth. With our robust balance sheet and a strong capital position, we will continue to invest in relevant initiatives that empower our customers and stakeholders to pursue and achieve their aspirations, while adeptly navigating external challenges,” Mr Abdi Mohamed, the CEO & MD says.
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