Absa Bank Kenya Posts 13% YoY Increase in Net Profit in H1 2022

Leading financial services group Absa Bank Kenya reported its financial results for the half year period ended June 2022 with net profit growing by 13% to Ksh 6.3 billion driven by a 20% rise in Net Interest income to Ksh 14.4 Billion.

The Nairobi Securities Exchange listed firm said its revenue for the six month period rose by 17% to Ksh 20.9 Billion as the lender enhanced lending to Small and Medium Enterprises (SMEs) to assist them reposition for growth, recognizing the critical role they play in job creation and economic growth. During the period under review, customer deposits grew by 7% to Ksh 282 billion while customer loans recorded a 19% growth to Ksh 262 billion significantly boosted by trade loans, mortgages, and scheme loans as well as asset financing.

In the 6-month period, the Bank continued to invest in new and diverse business lines, which are significantly contributing to its growth. Non-funded income increased by 11% to Ksh 6.4 billion on the back of impressive growth in FX income, Bancassurance and assets management fees.

While commenting on the financial results, Absa Bank Kenya PLC Managing Director Jeremy Awori said: "We are pleased with this performance, which reflects our customers' resilience and tenacity. It also validates the relevance of our brand to our customers' needs and demonstrates the role we continue to play in enabling our customers to participate rightfully in the economic development of our nation."

AbsaKenya CFO Yusuf Omari said the 20% growth in Net Interest income was mainly driven by increased balance sheet volume despite an 11% increase in costs to Ksh 8.8 Billion. The rise in costs was mainly driven by investments the bank made in hiring more staff as the lender hired more than 200 sales staff between Q4 2021 to June 2022.

Absa's total assets grew by 12% to Ksh 445 Billion from Ksh 398 Billion posted in a similar period last year.

Source: Kenyan Wall Street