GROWTH

Absa Bank's H1 profit up 13% on growing loan book

Net earnings for the period were Sh6.3 billion.

In Summary
  • Its loan book stood at Sh 262 billion.
  • The profit growth is up from Sh5.6 billion reported in a similar period last year.
Absa Bank Kenya PLC managing director Jeremy Awori during the release of 2022 first half-year financial results in Nairobi
Absa Bank Kenya PLC managing director Jeremy Awori during the release of 2022 first half-year financial results in Nairobi
Image: HANDOUT

Absa Bank has reported a Sh 6.3 billion net profit for the half-year period ended June, driven by accelerated lending. 

This is a 12.9 per cent growth compared to the Sh5.6 billion posted in a similar period last year, as the economy continued to recover from the negative impact of the Covid-19 pandemic.

The bank registered a 20 per cent growth in net interest income to Sh 14.4 billion, mainly driven by asset growth across all its segments.

Customer loans recorded a 19 per cent growth to Sh262 billion boosted by trade loans, mortgages, and scheme loans as well as asset financing.

The total revenue collected as at the end of the half recorded the fastest growth in over a decade, up 17 per cent to Sh 20.9 billion.

Revenue growth was also backed with the non-funded income which increased by 11 per cent on growth in foreign exchange income, bank assurance and assets management fees.

The lender also noted that the jump in profits was occasioned by its efforts to enhance lending to Small and Medium Enterprises (SMEs).

Absa Bank managing director Jeremy Awori said  the performancereflects customers' resilience and tenacity.

“It also validates the relevance of our brand to our customers’ needs and demonstrates the role we continue to play in enabling our customers to participate in the economic development,” Awori said.

Also during the period, the bank continued to invest in new and diverse business lines such as WhatsApp Banking, Agency Banking  and Timiza, which it says contributed to its growth.

During the period, the lender also enhanced investment in innovation and transformation agenda ,which resulted in the launch of the instant online account opening platform as well as the introduction of Cash Deposit Machines across the country.

“We have so far invested about Sh 2.3 billion in innovation with over 75 projects in place and by the close of the year, we intend to pump more, about Sh2 billion to further the innovation initiatives,” Awori said.

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