NAIROBI, Kenya, March 14 – Absa Bank Kenya has reported a Sh14.6 billion net profit for the full year ended 31 December 2022, a 34 per cent growth compared to the Sh10.6 billion posted in 2021.
The improved performance was driven by sustained double-digit growth across all business segments as the bank accelerated lending to Small and Medium Sized Enterprises(SMEs).
During the period, customer loans grew by 21 per cent to Sh284 billion while customer deposits rose by 13 per cent to Sh304 billion further supporting balance sheet growth.
Total revenues went up 25 per cent to Sh45.9 billion, driven by a 28 per cent growth in net interest income to Sh32.3 billion.
“We are pleased with this outstanding financial performance, which was achieved in the face of an unprecedented and complex operating environment characterized by significant events such as the general elections, drought, and persistent Covid-19 pandemic impacts,” said Absa Bank Kenya PLC Interim Managing Director Yusuf Omari.
The lender’s non-funded income expanded by 17 per cent to Sh13.7 billion, reinforced by strong growth from the asset management business, foreign exchange income, bancassurance as well as card operations.
Despite the increased income, the bank’s statutory operating expenses increased by 12 per cent to Sh25.1billion from Sh23.1billion.
Impairments increased by 38 per cent compared to a similar period last year mainly driven by one-off releases that were booked in 2021.
“Non-performing loan ratio is at 7.3 per cent and better than the industry average demonstrating the prudence of the bank’s lending decisions,” the lender said.
The Bank’s total capital adequacy ratio closed the year at 18.5 per cent and liquidity reserve position at 33.6 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively.
The improvement in returns and profitability saw the lender declare a total dividend of Sh1.35 per share, a 23 per cent increase from last year, bringing the total dividend payout to Sh7.3 billion.
