Absa Bank Kenya has posted a 14 per cent growth in gross profit to Sh23.7 billion for the full year 2023, which also saw its net earnings go up 12 per cent to Sh16.4 billion compared to 2022.

In the reviewed period, the bank’s total revenues surged by 19 per cent to Sh54.6 billion backed by the growth realized in customer assets and new business ventures by the financial institution including bancassurance, asset management, and digital finance.

The 2023 fiscal year also saw Absa Bank Kenya’s net interest income go up by 24 per cent to Sh40 billion, while the bank’s non-interest income increased 6 per cent to Sh14.5 billion.

Similarly, its customer deposits expanded 19 per cent to Sh363 billion, as its customer assets grew 18 per cent to Sh336 billion in spite of the challenging macro-economic environment.

The Bank says it focused on supporting key economic sectors including trade, energy, telecommunications, manufacturing, commercial property and affordable housing in 2023.

Read More

  1. Absa Kenya: 98 per cent of transactions in 2023 were on digital platforms - VIDEO
  2. PETER WAWERU: Sponsorship from the corporates can grow sports, the economy
  3. ‘Your Story Matters’: Absa repositions its brand, promises better services in Africa

It also prioritized lending to SMEs as well as enabling them to access key markets, mentorship, and networking, as the company pushed the uptake of its digital solutions.

Speaking during the results announcement, Absa Bank Kenya MD and CEO Abdi Mohamed credited the stellar growth to customer resilience and the adoption of an notable strategy.

“It is also a demonstration that our strategy is effective in creating value for all our stakeholders while delivering long-term growth in a dynamic operating environment,” stated Mohamed.

He added: “With 2023 being the first year of implementation of our five-year strategy, this performance gives us a strong launch pad from which we will execute our set priorities.”

During the 2023 financial year, Absa Bank Kenya’s total assets increased by 9 per cent to end the year at Sh520 billion, up from Sh477 billion recorded during the 2022 fiscal year.

Similarly, Absa Bank Kenya spent more than Sh22 billion into credit linked to sustainability projects, including renewable energy, green construction, and climate-smart agriculture.

Owing to the impressive performance in 2023, the Absa Board proposed a final dividend payout of Sh7.3 billion to shareholders, which translates to Sh1.35 per ordinary share.

Together with the Sh0.20 per share in interim dividend paid out in October 2023, the total dividend for the year totals Sh8.42 billion, a 14.8 per cent growth compared to FY2022.

Absa’s statutory operating expenses went up 16 per cent as it invested more on people and transformation to grow revenues which improved its cost to income ratio to 39.7 per cent.

Its balance sheet growth and a tough operating environment saw its impairment rise by 43 per cent compared to the same period in 2022 based on principles of prudence in risk management.

Absa total capital adequacy ratio closed the year at 18.1 per cent and liquidity reserve at 31.1 per cent against the regulatory limits of 14.5 per cent and 20 per cent respectively.

“We are confident in our ability to accelerate growth momentum and sustainably create value for all our stakeholders,” indicated Mohamed.

He said Absa will continue executing its strategy to propel it as an innovative financial services partner for consumers and SMEs as well as corporate and investment banking.

Mohamed added that Absa will continue investing heavily in its digitalisation efforts to enhance customer experience and leverage its strong market presence and reputation.