Absa Bank Kenya has reported a net profit of Ksh 10.7 billion for the first half of 2024, showcasing a robust 32 percent increase from the previous year.
This growth comes despite challenges posed by a rise in non-performing loans, which have increased to Ksh 32.18 billion. The bank’s performance is attributed to a significant rise in both interest and non-interest income, with net interest income climbing by a third to Ksh 19.2 billion and non-interest income growing by 26 percent to Ksh 8.14 billion.
The bank’s loan book expanded by 21.6 percent to Ksh 317.95 billion, contributing to the revenue growth. However, the increase in NPLs and a 74 percent rise in loan loss provisioning to Ksh 5.16 billion have driven up operating expenses by 30 percent. Despite these challenges, Absa’s strategic focus on digital banking, SME support, and corporate banking has positioned it for continued growth.
While addressing the delegates, Abdi Mohamed, Managing Director and CEO, stated that these results underscore the bank’s unwavering dedication to providing financial solutions that address the diverse needs of its customers.
“This commendable outcome, realized amidst a challenging macro-economic environment, underscores the efficacy of the Bank’s growth strategy and its unwavering dedication to providing relevant financial solutions that address the diverse needs of individuals, enterprises, and communities, because we want to continue being a critical enabler of their growth stories,” said Abdi
The bank’s board has declared an interim dividend of Ksh 0.20 per share, amounting to Ksh 1.09 billion, to be paid in October. Absa’s leadership remains optimistic, emphasizing the bank’s resilience and strategic initiatives aimed at enhancing customer service and expanding its market presence