Absa Bank Kenya has posted profit before tax of Sh12.1 billion for the half year ended June 30, 2023, which marked a 32 per cent increase compare to the same period in 2022.

The bank also realized a revenue growth of 31 per cent to Sh27.4 billion, with its asset base also marking a remarkable increase of 13 per cent to Sh504 billion for a similar period.

While releasing the bank’s H1 2023 financial results, Absa revealed that its loans and advances also experienced a 22 per cent surge to Sh318 billion during the first six months.

Absa credited its double-digit revenue growth to a 33 per cent increase in net interest income to Sh19.2 billion, as non-funded income rose by 26 per cent to Sh8.1 billion.

During the period in review, the lender says it also registered a significant growth FX income, fees and commissions, asset management, bancassurance, and stock brokerage.

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Customer deposits also went up 18 per cent to Sh333 billion in the six months reviewed as operating expenses also surged by 15 per cent based on new hires to drive business growth.

Speaking during the release of the financial results, Absa Bank Kenya MD Abdi Mohamed said the bank’s stellar performance was a sign of its pledge to aid their customers to grow.

“In the face of a complex business environment, we are proud of the role we continue to play as an active force for good for our customers and the economy by ensuring continued access to finance, as evidenced by the growing balance sheet in the period under review,” said Mohamed.

Based on the enhanced performance, the Absa Bank Kenya Board approved an interim dividend payment of Sh0.20 per share, marking a Sh1.086 billion payout for the six months.

The bank says it accelerated its innovation strategy by unveiling Mobi-Tap, a payment solution allowing SMEs to accept speedy and safe card-based payments via a mobile phone.

It also unveiled the Absa Buy Now Pay Later proposition and Wezesha Biashara as it sought to enhance access to financial and non-financial support to SMEs in the tough economy.

The bank’s cost to income ratio rose to 37 per cent from 42 per cent compared to a similar period last year as the it took significant measures to enhance its risk management efforts.

“The strong H1 performance gives us confidence that our strategy is delivering the desired results both for our customers and shareholders. With our transformation agenda, we are building a strong foundation upon which we will continue to modernize our business and accelerate our growth in market share,” Mohamed added.

Absa Bank Kenya Chief Strategy Officer Moses Muthui said the lender plans to continue expanding its physical branches from the current 83 even as it upscales it digital offerings.

This comes as Muthui indicated that the pan-African bank was in the advanced stages of turning its digital banking product, Timiza, into a stand-alone entity with more offerings.

Absa Kenya Chief Financial Officer Yusuf Omari said already Sh2 billion has been spent on strengthening its digital solutions by automating its processes and back-office functions.