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Absa to restructure customers' loans, repayment plans

The bank will restructure loans by reducing monthly installments or take a short-term repayment holiday.

In Summary

•Absa will assess each case based on its individual merit and respond to requests within seven days.

•Customers are advised to reach the bank's personal bankers and relationship managers to discuss a suitable repayment plan.

Absa Bank Kenya PLC managing director Jeremy Awori celebrates with staff at the Sarit Centre branch during the official unveiling of the Absa brand in Kenya on February 10
Absa Bank Kenya PLC managing director Jeremy Awori celebrates with staff at the Sarit Centre branch during the official unveiling of the Absa brand in Kenya on February 10
Image: COURTESY

Absa Kenya says it will adjust its banking terms to help cushion support customers and businesses from the economic effects of the coronavirus.

The lender on Tuesday said it will restructure customers loans by reducing monthly installments over a period of up to one year, or take a short-term repayment holiday.

“We understand that this is a difficult period and we want to work with our customers to find a way to overcome these financial challenges,” managing director Jeremy Awori said.

Customers with active personal and business loans who may be experiencing financial strain due to the prevailing circumstances, can speak to the bank's personal bankers and relationship managers to discuss a suitable repayment plan.

The bank will assess each case based on individual merit and respond to requests within seven days, it said.

“We hope and trust that this will enable all affected customers to cope with any financial difficulties during this period,” Awori said

The lender has reported a Sh7.45 billion profit after tax for the year ended December 2019, despite huge rebranding costs incurred in the transformation from Barclays Kenya to Absa.

The bank incurred a Sh1.5 billion separation and re-branding cost which weighed down its final earnings.

Normalised profit after tax was however Sh8.5 billion (excluding the exceptional item of KSh1.5billion), reflecting a growth in earnings compared to the previous year net profit of Sh7.4 billion.

In the year to December 2019, Absa extended a total Sh194.9 billion as loans and advances to customers,9.8 per cent more than Sh177.4 billion extended in 2018.

 

Meanwhile, the bank is keen to pay supplier invoices within 14 days, which management said is a move to help Small and Medium Enterprises meet their financial obligations during this period.

It is also working towards paying all invoices of Sh1 million and below within seven days.

This should go a long way in helping these businesses maintain their cash flow and working capital,” said Awori.