Absa Bank Kenya Plc has doubled its 2021 full year earnings with profit rising by 160 per cent in the calendar year to Ksh.10.9 billion from Ksh.4.2 billion a year prior.
The rise in the lender’s profitability is anchored on falling expenses and a steady growth in income streams across the 12 months.
Absa’s total operating income for instance has grown by seven per cent to Ksh.36.9 billion on the backdrop of an 8.1 and 5.4 per cent growth in net interest income and non-interest funded income (NFI) to Ksh.25.3 billion and Ksh.11.7 billion respectively.
At the same time, the bank has trimmed its total operating expenses by 16.7 per cent from Ksh.25.7 billion to Ksh.21.4 billion.
This is after trimming its cover for potential loan defaults by 47.8 per cent to Ksh.4.7 billion from Ksh.9 billion in December 2020 mirrorring the lender’s improving book quality.
The bank now has a cost to income ratio of 45 per cent as Absa leverage the switch towards digital solutions by its customers for services to further trim cost
Absa Bank Kenya earnings per share have subsequently improved to Ksh.2 from 77 cents a year before.
The notable jump in the bank’s profitability has seen the return of dividends with the board of Absa Bank Kenya recommending the payment of a Ksh.1.10 dividend per share (DPS) for a total shareholder pay of Ksh.6 billion which is payable on or before May 26.