NAIROBI, Kenya May 26-Absa Bank Kenya has reported a net profit of Sh3billion for the quarter ending 31 March 2022, a 22 per cent rise compared to Sh2.4billion in a similar period last year.
The improved performance is attributable to greater revenues in the period with total income growing by 12 per cent to Sh9.9billion.
This was primarily driven by higher net interest income which went up by 15 per cent year on year to Sh6.9billion, as a result of increased lending.
Non-funded income grew by 6 per cent to Sh3billion driven by new innovations and continued digitization.
Announcing the results, Absa Bank Kenya Managing Director, Jeremy Awori, said the Bank’s strong performance reflects customers’ resilience in a challenging environment and points to improving macroeconomic conditions compared to the same period last year.
“The year has started with great momentum and we are encouraged by this performance which is a reflection of the tenacity, determination and resilience of our customers across our different business segments,” Awori said.
For the period, total assets increased by 14 per cent to Sh438 billion with growth mainly driven by customer lending. Customer deposits increased by 5 per cent to Sh270 billion.
The Bank said its investment in new businesses is bearing fruit with bancassurance, asset management and financial markets products contributing significantly to income growth in the period under review.
“Our capital position remains strong to continue supporting a robust balance sheet growth. We have also accelerated our investment towards enabling new growth areas, improving customer experience and driving operational efficiency,” Awori said.
The Bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement.
The Bank’s total capital adequacy ratio closed the quarter at 17 per cent and liquidity reserve position at 36.7 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively.
