Absa Bank Kenya more than doubled its dividend payout to Sh9.5 billion, which translates to Sh1.75 per ordinary share, as the net profit for the year ended December 31, 2024, increased by 28 percent to Sh20.9 billion.
The lender stated that the performance reflects its commitment to supporting businesses, individuals, and key economic sectors that contribute to Kenya’s economic progress.
Total revenue grew by 14% to Sh62.3 billion, fueled by a 15% increase in net interest income to Sh46.2 billion and an 11% rise in non-interest income to Sh16.1 billion. Customer deposits surged to Sh367 billion, while loans and advances settled at Sh309 billion.
Abdi Mohamed, the Managing Director and Chief Executive Officer (CEO) of Absa Bank Kenya, attributed the improved performance to the disciplined execution of strategic initiatives that support customer growth and reinforce the Bank’s reputation as a trusted brand committed to promoting a sustainable future.
“Our customers are at the heart of our success, and these results demonstrate their ability to adapt and grow,” Mohamed said. “We are dedicated to making Absa a modern and innovative bank that supports individuals and businesses of all sizes. Our goal is to provide solutions that expand access to finance, drive economic progress, and enhance the customer experience,” he added.
The bank expanded financial access in sectors such as manufacturing, trade, commercial property, affordable housing, and renewable energy, providing Sh180 billion in new gross lending. Additionally, the lender increased its agency banking network to 3,000 locations nationwide, with plans to grow to 17,000 outlets over the next two years.
Absa continued to invest in its digital capabilities, with 93.6% of transactions taking place on digital channels. It also empowered over 35,000 small enterprises and women-led businesses with crucial financial and non-financial skills.
During the review period, the bank advanced over Sh47 billion in sustainable finance and launched the Absa Kenya Foundation to accelerate its force for good agenda through entrepreneurship, education and skills, natural resource management, and health and humanitarian relief. Absa continued its investment in sports events such as the Magical Kenya Open and the Absa Sirikwa Classics, with total investments of Sh1.4 billion over the past decade.
The Bank’s 2024 performance has resulted in an increase in return on equity to 24.5%, supporting capital distribution to shareholders.
While ongoing transformational investments led to a 9% increase in costs, raising total costs to Sh23.5 billion, the Bank achieved a 300-basis point improvement in its cost-to-income ratio, now at 37.7%. Impairment improved by 200 basis points to Sh9.1 billion. The Bank’s total capital adequacy ratio stood at 20.4 per cent, and its liquidity reserve position was at 42.5%, well above the regulatory limits of 14.5% and 20%, respectively.
“We are confident in sustaining our momentum while delivering meaningful impact for our customers, colleagues, and stakeholders,” Mohamed said, adding that with a strong balance sheet and solid capital position, the lender is well-placed for the future.
