ABSA Records Sh8.3bn After Tax Profit In Half Year Financial Report

ABSA Bank Kenya has recorded a Sh8.3 billion in profit after tax translating to a 32 percent increase over the same period last year, supported by strong performance across main income streams.

The lender pumped Sh4 billion more into government papers as yields surged beyond 16 per cent to hit a portfolio of Sh35.3 billion up from Sh31.07 billion in the same period last year. 

At the same time, non-funded income increased by 26 percent to Sh8.1 billion, owing to positive outcomes from the ongoing revenue diversification.

Specifically, the Bank registered strong growth in forex income, fees and commissions, Asset Management, Bank assurance and stock brokerage, among others.

“In the face of a complex business environment, we are proud of the role we continue to play as an active force for good for our customers and the economy by ensuring continued access to finance, as evidenced by the growing balance sheet in the period under review,” said Abdi Mohamed, Absa Bank Kenya Managing Director.

Non-funded income in the period under review outpaced last year’s earnings aided by higher income from foreign exchange trading, fees and commissions, asset management, bancassurance and stock brokerage.

Even so, shareholders will not enjoy the yields as the board has decided to maintain dividends at Sh0.2 per share year-on-year. 

This will see investors take home Sh1.09 billion in interim dividends for the six-month period.

The listed lender reported profits after tax of Sh8.3 billion in the review period, supported by sustained double-digit revenue growth across key revenue streams.

Mohamed said that in the review period, operating expenses increased by 15 percent on account of new anchored plans to drive business growth.

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