Absa Bank Kenya PLC reported a Ksh3 billion profit after tax for the quarter ending March 31, 2022, reflecting a 22% year-on-year rise. The results align with the bank's five-year strategy emphasizing growth, transformation, and returns, according to Managing Director Jeremy Awori.
Total revenue reached Ksh9.9 billion, up 12% from the previous year, with net interest income surging 15% due to increased lending activity. Non-funded income grew 6% through digital innovations, while total assets rose 14% to Ksh438 billion. Customer deposits also increased by 5% to Ksh270 billion.
Awori highlighted the bank's focus on digital transformation, noting 90% of transactions now occur via alternative channels. The cost-to-income ratio improved to 45% from 46%, and impairment charges declined 15%, with the average loan loss ratio dropping to 2% from 3%.
The bank maintained strong capital and liquidity positions, with a capital adequacy ratio of 17% and liquidity reserves at 36.7%, exceeding regulatory requirements. A Ksh2 billion investment in 70 projects aims to enhance operational efficiency and customer experience.
