NAIROBI, Kenya, March 16 – Absa Bank Kenya has announced a 161% increase in its net profit for the financial year ended December 31, 2021, which stood at Sh109 billion.
The bank attributed the rise to growth in interest income, particularly in the small and medium-sized business segment, which was supported to spur economic growth.
Total income rose 7% to 36.9 billion shillings, driven by higher interest income, which rose 8%.
The chief executive of ABSA Bank said growth was also supported by a significant reduction in impairments linked to improving macroeconomic variables.
“The 2021 results are validation that our growth, transformation and return strategy is working and delivering value to our stakeholders,” he said.
Client assets increased 12% to 234 billion shillings, total assets increased 13% to 429 billion shillings and client deposits increased 6% to 269 billion shillings.
“This supported strong after-tax profit growth of 161% and demonstrates a revamped business that is performing better than a pre-COVID19 period,” the bank said.
The bank’s operating expenses were reduced and resulted in a cost/income ratio of 45%.
“The efficiency ratio demonstrates the benefits realized from our transformational investments of over KES 5 billion in the recent past,” the bank said.
The bank resumed dividend payment, with the board recommending a dividend payment per share of Shs 1.1.
“The return on equity has recovered significantly to 19% and we are pleased to resume the payment of the dividend demonstrating the recovery of our business and the strength of our capital,” said a statement issued by the board of directors.