Absa Kenya reports 34% rise in annual profit
Kenya’s Absa bank has defied a tough economic environment to post a 34 per cent jump in profits in the bank’s full year earnings. The bank is optimistic of a solid year as economic activity continues to pick up in East Africa’s largest economy. CNBC AFRICA spoke to Yusuf Omari for more.
Wed, 15 Mar 2023 15:57:44 GMT
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AI Generated Summary
- The bank's financial results reveal significant growth in revenue, cost management, and profit after tax, underpinned by a well-diversified business portfolio.
- Absa Kenya's focus on SME lending, agency banking, and strategic funding initiatives highlights its commitment to supporting economic growth and financial inclusion in the region.
- The bank remains optimistic about the economic outlook in East Africa, despite challenges such as geopolitical risks and inflationary pressures, and continues to collaborate with stakeholders to address key challenges.
Absa Kenya, a prominent bank in East Africa, has reported a remarkable 34% rise in annual profits, defying the tough economic environment in the region. The bank's full-year earnings reflect a positive trend, with key financial indicators showing significant growth in revenue, cost management, and profit after tax. Yusuf Omari, a representative from Absa Kenya, emphasized the importance of top-line growth and highlighted the impressive performance across diverse business sectors. The corporate business segment stood out with a remarkable 37% revenue growth, showcasing the bank's well-diversified operations. A pivotal transformation project has been underway at Absa Kenya, contributing to sustained momentum and positive outlook for the upcoming half-year results. Despite prevailing challenges such as geopolitical risks and inflationary pressures, the bank remains optimistic about economic stability and growth prospects in the region. Strategically addressing the dollar shortage issue and collaborating with the government on import control measures, Absa Kenya aims to mitigate the impact of external factors on its operations. Customer deposits have increased by 13% to reach 303 billion shillings, demonstrating confidence in the bank amidst economic uncertainties. To further enhance these figures, Absa Kenya plans to stimulate economic activity and facilitate business growth by providing strategic funding to various sectors. SME lending is highlighted as a key focus area, given its significant contribution to GDP and employment in the country. The bank's emphasis on agency banking has shown promising results, with over 700 agents currently active and plans to expand this network to over 10,000 agents by 2023. This strategic initiative aims to enhance financial inclusion and cater to the diverse needs of SMEs in the region, fostering economic development and stability. In conclusion, Absa Kenya's strong financial performance and strategic initiatives position it well for continued growth and resilience in the dynamic East African market.
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