On March 15, 2022, Absa Bank Kenya PLC announced a significant growth in its Profit after Tax, reaching Kshs.10.9 billion for the year ended 2021. This represents a remarkable 161% increase compared to the same period the previous year.
The Bank's strong performance was driven by growth in interest income, which was supported by efforts to help businesses recover from the negative effects of the Covid-19 pandemic and reposition for growth, particularly in the Small and Medium Enterprises segment.
According to the Bank's report, all its business units remained profitable, registering growth on key lines. Total income increased by 7% to Kshs.36.9 billion, primarily due to higher interest income, which increased by 8% year on year as a result of increased lending. Non-funded income grew by 5% driven by innovations and continued digitization.
Jeremy Awori, Absa Kenya Managing Director, attributed the Bank's strong performance to customers' resilience in a challenging environment and improving macroeconomic conditions. He stated, 'We have drawn inspiration from the resilience of our customers and are committed to continuing to provide them with the financial solutions they need to pursue their growth ambitions.'
The Bank's investment in new businesses, such as Timiza, Bancassurance, and Asset Management, contributed to growth in the year under review. The Bank also increased lending and business support to women entrepreneurs under its Women in the Business proposition and continued investing in digitalization and automation to improve customer experience.
Other highlights of the Bank's performance include an improvement in the cost to income ratio of 45% from 48% in the same period, a reduction in impairment by 48% compared to the similar period last year, and strong capital and liquidity ratios.
