Absa Bank Kenya has recorded a Kes14.6 billion net profit for the full year ended 31 December 2022, representing a 34 per cent growth compared to the Kes10.6 billion posted in 2021.

The growth is attributed to sustained double-digit growth across all business segments as the bank increased lending to Small and Medium Sized Enterprises(SMEs).

Additionally, customer loans grew by 21 per cent to Kes284 billion while customer deposits rose by 13 per cent to Kes 304 billion further supporting balance sheet growth during the period.

Total revenues increased by 25 per cent to Kes45.9 billion, driven by a 28 per cent growth in net interest income to Kes32.3 billion.

 Absa Bank Kenya PLC Interim Managing Director Yusuf Omari noted the outstanding financial performance, saying it was achieved in the face of an unprecedented and complex operating environment characterized by the general elections, drought, and persistent Covid-19 pandemic impacts.

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Further, the lender’s non-funded income rose by 17 per cent to Kes13.7 billion, reinforced by strong growth from the asset management business, foreign exchange income, bancassurance as well as card operations.

The lender’s statutory operating expenses increased by 12 per cent to Kes25.1 billion from Kes23.1 billion despite the increased income.

Impairments increased by 38 per cent compared to a similar period last year mainly driven by one-off releases that were booked in 2021.

“Non-performing loan ratio is at 7.3 per cent and better than the industry average demonstrating the prudence of the bank’s lending decisions,” Omari said.

The Bank’s total capital adequacy ratio closed the year at 18.5 per cent and liquidity reserve position at 33.6 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively.

The lender has declared a dividend payout of Kes1.35 per share, a 23 per cent increase from last year, bringing the total dividend payout to Kes7.3 billion.