Absa Bank Kenya PLC has reported a robust financial performance for the year ended 31 December 2024, with net earnings rising by 28% to Kshs. 20.9 billion.
This growth underscores the bank’s dedication to supporting businesses, individuals, and key sectors driving Kenya’s economic development.
As part of its efforts to create long-term value for shareholders, Absa has declared a dividend of Kshs. 9.5 billion, equating to Kshs. 1.75 per ordinary share, an increase of 13% from the previous year.
During the review period, the bank focused on assisting customers to navigate economic challenges and seize growth opportunities. This was achieved by enhancing access to financing and providing targeted support for vital sectors. Absa’s customer loans and advances grew to Kshs. 309 billion.
The bank made significant strides in sectors such as manufacturing, trade, commercial property, affordable housing, and renewable energy, providing Kshs. 180 billion in new gross lending. Through these investments, Absa not only bolstered businesses but also contributed to job creation and infrastructure development, in line with its mission of “Empowering Africa’s tomorrow, together … one story at a time.”
Customer deposits surged to Kshs. 367 billion, reflecting increased confidence in Absa as a trusted financial partner. The bank’s total revenue rose by 14%, reaching Kshs. 62.3 billion, driven by strong funded income of Kshs. 46.2 billion and an 11% increase in non-funded income to Kshs. 16.1 billion.
Absa Bank Kenya’s Managing Director and CEO, Abdi Mohamed, attributed the bank’s positive performance to the disciplined execution of strategic initiatives designed to support customer growth while strengthening the bank’s reputation as a reliable brand committed to sustainable development.
“Our customers are at the heart of our success, and these results are a testament to their resilience and growth. We are committed to evolving Absa into a modern, innovative bank that supports individuals and businesses of all sizes. Our aim is to offer solutions that expand access to finance, foster economic progress, and enhance the customer experience,”
said Mr. Mohamed.
He also highlighted the bank’s ongoing investments in digital transformation and talent development, which have earned Absa recognition as a top employer for several years.
Expanding Financial Access
Absa significantly expanded its financial access by growing its agency banking network to 3,000 locations across Kenya, with plans to increase this number to 17,000 outlets over the next two years. The bank also strengthened its physical presence by opening new branches in strategic locations. To better serve its customers, Absa revamped its solutions for both the mass market and affluent segments, fostering a more inclusive financial ecosystem. Additionally, 93.6% of the bank’s transactions now take place via digital channels.
Supporting SMEs and businesses remained a priority, with Absa providing increased access to financing, mentorship, market opportunities, and digital solutions. The bank empowered over 35,000 small enterprises, including women-led businesses, with crucial financial and non-financial skills to navigate the challenging business environment.
Absa also reinforced its client partnerships through its “Invested in Your Story” campaign, offering tailored solutions and strategic insights to help its Corporate and Investment Banking clients achieve long-term success.
Sustainability Initiatives
In 2024, Absa demonstrated its commitment to sustainability by advancing over Kshs. 47 billion in sustainable finance. The bank also launched the Absa Kenya Foundation, focusing on four key pillars: entrepreneurship, education and skills, natural resource management, and health and humanitarian relief.
Absa continued its investment in sports, reaffirming its long-term commitment to the sector. The bank sustained its support for key events such as the Magical Kenya Open and the Absa Sirikwa Classics, contributing a total of Kshs. 1.4 billion over the past decade.
Key Financial Highlights
- Return on Equity: The bank’s return on equity increased to 24.5%, supporting capital distribution to shareholders. The Board recommended a dividend of Kshs. 1.75 per ordinary share, totaling Kshs. 9.5 billion, representing a 13% increase from the previous year.
- Efficiency: The bank’s cost-to-income ratio improved by 300 basis points to 37.7%, despite a 9% rise in costs, which reached Kshs. 23.5 billion due to ongoing transformational investments.
- Impairment: Impairment charges decreased by 200 basis points to Kshs. 9.1 billion, reflecting the bank’s strong risk management practices amid balance sheet growth and a challenging operating environment.
- Capital & Liquidity: Absa’s capital and liquidity ratios remain strong, with a total capital adequacy ratio of 20.4% and a liquidity reserve position of 42.5%, well above regulatory requirements.
Outlook
Looking ahead, Mr. Mohamed emphasized Absa’s commitment to continued growth, stating: “We are confident in maintaining our momentum while creating lasting value for our customers, employees, and stakeholders. With a strong balance sheet and robust capital position, Absa is well-positioned for the future.”
