Paul Arithi 
Absa Bank Kenya PLC Managing Director, Abdi Mohamed
- Absa Bank Kenya PLC reports a 34% increase in Q1 net earnings to KShs.5.9 billion
Performance highlights:
• Total revenue up 19% to Kshs.16.5 billion
• Net interest income up 22% to Kshs.11.4 billion
• Non-interest income up 13% to Kshs.5.1 billion
• Customer deposits grew by 14% to Kshs.355 billion
• Profit before tax increased by 32% to Kshs.8.2 billion
Absa Bank Kenya Plc has announced a commendable 34% growth in its profit after tax to Kshs.5.9 billion for the period ended 31 March 2024, which illustrates the Bank’s progress in meeting its strategic objectives through diligent execution.
Amidst a challenging operating context characterised by volatile rates and elevated inflation, the Bank grew its loans and advances by 5% to reach Kshs.327 billion, underscoring its broader mission to empower its customers’ growth stories. Customer deposits for the period rose by 14% to Kshs.355 billion, further propelling balance sheet momentum.
Underpinned by the Bank’s ongoing revenue diversification strategies that are supported by new businesses such as bancassurance, asset management,Timiza and stock brokerage, as well as rising customer assets, total revenues accelerated by 19% to Kshs.16.5 billion. Resultingly, interest income grew by 22% to Kshs.11.4 billion, while non-funded income rose by 13% to Kshs.5.1 billion.
Speaking about the financial performance, Abdi Mohamed, Absa Bank Kenya PLC Managing Director and CEO said:
“We are pleased with the resilient financial outcomes attained in the quarter under review, which demonstrates that we are sustaining strong business performance anchored on our new strategy while aligning with the needs of individuals, businesses, and society and living our purpose of empowering Africa’s tomorrow together…one story at a time.
The quarter under review has seen the Bank accelerate the execution of its refreshed strategy unveiled last year. Under this strategy, a key priority is to transform Absa into a modern consumer financial services company.Through the rollout of new products, technologies, and relationship models, the Bank has recorded the fastest growth in customer numbers in the first quarter of the year.
The Bank has also continued to entrench itself as a market leader in Business Banking, undertaking significant growth campaigns focused on critical economic sectors such as agriculture, trade and manufacturing. Additionally, Absa continues to be a leading corporate and investment banking partner in the region.
Resulting from the Bank’s enhanced strategic investments in its human capital and digital transformation agenda for better customer experiences, underlying costs grew by 11% in the period.
However, the Bank’s cost-to-income ratio improved to 33.9% because of its efficiency efforts.Impairment increased marginally in the quarter compared to the same period last year, in keeping with the Bank’s prudence in risk management.
“We remain cognizant of the challenges in our operating environment but also mindful of the numerous opportunities that await us. As we navigate these uncertain times, we are confident that the Bank’s resilience, agility, and unwavering commitment to excellence will guide us toward longterm development and prosperity,” added Mr Mohamed.
