Absa Bank Kenya  announced a 15 per cent year-on-year increase in net earnings, reaching Sh12.3 billion for the nine months ending September 30, 2023.

This impressive growth was attributed to the bank's robust performance across core business segments, as highlighted in its comprehensive financial report.

The bank witnessed a significant overall revenue surge of 20 per cent, reaching Sh40.2 billion during the reporting period.

Key contributors to this growth included a 26 per cent increase in net interest income, which closed at Sh29.3 billion.

Customer deposits also saw a substantial uptick, surging by 26 per cent to Sh354 billion, supporting a 14 per cent rise in customer assets to Sh331 billion.

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Absa Bank Kenya PLC's Managing Director, Abdi Mohamed, lauded these results, emphasizing the bank's commitment to executing its strategic vision.

"We are inspired by the positive progress we are making in the execution of our strategy focused on building a modern-day consumer financial services business, becoming a market leader in business banking while building a leading corporate and investment bank that is committed to connecting client ecosystems," Mohamed said.

The bank's strategic diversification efforts bore fruit, with new business lines such as Asset Management, Digital Finance, Bancassurance, and stock brokerage contributing significantly to a 6 per cent year-on-year growth in non-interest income, totaling Sh10.8 billion.

Mohamed highlighted the bank's dedication to customer-centric solutions, with the introduction of a Diaspora Banking proposition and a revamped Digital Banking offering during the reporting period.

In a move to bolster support for Small and Medium Enterprises (SMEs), the bank allocated a Sh100 billion fund for the sector over the next three years.

The newly launched Wezesha Stock digital platform aims to facilitate financing for retailers and distributors, demonstrating the bank's commitment to comprehensive support for SMEs.

Despite the challenging operating environment, the bank's efficiency levels showed improvement, with a notable decrease in the cost-to-income ratio to 38.7 per cent.

The directors underscored their commitment to strategic investments, evident in the 17 per cent increase in statutory operating expenses, and prudent risk management principles in a bid to overcome the tough operating environment.

The loan book of the lender, who is listed at the Nairobi Securities Exchange (NSE), more than tripled from Sh89.4 billion to Sh330.9 billion during Q3.

The listed firm said non-performing loans and Loan Loss Ratio, at 2.7 per cent, remained within the bank's risk appetite and was accompanied by an adequate coverage ratio to minimize future credit losses.

Closing with a message from the directors, the report emphasized sustained momentum in business performance, citing a 15 per cent year-on-year growth in profit after tax, amounting to Sh12.3 billion and improving the return-on-equity to 25.2 per cent.

The bank maintains a strong capital and liquidity position, with a total capital adequacy ratio at 17.7 per cent and liquidity reserve position at 29.8 per cent, comfortably exceeding regulatory requirements.