The lender has attributed the growth to increased funding of core sectors fuelling Kenya's economic growth.

During the period, customer loans and advances increased by 18 per cent to Sh336 billion as the bank focused on supporting key economic sectors such as energy, telecommunications, manufacturing, trade, commercial property and affordable housing.

The lender also prioritised the needs of the SME sector, facilitating increased access to financing, access markets, mentorship, and networking opportunities, as well as driving digital enhancements to improve the customer experience.

Revenues increased by 19 per cent to Sh54.6 billion on the back of growing customer assets as well as faster growth of new business lines such as bancassurance, asset management, and digital finance.

Interest income increased by 24 per cent to Sh40 billion, while non-funded income grew by six per cent to Sh14.5 billion despite a challenging macros environment.

Speaking while announcing the results, Absa Bank Kenya CEO Abdi Mohamed said the impressive performance truly reflects the growth and resilience of customers who have continued to give the bank a chance to contribute to their growth story as their financial partner.

"It is also a demonstration that our strategy is effective in creating value for all our stakeholders while delivering long-term growth in a dynamic operating environment,'' Mohamed said. 

He added that "with 2023 being the first year of implementation of our five-year strategy, this performance gives us a strong launch pad from which we will execute our set priorities.”

Through the review year, Absa remained the primary partner for its customers and a proponent of a savings culture among Kenyans, with customer deposits increasing 19 per cent to Sh363 billion.

Total assets ended the year at Sh520 billion, up from Sh477 billion the year before, representing a nine per cent increase.

Shareholder value Based on the improved profitability, the board has proposed to shareholders a final total dividend payout of Sh7.3 billion, translating to Sh1.35 per ordinary share.

Taken together with the interim dividend of Sh0.20 per share paid in October 2023, the total dividend for the year amounts to Sh8.42 billion, representing a 14.8 per cent increase compared to the preceding year.

The bank’s statutory operating expenses increased by 16 per cent as the bank executed transformational and people investments.

It has leveraged these investments to accelerate revenue growth which has led to a significant improvement in cost-to-income ratio to 39.7 per cent.

Impairment increased by 43 per cent compared to the same period last year in line with principles of prudence in risk management given balance sheet growth and tough operating environment.

Despite this increase, portfolio quality remains better than the industry.

In addition, Absa has ensured an adequate coverage ratio which is also better than the industry levels to ensure future credit losses are minimised and better managed.

Absa Kenya's capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement.

The bank’s total capital adequacy ratio closed at 18.1 per cent and liquidity reserve position at 31.1 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively.