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Absa profit rise 30 pc as HF back to profitability

Business
 Absa Bank Kenya interim Chief Executive Yusuf Omari. [Wilberforce Okwiri, Standard]

Absa Bank Kenya has reported a 30 per cent increase in profit for the nine months to September.

The lender said Tuesday the performance was on the back of increased lending to businesses.

The bank’s after-tax profit rose to Sh10.7 billion over the period, compared to Sh8.2 billion over a similar period last year.

Absa’s total interest income rose to Sh29.3 billion, which is 24.7 per higher compared to what it earned over the nine months to September 2021.

This was driven by loans advanced to customers that grew to Sh21.7 billion from Sh17 billion in 2021.

Interest earned from money loaned to the government through bonds went up marginally to Sh6.98 billion from Sh6.1 billion last year. Net interest income, on the other hand, was up 25 per cent to Sh23.3 billion.

“We are greatly inspired by the entrepreneurial spirit of Kenyans and are committed to continuing to provide them with the necessary financial and non-financial resources required for their businesses to thrive,” said Absa Bank Kenya interim Chief Executive Yusuf Omari at an investor briefing in Nairobi.

At the same time, HF Group has returned to profitability, reporting a Sh61.5 million net profit for the nine months to September from a loss of Sh569.9 million over a similar period last year. The lender attributed the performance to the diversified business model it recently embarked on.

The new model, HF Group, said resulted in its interest income growing to Sh3.16 billion over the nine months from Sh2.96 billion in 2021, aided by higher income from government securities that increased to Sh690.63 million, up from Sh479.89 million last year.

Interest income from loans advanced to customers was flat at Sh2.46 billion.

“Our business transformation strategy remains on track, with positive delivery in all areas. We have put in place an aggressive non-performing loans resolution that saw this reduce by six per cent within a year, paving way for an asset reallocation phase to support our growth in interest-earning assets and yields,” said HF Group CEO Robert Kibaara.

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