Absa Bank has reported a 29 percent increase in profit after tax, reaching Sh10.7 billion in the first half of 2024, compared to the same period last year.
The lender attributes the growth to revenue generation across all its business segments and a growing demand for soft loans among customers, despite challenging economic conditions marked by reduced consumer spending.
The lender’s customer deposits also saw a 6 percent increase, closing at Sh353 billion, driven by an increase in funded income, which reached Sh23 billion by the end of the reporting period.
While its net interest income expanded by 20 percent to Sh23 billion, non-interest proceeds grew by 8 percent to Sh8.8 billion.
“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. We want to continue being a critical enabler to their growth stories,” said Mohamed.
He emphasized the importance of customer satisfaction and the bank’s commitment to supporting the Kenyan economy.
“Our most important aspect is our customers’ stories and how we relate with them. We must play our role in ensuring that the Kenyan economy continues to grow,” he added.
In addition, Mohamed revealed that Absa’s board has approved an interim dividend of Sh0.20 for its shareholders.
According to the bank’s latest financial statement, loans and advances reached 316.3 billion in the review period after it booked Sh64 billion in new gross lending to critical sectors of the economy.
