Absa Bank has announced a significant 29 percent increase in profit after tax, reaching Sh10.7 billion for the first half of 2024. This growth reflects the bank’s successful strategy in boosting revenue across its various business segments and meeting the increasing demand for soft loans, despite a challenging economic environment characterized by reduced consumer spending.
Customer deposits also rose by 6 percent, closing at Sh353 billion. This increase was driven by a notable rise in funded income, which amounted to Sh23 billion by the end of the reporting period. Net interest income expanded by 20 percent to Sh23 billion, while non-interest proceeds grew by 8 percent to Sh8.8 billion.
The impressive results underscore the effectiveness of Absa’s growth strategy and its commitment to providing financial solutions that meet the diverse needs of individuals, enterprises, and communities. Mohamed highlighted the bank’s dedication to supporting customers and its role in contributing to the growth of the Kenyan economy.
In addition to the strong financial performance, Absa’s board has approved an interim dividend of Sh0.20 for shareholders. This move demonstrates the bank’s commitment to delivering value to its investors while continuing to support its growth initiatives.
The bank’s financial statement also revealed that loans and advances reached Sh316.3 billion, following Sh64 billion in new gross lending to critical sectors. This lending activity is crucial for supporting key areas of the economy and furthering economic development.
Absa’s results illustrate its resilience and strategic focus on customer satisfaction and economic support. The bank continues to play a vital role in driving growth and providing essential financial services in Kenya.
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