Absa quarterly profit rises to Ksh.2.4 billion

Absa Bank Kenya has posted a 20 per cent quarterly profit growth with earnings to March rising to Ksh.2.4 billion from a flat Ksh.2 billion last year.

The notable earnings margins are largely attributable to rebounding income for the lender alongside a hold in operating costs in the period.

Absa booked a 7.1 per cent rise in net interest income to Ksh.6 billion after a 20 per cent trim to interest related expenses in the quarter.

Total interest income was nevertheless flat at Ksh.7.6 billion while non-interest funded income (NFI) fell slightly by 3.3 per cent to Ksh.2.9 billion from a flat Ksh.3 billion.

Nevertheless, Absa held down its overall operating expenses at Ksh.5.4 billion from Ksh.5.2 billion with provisioning for future bad loans slowing down.

The rate of loan-loss provisioning in the period stood at 27.3 per cent or a representative Ksh.1.4 billion from Ksh.1.1 billion last year.

During the period, Absa’s stock of gross non-performing loans (NPLs) stood unchanged at Ksh.17.3 billion.

Subsequent to the profit rise, Absa Bank Kenya earnings per share have increased to 45 cents from a lower 36 cents.

The bank now has an asset base of Ksh.348.1 billion to include Ksh.218.3 billion in net loans and advances to customers.

Absa Bank Kenya Managing Director Jeremy Awori has backed innovation to continue driving growth for the lender against continued shocks from the COVID-19 pandemic.

“In confronting the challenges posed by the COVID-19 pandemic, we have been greatly inspired by the ingenuity and underlying determination espoused by Kenyans to rise above the storm and keep going. In the period under review, we grew our business with some exciting propositions,” he said.