Absa Bank Kenya reported a KSh14.6 billion net profit for the year ended December 31, 2022.
This was a 34 per cent growth compared to the KSh10.6 billion posted in 2021.
The improved performance was attributed to sustained double-digit growth across all business segments as the Bank accelerated lending to Small and Medium Sized Enterprises(SMEs).
Customer loans grew by 21 per cent to KSh284 billion, while customer deposits rose by 13 per cent to KSh304 billion.
Total revenues rose 25 per cent to KSh45.9 billion, driven by a 28 per cent growth in net interest income to KSh32.3 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.
#AbsaFY2022FinancialResults pic.twitter.com/qHT7WZtpsb
— Absa Bank Kenya (@AbsaKenya) March 14, 2023
Absa bank’s non-funded income expanded by 17 per cent to KSh13.7 billion, reinforced by solid growth from the asset management business, foreign exchange income, bancassurance, and card operations.
However, the Bank’s statutory operating expenses increased by 12 per cent to KSh 25.1 billion from KSh 23.1 billion.
Impairments increased by 38 per cent compared to a similar period last year, mainly driven by one-off releases 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 of KSh1.35 per share, a 23 per cent increase from 2021, bringing the total dividend payout to KSh7.3 billion.
