Absa Bank Kenya has today reported a profit after tax of Ksh. 14.6 billion for the year ended 31 December 2022. This is a 34% increase in comparison to the previous year.

Customer loans in the period grew by 21% to Ksh. 284 billion while customer deposits rose by 13% to Ksh. 304 billion. Total revenue went up 25% to Ksh. 45.9 billion, driven by a 28% growth in net interest income of Ksh.32.3 billion. This was supported by increased lending, including to SMEs and to key economic sectors such as manufacturing, energy, and agriculture.

Non-funded income expanding by 17% to Ksh.13.7 billion, reinforced by growth from our asset management business, foreign exchange income, bancassurance as well as card operations.

Speaking about the financial results, Absa Bank Kenya PLC Interim Managing Director Yusuf Omari said: “We are pleased with this outstanding financial performance, which was achieved in the face of an unprecedented and complex operating environment characterized by significant events such as the General Elections, drought, and persistent Covid-19 pandemic impacts.”

He added: “This set of results is a clear demonstration of our remarkable success in executing our Growth, Transformation and Returns Strategy where we outperformed in all the core measures. We have significantly transformed our business and set a strong foundation to outperform in the next horizon of our strategy.”

The bank has scaled its investment in digital with more than 92% of all transactions now taking place outside of the branch. Among others, the year resulted in the launch of the Digital Onboarding platform, an instant online account opening option, as well as the nationwide rollout of Cash Deposit Machines. Other initiatives for the year included the expansion of the agency banking platform, with 668 Absa outlets commissioned. Absa also partnered with Visa to launch a domestic and cross-border remittance service.

Additionally, the Bank has leveraged partnerships to complement its four-pronged approach of access to markets, access to information, access to mentorship and coaching, and access to sustainable finance. They were particularly targeted at Women in Business and SMEs customers, with more than 10,000 entrepreneurs engaged and empowered in the second half of the year through engagement tours.

The bank’s board of directors have declared a total dividend of Ksh. 1.35 per share. This is a 23% increase from last year, bringing the total dividend payout to Ksh. 7.3 billion.