Absa Bank Kenya’s after-tax profit surged by 161 percent to Ksh.10.9 billion in its 2021 full-year results.
The strong performance is attributable to growth in interest income when it stepped up efforts to support businesses recover from the COVID-19 shocks.
Absa Kenya Managing Director, Jeremy Awori, said the Bank’s strong performance is a reflection of customers’ resilience in a challenging environment and points to improving macro-economic conditions.
“We have drawn inspiration from the resilience of our customers and are committed to continue providing them with the financial solutions they need to pursue their growth ambitions. We are also pleased to resume dividend payment to our shareholders demonstrating the strength and resilience of our business,” said Awori.
Total income increased by 7 percent to Ksh.36.9 billion, primarily due to higher interest income, which increased by 8 percent year on year as a result of increased lending.
The lender also posted an upward performance in total assets which gained 13 percent to Ksh.429 billion in the period under review driven by customer lending.
The Bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement.
Its total capital adequacy ratio closed the year at 17.5 percent and liquidity reserve position at 39.7 percent against the regulatory limits of 14.5 percent and 20 percent respectively.
The lender recommended a dividend of Ksh.1.1 per share, totaling to Ksh.6 billion final pay-out.