Absa Bank Kenya customers will receive dividends after a break in 2020 due to the effects of the Covid-19 pandemic on the business.
The lender on Tuesday maintained its proposed dividend per share at Sh1.1 same as 2019. The board has recommended a dividend pay-out of Sh6 billion for 2021.
The lender, spin off from Barclays Bank recorded a Sh10.9 billion Profit After Tax for the year ended December 31, 2021 a 161 percent growth from Sh4.2 billion in 2020.
Total income grew by seven per cent to Sh36.9 billion, driven by higher interest income, which rose by eight per cent as a result of increased lending.
"This was however partially offset by margin compression occasioned by drops in the Central Bank Rate (CBR) whose benefits the bank continued to pass to customers as a responsible lender," Absa Kenya Managing Director Jeremy Awori said when he announced the results.
The bank's total assets grew by 13 per cent to Sh429 billion from 378 billion in the period under review with growth attributed to general lending, trade loans, mortgages and scheme.
Awori said customer deposits increased by 6 per cent to Sh269 billion.
The bank reported that all its business units remained profitable, registering growth on key lines, attributing the performance to growth in net interest income, driven by the small and medium enterprises.
"We have drawn inspiration from the resilience of our customers and are committed to continue providing them with the financial solutions they need to pursue their growth ambitions,"Awori said.
Awori said investment in new businesses is bearing fruit with Timiza, Bancassurance and asset management contributing to growth.
"In the recent past, we have invested over Kenya Shillings 5billion in different platforms and capabilities, including the launch of our first-in-market WhatsApp banking proposition,upgrade of our Timiza platform and improvement of our Absa Mobile app with new features,” he said.
Awori said approximately 90 per cent of all transactions are now available on alternative channels which is a pay-off from digitisation.
The bank’s average loan loss ratio reduced to 2.0 per cent while its capital and liquidity ratios remained above the Central bank's regulatory requirement.
The bank's total capital adequacy ratio closed the year at 17.5 per cent and liquidity reserve position at 39.7 per cent against the regulatory limits of 14.5 per cent and 20 per cent respectively .
