Absa Bank Kenya PLC has reported an impressive 20 percent growth in profit after tax, reaching Kshs. 14.7 billion for the third quarter ending September 30, 2024. This marks a significant improvement from the same period last year, driven by strong performance across multiple business segments and strategic investments in innovation and sustainability.
The Bank’s total revenue surged 16 percent year-on-year to Kshs. 46.8 billion, underpinned by an 18 percent growth in net interest income to Kshs. 34.5 billion. Non-interest income also grew by 13 percent to Kshs. 12.2 billion, reflecting success in expanding asset management and brokerage services alongside traditional income streams.
Customer deposits closed at Kshs. 352 billion, slightly up from the previous period, while loans and advances reached Kshs. 311 billion. The Bank issued Kshs. 94 billion in new gross lending, supporting critical sectors of the Kenyan economy. These figures underscore Absa’s integral role in driving economic growth.
During the period, Absa invested in enhancing its digital capabilities, implementing a Kshs. 3 billion technology upgrade strategy. This aims to bolster core banking systems and improve customer service efficiency. In addition, the Bank increased its agency network fivefold, from 600 to over 3,000 locations, boosting accessibility for customers across the country.
The Bank also expanded its offerings to support small businesses and women-led enterprises, benefiting over 14,000 entrepreneurs with tailored solutions like Wezesha and Microinsurance. Its Shariah-compliant La-Riba banking services and the SME-focused Wezesha Stock platform were also enhanced.
Absa continued its sustainability journey with the establishment of the Absa Kenya Foundation (AKF), dedicated to enterprise development, education, natural resource management, and health initiatives. The Foundation’s efforts aim to amplify the Bank’s community impact while aligning with global sustainability goals.
Operational costs rose by 13.7 percent to Kshs. 17.7 billion, driven by transformational investments. However, the cost-to-income ratio improved to 37.8 percent, reflecting increased efficiency. Return on equity also rose to 25.4 percent
Despite a challenging economic environment, the Bank maintained a healthy credit portfolio, with impairments increasing by 19 percent to Kshs. 8.0 billion, reflecting prudent risk management. Its capital adequacy ratio stood at 19.4 percent, and liquidity reserves remained robust at 38.1 percent, well above regulatory requirements.
Absa Kenya Managing Director and CEO Abdi Mohamed attributed the strong performance to disciplined execution of strategic initiatives and the Bank’s commitment to innovation and sustainability.
“The results demonstrate the effectiveness of our growth strategy and highlight our commitment to meeting the evolving needs of our customers. As we look to the future, we remain focused on driving financial inclusion, fostering innovation, and supporting Kenya’s growth,” Mohamed said.
Absa plans to continue diversifying its revenue sources, improve customer experiences, and advance sustainable banking solutions. The Bank remains optimistic about leveraging emerging opportunities to deliver value to stakeholders while driving Kenya’s economic transformation.
With a solid foundation and strategic focus, Absa Bank Kenya is well-positioned for sustained growth and remains a key player in the country’s financial sector.