ABSA bank’s net profit rises 161pc to Sh10.8bn

NAIROBI, Kenya, March 16 -Absa Bank Kenya has reported a 161 percent rise in net profit for the year ended December 31, 2021, which stood at Sh109 billion.

The bank attributed the rise to growth in interest income particularly in the small and medium enterprises segment which was supported to drive economic growth.

Total income grew by seven percent to Sh36.9 billion, driven by higher interest income, which rose by eight percent.

ABSA Bank Chief Executive Officer said the growth was also supported by a significant reduction in impairments related to improving macroeconomic variables.

“The outcomes of 2021 are a validation that our growth, transformation, and returns strategy is working and delivering value for our stakeholders,” he said.

Customer assets increased by 12 percent to Shs 234 billion, total assets increased by 13 percent to Shs 429 billion with customer deposits growing by 6 percent to Shs 269 billion.

“This has supported strong growth in profit after tax of 161 percent and demonstrates a revamped business which is performing better than a pre-COVID19 period,” the bank said.

The bank’s operating expenses were reduced and resulted in a cost to income ratio of 45 percent.

“ The efficiency ratio demonstrates pay-offs being realized from our transformational investments of over KES 5 billion in the recent past,” the bank said.

The bank has resumed dividend payment with the board recommending a dividend per share payment of Shs 1.1.

“Return on equity has materially recovered to 19 percent and we are pleased to resume dividend payment demonstrating recovery of our business and strength of our capital,” a statement issued by the board of directors indicated,” the statement read in part.