Get real time updates directly on you device, subscribe now.
Absa Bank Kenya PLC has today reported a 24% increase in profit after tax to Kshs. 2.4 billion for the period ending 31 March 2021, compared to a similar period last year.
This resilient performance was mainly driven by growth in interest income particularly in the small and medium enterprises segment as the bank continued to support businesses to recover from the impact of COVID-19.
Despite the raging effects of the pandemic, all business units remained profitable and resilient, registering growth on key lines with all businesses registering growth year-on-year.
“In confronting the challenges posed by the COVID-19 pandemic, we have been greatly inspired by the ingenuity and undying determination espoused by our fellow Kenyans to rise above the storm and keep going. In the period under review, we grew our business with some exciting propositions including the Absa She Business Account through which we have committed to impact over 1 million women owned and led businesses over the next 5 years.
“This account is tailor made for the needs of the woman entrepreneur and offers access to affordable finance, access to mentorship and coaching, access to information and training, as well as access to trade opportunities within the local and international markets.
One of the outstanding offerings under this proposition is that women businesses will access unsecured lending of up to Kes 10 million, payable for 5 years for existing borrowers, and Kes 7 million for new borrowers payable in 4 years and a grace period of 60 days to be granted on a case by case basis,” said Jeremy Awori, Managing Director, Absa Bank Kenya.
Total income grew by 2% to Kshs 8.8 billion mainly driven by the growth of interest income, which was up 6% year on year on the back of increased lending. Well managed costs were well maintained, dropping by 1% year on year.
Net Customer loans was up 8% to close at Kshs.218 billion driven by key focus products namely General lending, trade loans, mortgage and scheme loans that recorded strong growth year on year.
Interest income grew 6% from prior year largely because of growth in the lending book; though partially offset by margin compression as a result of drops in Central Bank Rate (CBR) whose benefits the bank passed to customers as a responsible lender.
Customer deposits grew by 8% to Kshs.257 billion with transactional accounts making up 66% of the total deposits.
Financial Fortune is a digital financial news website and print business magazine published in Nairobi by Fortune & Transit Publishers Ltd and covers the financial services sector through news, views and extensive people coverage since 2018.