•The lender's managing director Jeremy Awori attributed improved results to business recovery and reduced impairment costs.
•Customer deposits increased by five per cent to Sh270 billion.
Image: MOSES MWANGI
Absa Bank Kenya's profit for the first three months of the year rose to Sh3 billion, signalling a 22 per cent growth compared to the same period last year.
The lender's managing director Jeremy Awori attributed improved results to business recovery and reduced impairment costs.
Total income grew by 12 per cent to Sh9.9 billion, primarily driven by higher net interest income which went up by 15 per cent year on year, as a result of increased lending.
Non-funded income grew by six driven by new innovations and continued digitization.
“The year has started with great momentum and we are encouraged by this performance which is a reflection of the tenacity, determination and resilience of our customers across our different business segments," Awori said.
For the period, total assets increased by 14 per cent to Sh438 billion with growth mainly driven by customer lending.
Customer deposits increased by five per cent to Sh270 billion.
In a statement, the bank said its investment in new businesses is bearing fruit with bancassurance, asset management and financial markets products contributing significantly to income growth in the period under review.
“Our capital position remains strong to continue supporting a robust balance sheet growth," Awori said.
The bank's cost to income ratio dropped to 45 per cent from 46 per cent in the same period last year.
Impairment decreased by 15 per cent compared to a similar period last year reflecting an improving macroeconomic environment for our business and our customers.
The Bank’s average loan loss ratio reduced to two per cent from three demonstrating the prudence of our lending decisions.
The bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement.
The total capital adequacy ratio closed the quarter at 17 per cent and the liquidity reserve position at 36.7 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively.