Absa bank's assets cross Sh500 billion as Q1 profits soar

The bank attributed the performance to its robust balance sheet growth, increased loans and advances, and strategic focus on sectors driving economic growth and transformation.

This achievement highlights the resilience and effectiveness of the bank's strategies in a challenging business environment.

Absa’s total assets surpassed the half-trillion mark, reaching Sh515 billion.

Absa Kenya office in Nairobi, Kenya Pulse Live Kenya

This represents a 17% increase, indicating the bank's strong financial position and growth trajectory.

The bank's loans and advances also witnessed substantial growth, reaching Sh310 billion, reflecting a 28% increase.

A significant portion of these loans was extended to sectors that drive economic growth and transformation, particularly Small and Medium Enterprises (SMEs).

The bank said that by providing accessible financial services and tailored solutions, the bank played a vital role in fueling the growth of these enterprises.

Customer deposits witnessed a substantial increase during the quarter, reaching Sh311 billion, representing a growth rate of 15%.

Absa’s revenue grew by 40% to Sh13.9 billion. The bank's net interest income also experienced a notable growth of 36%, reaching Sh9.4 billion.

These positive results highlight the effectiveness of the bank's diversified revenue streams and strategic investments.

The bank's non-funded income grew by 49% to Kshs.4.5 billion, showcasing the success of its multi-year transformative investments.

Notably, new businesses within the bank, such as Absa Asset Management, stock brokerage, and bancassurance, contributed significantly to revenue growth.

Under the leadership of Managing Director Abdi Mohamed, the bank successfully executed its strategy, focused on building a bigger, better, and more inclusive financial institution.

This strategy aims to consistently meet the needs of customers and create shared value for all stakeholders.

During the period under review, Absa enhanced its digital onboarding platform, providing customers with a more rewarding savings account.

The lender also expanded its mortgage offering to give customers 100% financing with a repayment period of 25 years.

Absa Kenya CEO Abdi Mohamed speaks during an event at Strathmore University on May 22, 2023 Absa Kenya CEO Abdi Mohamed speaks during an event at Strathmore University on May 22, 2023 Pulse Live Kenya

Through the Wezesha Biashara drive, the bank offered financial and non-financial support to help SMEs navigate the challenges they face in a dynamic business environment.

Absa Bank Kenya PLC revamped its agri-business proposition by offering specialized financial services and tailored solutions to farmers and agribusinesses.

To support the growing China-Africa trade and strengthen its international business products, the bank relaunched its China desk to facilitates trade and investment between China and Kenya.