Absa Bank Kenya has announced its interim financial results for the first half of 2023, which indicated a remarkable performance marked by increased earnings and strategic initiatives aimed at driving economic growth and recovery in the country.
The bank reported a net earnings figure of Sh8.3 billion for the six-month period ending June 30, 2023, signifying an impressive 32 percent surge compared to the same period in the previous year. This growth was underpinned by robust revenue expansion across key revenue streams, maintaining double-digit momentum.
Abdi Mohamed, Managing Director of Absa Bank Kenya PLC, emphasised the bank’s commitment to fostering economic resilience and growth in Kenya during an investor and media briefing session on the financial results.
He highlighted how the bank’s steadfast dedication to its customers in an unpredictable business landscape has contributed to its impressive performance.
Mohamed stated, “Absa is at a critical point of a transformative era, with our new strategy presenting an all-round approach towards delivering enhanced social and economic transformation in the societies in which we operate.”
The bank’s proactive approach to innovation was also evident in its introduction of new solutions, such as ‘mobi tap,’ a rapid and secure payment solution enabling small businesses to accept card-based payments through mobile phones, thereby enhancing convenience for customers.
In recognition of its commitment to enhancing both economic and social aspects of Kenyan society, Absa Bank Kenya PLC has undertaken initiatives such as sponsoring events like the ‘Magical Kenya Open Golf Tournament’ and the ‘Absa Kip Keino Athletics Championships’. The bank has also made strategic community investments aimed at improving lives and livelihoods in various regions.
While the bank’s performance was overall impressive, the interim results also indicated a 74 percent increase in impairment compared to the previous year, in line with the bank’s risk management principles amidst a challenging operating environment. Nonetheless, the bank’s portfolio quality remains higher than industry standards, and it has established a robust coverage ratio to mitigate potential future credit losses.
Absa Bank Kenya PLC’s capital and liquidity ratios remain robust, with a capital adequacy ratio of 17.7 percent and a liquidity reserve position of 28.7 percent, both well above regulatory requirements of 14.5 percent and 20 percent, respectively.
Operating with a presence in 38 counties, supported by 83 branches, 208 ATMs, and robust internet and mobile banking platforms, Absa Bank Kenya PLC’s vision revolves around empowering Africa’s future by fostering economic growth and improving lives.
By Stephannie Ndunge and Okal Kevin
