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Absa Bank Kenya records 15% increase in Q3 2023 net earnings to Kshs.12.3 billion

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Absa Bank Kenya PLC has reported net earnings of Kshs.12.3 billion for the nine months ended 30 September 2023, a 15% increase over the same period last year, driven by double-digit revenue growth across core business segments.

For the period, the Bank recorded a 20% growth in revenue to Kshs.40.2 billion underscored by balance sheet momentum as it continued supporting individuals, business and corporate customers play their rightful role in the country’s economic growth and development. Loans and advances grew by 14% to Kshs.331 billion driven by secured and general lending. As a result, net interest income rose 26% to close at Kshs.29.3 billion. Customer deposits grew by 26% to Kshs.354 billion, supporting the loan book growth.

The Bank’s transformation and diversification agenda has resulted in resilience of operations and created a diversified revenue pool. New business lines such as Asset Management, Digital Finance, Bancassurance and stock brokerage delivered double-digit growth, positively contributing to the strong performance.  As such, non-interest income grew by 6% year-on-year to Kshs.10.8 billion.

Absa Bank Kenya PLC Managing Director Abdi Mohamed commended the results, delivered against a complex operating context, as a testament that the Bank’s strategy is yielding the desired results.

“We are inspired by the positive progress we are making in the execution of our strategy focused on building a modern-day consumer financial services business, becoming a market leader in business banking while building a leading corporate and investment bank that is committed to connecting client ecosystems. As such, we continue to support all our customer segments with the right financial and non-financial support to achieve their ambitions in the right way and these results are a clear demonstration of that commitment,” Mr. Mohamed said.

For the period, the Bank continued to invest in solutions that are relevant to customers with the introduction of a Diaspora Banking proposition, a revamped Digital Banking offering, among others.

Moreover, recognizing the pivotal role of Small and Medium Enterprises (SMEs) in driving growth across various sectors, the Bank reaffirmed its commitment to this sector by allocating a Kshs.100 billion fund for SMEs over the next three years. This initiative aims to support businesses across diverse value chains.

“To further strengthen SMEs capacity, we launched the Wezesha Stock digital platform, facilitating financing for retailers and distributors. Our dedication remains steadfast in providing SMEs with comprehensive support, encompassing both financial and non-financial services, to navigate the challenging business landscape,” Mr. Mohamed said.

The Bank remains cognizant of the opportunities and challenges presented by the operating environment and is confident in its commitment to continue supporting customers’ growth ambitions, while responding appropriately to the external environment backed by a strong capital position.

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