Absa Bank Kenya triples nine-month earnings to Ksh.8.2 billion

Absa Bank Kenya triples nine-month earnings to Ksh.8.2 billion

Absa Bank Kenya Plc Managing Director Jeremy Awori during a past function. PHOTO | COURTESY

  • The growth in profitability is attributable to lower costs which are primarily a factor of a trim to loan-loss provisioning costs by 55.3 per cent to Ksh.3.4 billion.
  • Similarly, staff costs have fallen to Ksh.6.8 billion from Ksh.7.5 billion.
  • At the same time, the bank has grown its total operating income by 3.4 per cent to Ksh.27.3 billion.

Absa Bank Kenya has tripled its nine months earnings through to September 2021 with net profit at Ksh.8.2 billion from Ksh.1.9 billion last year.

The growth in profitability is attributable to lower costs which are primarily a factor of a trim to loan-loss provisioning costs by 55.3 per cent to Ksh.3.4 billion.

Similarly, staff costs have fallen to Ksh.6.8 billion from Ksh.7.5 billion following a restructuring exercise which followed the lender’s transition from the Barclays brand last year.

At the same time, the bank has grown its total operating income by 3.4 per cent to Ksh.27.3 billion after a jump in both net interest income and non-interest funded income (NFI).

The bank’s net interest income has risen to Ksh.18.6 billion from Ksh.17.1 billion after a cut in interest expenses following the reduction in deposits and placements by other banking institutions.

Meanwhile, Absa’s NFI has grown by 4.8 per cent to Ksh.8.7 billion on higher fees and commissions on income on loans and advances.

During the three quarters covering the reporting period, Absa’s asset base has jumped to Ksh.411.4 billion with the balance sheet comprising Ksh.229.1 billion in net loans and advances to customers.

Following the rise in profitability, Absa’s earnings per share has improved to Ksh.1.52 from 35 cents in September last year.

The bank has nevertheless omitted the declaration of an interim dividend at this time but says it is confident to resume the payment of dividends at the end of the year.

“Whilst the pandemic continues to persist, we are seeing early signs of recovery and we’ve been working closely with our customers and other stakeholders in order to keep turning the wheels of our economy.  We are optimistic that we will continue to invest in innovation to enhance our customers’ banking experience,” said Absa Bank Kenya Plc Managing Director Jeremy Awori.