In light of the challenging macro-economic environment in the country, Absa Bank Kenya PLC customers heavily relied on its lending products. According to its financial report for half year ended 30 June 2024, the bank revealed that loans and advances totaling Kshs. 316.3 billion were closed. Further, the Bank extended new gross loans worth Kshs. 64 billion to vital sectors of the economy.
To address cash crunch, the mobile loan platform Timiza, facilitated an additional Kshs. 12 billion in loans to start-ups and young entrepreneurs. Absa Bank intensified its sustainability initiatives, increasing ESG-linked lending to promote sustainable development. This resulted in Kshs. 16 billion in sustainable finance, including climate finance.
Due the prevailing economic conditions, the bank restructured loans totaling Kshs. 1.4 billion. Other loan products were revamped. For instance, La-Riba was relaunched to offer more innovative Shariah-compliant solutions. Also, the bank strengthened its Wezesha Stock platform for SMEs.
Absa Bank Kenya PLC Managing Director and CEO, Abdi Mohamed, said “Our focus is on diversifying revenue streams with scalable payment solutions, enhancing customer experience, and advancing financial inclusion through digital finance, digital savings, affordable housing, and SME offerings like Wezesha and Microinsurance,“
Loans were not the bank’s only offering to consumers. Absa embarked in the provision of non-financial skills towards supporting the growth ambitions of MSMEs and Women in Business, impacting more than 14,000 entrepreneurs in the period.
Absa Bank Growth in Profit
For the six months period, Absa Bank reported a profit after tax of Kshs.10.7 billion, a 29% increase over the same period last year. Total revenues climbed 16% to Kshs. 31.8 billion, driven by a 23% increase in funded income. Non-funded income rose 8.4%, reflecting both established revenue sources and strong growth from new initiatives. Customer deposits grew by 6% to Kshs. 353.3 billion.
“This commendable outcome, realized amidst a challenging macro-economic environment, underscores the efficacy of the Bank’s growth strategy and its unwavering dedication to providing relevant financial solutions,” Mr. Mohamed said.
