Absa Bank Kenya posts 12% jump in full-year earnings

Absa Bank Kenya has announced a robust set of numbers in its full-year earnings, with net profits reaching 16.4 billion shillings and dividend payouts increasing by 14.8 per cent. The CEO of Absa Bank Kenya PLC, Abdi Mohamed, discussed the key drivers behind this success and outlined the bank's growth strategy for 2024 in an exclusive interview with CNBC Africa. Mohamed attributed the profit growth to a 19% increase in total revenue, along with significant improvements in both assets and liabilities. These positive results reflect the successful execution of the bank's strategic initiatives and demonstrate the efficacy of its overall business strategy. The CEO highlighted the importance of delivering sustainable growth across short, medium, and long-term horizons to provide competitive returns to shareholders while investing in the future of the organization. Absa Bank Kenya's commitment to maintaining a balance between current earnings and future growth is integral to its value proposition and investor appeal. Despite operating in a challenging environment in 2023, Absa Bank Kenya managed to expand its loan book by 18% while keeping non-performing loan levels below 10%, well below industry averages. This achievement underscores the bank's prudent risk management practices and disciplined approach to lending. By offering tailored financial solutions and training programs, particularly for SME customers, Absa Bank Kenya aims to enhance the credit quality of its portfolio and mitigate default risks effectively. Looking ahead to 2024, the bank remains focused on supporting key sectors such as agriculture, tourism, manufacturing, and trade, which have shown significant growth potential. With a GDP outlook that points to positive trends in these sectors, Absa Bank Kenya is poised to capitalize on emerging opportunities and provide tailored financial products to meet the evolving needs of its clients. As the CEO expressed confidence in the bank's ability to navigate challenges, he emphasized the importance of monitoring inflationary pressures and maintaining a close relationship with customers to ensure sustainable growth amid a dynamic economic environment. Overall, Absa Bank Kenya's strong financial performance in 2023 sets a solid foundation for continued success in 2024, driven by a strategic focus on sustainable growth and prudent risk management.