Despite the raging effects of the pandemic, all business units remained profitable and resilient, registering growth on key lines, with Business Banking and Global Markets divisions’ revenue growing in double digits.
Total income grew by two per cent to Sh34.5 billion mainly driven by the growth of non-interest income, which was up five per cent year on year.
Normalised costs were well maintained, dropping by four per cent during the period under review. Net customer loans grew seven per cent to Sh209 billion.
Interest income grew by 100 basis points from the prior year largely on growth in the lending book; though partially offset by margin compression as a result of drops in Central Bank Rate (CBR), whose benefits the bank passed to customers as a responsible lender.
Customer deposits grew by seven per cent to Sh254 billion with transactional accounts making up to 69 per cent of the total deposits.
The lender’s transition from Barclays to Absa was successfully completed on time and on budget, having migrated all technology systems and rebranded all business assets.
''The bank will continue upgrading to more advanced systems, which will ultimately help, enhance the service experience,’’ Absa said in a statement.
The bank's capital adequacy ratio is at 17.5 per cent and liquidity reserve position at 38.7 per cent against the regulatory limits of 14.5 per cent and 20 per cent respectively.
