Absa Bank Kenya reported a 14 per cent growth in overall revenue to Kshs. 62.3 billion, driven by a strong funded income of Kshs. 46.2 billion and an 11 per cent increase in non-funded income to Kshs. 16.1 billion.
Absa concentrated on assisting its clients in navigating economic changes and seizing expansion prospects during the review period by enhancing financial access.
Kshs. 309 billion was the closing balance of the Bank’s customer advances and loans. With Kshs.180 billion in new gross lending, the bank increased financial access in a number of noteworthy industries, including manufacturing, trade, commercial real estate and affordable housing, and renewable energy.
By making these crucial investments, Absa not only kept bolstering individual companies but also sparked the development of infrastructure and jobs, reaffirming its mission to “Empower Africa’s tomorrow, together … one story at a time.”
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Absa Bank customers’ deposits rose to KShs. 367 billion
Furthermore, customer deposits rose to Kshs. 367 billion, demonstrating the rising trust that consumers have in Absa as a top financial partner.
Abdi Mohamed, Managing Director and CEO of Absa Bank Kenya credited the enhanced performance to the methodical implementation of strategic plans that foster client expansion and strengthen the Bank’s standing as a reliable company dedicated to promoting a sustainable future.
“Our customers are at the heart of our success, and these results show their ability to adapt and grow. We are committed to making Absa a modern and innovative bank that supports individuals and businesses of all sizes. Our goal is to provide solutions that expand access to finance, drive economic progress, and improve the customer experience,” said Mr. Mohamed.
He also emphasised Absa’s continuous investment in digital transformation to improve the customer experience and its dedication to staff development through future skills investments, talent development, and well-being programs, which have helped the Bank become known as a top employer for a number of years.
Absa Bank expands agency banking network to 3,000 sites
Absa expanded its agency banking network to 3,000 sites around the country in an effort to increase financial access, and it intends to grow to 17,000 locations in the next two years. By establishing new branches and moving existing ones to more advantageous locations, the Bank simultaneously increased its physical footprint.
The Bank redesigned its offerings for both mass market and affluent segments in order to further improve its consumer banking division and promote a more inclusive financial ecosystem.
With 93.6 per cent of transactions occurring through digital channels, the Bank is still investing in its digital capabilities. With easier access to funding, market opportunities, mentorship, and digital solutions, helping SMEs and companies remains a top priority.
Absa Bank equipped 35,000 women-led businesses with financial and non-financial skills
As part of these initiatives, the Bank equipped more than 35,000 women-led firms and small businesses with critical non-financial and financial skills to assist them in dealing with the difficult environment.
By providing individualised solutions, strategic insights, and proactive involvement to help its Corporate and Investment Banking clients achieve long-term success, Absa further reinforced its client partnerships through the “Invested in Your Story” campaign.
Absa strengthened its long-term commitment to sustainability during the year, advancing more than Kshs. 47 billion in sustainable finance.
Absa Kenya Foundation
With the establishment of the Absa Kenya Foundation, the Bank pledged to advance its force for good agenda through four main pillars: health and humanitarian aid, education and skills, entrepreneurship, and natural resource management.
With a total investment of KES 1.4 billion over the last ten years, Absa has demonstrated its long-term commitment to the sports industry and its wide-ranging economic benefits by continuing to invest in important events like the Absa Sirikwa Classics and the Magical Kenya Open.
Return on equity increased by 24.5%
As a result of the Bank’s 2024 performance, its return on equity increased to 24.5 percent, supporting the distribution of money to shareholders.
A total dividend of Kshs. 1.75 per common share, or Kshs. 9.5 billion has been recommended by the Board. This represents a 13 per cent increase over the previous year.
The Bank demonstrated a 300 basis point improvement in its cost-to-income ratio to 37.7 per cent, despite the continued transformative investments contributing to a 9 per cent cost rise, bringing total expenses to Kshs. 23.5 billion.
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Impairment improved to Kshs. 9.1 billion
Compared to the same time last year, impairment improved by 200 basis points to Kshs.9.1 billion, demonstrating the Bank’s dedication to sound risk management practices in the face of balance sheet expansion and a difficult operating environment.
The Bank has maintained a good portfolio quality and an adequate coverage ratio to effectively minimise and manage potential future credit losses in spite of this increase.
The Bank has enough headroom above the regulatory need, and its capital and liquidity ratios are still robust. In contrast to the required restrictions of 14.5 per cent and 20 per cent, respectively, the Bank’s overall capital adequacy ratio closed at 20.4 per cent and its liquidity reserve position at 42.5 per cent. The Bank’s expansion and investment program will be supported by Capital’s strong position.
“We are confident in sustaining our momentum while delivering meaningful impact for our customers, colleagues, and stakeholders,” Mr Mohamed concluded, restating the Bank’s dedication to long-term growth. Absa is in a good position going forward thanks to its robust capital position and balance sheet.