Absa Bank Kenya has reported a profit after tax growth of 33.5 per cent up to KSh5.9 billion from KSh4.4 billion posted at a similar period last year.
The bank’s diversification strategy, supported by new businesses such as bancassurance, asset management, Timiza, and stock brokerage, seems to be paying off after total revenue rose 19 per cent to KSh16.5 billion from KSh13.9 billion last year.
Interest income grew by 22 per cent to KSh11.4 billion, while non-funded income rose by 13 per cent to KSh5.1 billion from KSh4.5 billion. Customer deposits surged by 14 per cent, reaching KSh355 billion, while customer assets expanded by 5 per cent to KSh327 billion from KSh322 billion.
“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,” Abdi Mohamed, Absa Bank Kenya Managing Director and CEO said.
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Furthermore, the bank’s total assets surged to KSh514.6 billion, marking a substantial increase from KSh484 billion in first quarter 2023 and highlighting its growing presence in the financial sector.
“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,” said Mohamed.
The cost-to-income ratio in first quarter 2024 improved to 33 per cent, a positive shift from the previous year’s 35 per cent, showcasing enhanced cost management and operational efficiency. This is despite the bank’s costs growing by 11 per cent in the period as a result of enhanced strategic investments in its human capital and digital transformation agenda.
“Looking ahead, we aim to continue sustaining the growth and momentum in our core business through a relentless focus on executing our strategy and thus driving our market share objectives. This will be driven by deliberately transforming our business for the future by making the necessary investments in technology and innovation while remaining customer-centric,” Mohamed stated.
By Frank Mugwe
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