The Absa Bank of Kenya has reported a profit after tax of Sh4.5 billion for the quarter ended March 31, 2023.
Through a statement, the bank said the profit represented a 51 per cent growth in comparison to a similar period last year.
"The impressive results were supported by a significant balance sheet growth, with the Bank’s total assets crossing the half-trillion mark, rising by 17 per cent to reach Sh515 billion," the statement read.
For the period, loans and advances increased by 28 per cent to Sh310 billion with the majority of this lending advanced to sectors driving economic growth and transformation, particularly Small and Medium Enterprises (SMEs).
"Customer deposits increased by 15 per cent to Sh311 billion, supporting further balance sheet expansion," part of the statement read.
Absa said the performance underlines the critical role the bank continues to play as a key partner for growth for its customers and the broader economy.
Absa Bank Kenya Managing Director Abdi Mohamed said the bank is pleased with this impressive financial performance which was delivered against a challenging business environment.
"It is a demonstration of the resilience of our business and serves as a good indication that our new strategy focused on building a bigger, better, and more inclusive financial institution that consistently meets the needs of its customers and creates shared value for all of its stakeholders is working," he said.
Further, the bank's revenue increased by 40 per cent to Sh13.9 billion, with net interest income increasing by 36 per cent to Sh9.4 billion.
The Bank’s diversification and multi-year transformative investments are yielding the desired results, with non-funded income growing by 49 per cent to Sh4.5 billion.
"New businesses have continued to diversify the bank’s revenue, with Absa Asset Management recording a 207 per cent revenue increase, Stock brokerage revenue increasing by 64 per cent, and Bancassurance revenue increasing by 42 per cent year on year."