Absa Bank Kenya has reported a profit of Sh14.6 billion after tax for the year ended 31 December 2022, representing a 34 percent growth in comparison to the previous year.
As a result, the bank has declared a total dividend of Sh1.35 per share, a 23 percent increase from last year, bringing the total dividend payout to Sh7.3 billion.
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The performance was driven by sustained double-digit growth across all business segments. Customer loans in the period grew by 21 percent to Sh284 billion.
Deposits rose by 13 percent to Sh304 billion further supporting balance sheet growth.
Total revenues went up 25 percent to Sh45.9 billion, driven by a 28 percent growth in net interest income of Sh32.3 billion.
This was supported by increased lending to Small and Medium Sized Enterprises (SMEs) and key economic sectors such as manufacturing, energy and agriculture.
Absa Kenya interim managing director Yusuf Omari said the diversification strategy has continued to pay off with non-funded income expanding by 17 percent to Sh13.7 billion.
This he said was reinforced by strong growth from asset management business, foreign exchange income, and bancassurance as well as cards operations.
"We are pleased with this outstanding financial performance, which was achieved in the face of an unprecedented and complex operating environment characterised by significant events such as the General Elections, drought, and persistent Covid-19 pandemic impacts.”
The financial year under review saw the scaling of its innovation and digital transformation agenda, with more than 92 percent of all transactions now taking place outside of the branch.
“This set of results is a clear demonstration of our remarkable success in executing our growth, transformation and returns strategy where we outperformed in all the core measures" said Omari.
