Absa Kenya Financial Results Show Strong 2024 Performance

Absa Bank Kenya has announced improved financial results for the year ended 31 December 2024, reporting a 28% increase in net earnings to Kshs. 20.9 billion.

This strong performance underscores the Bank’s dedication to supporting businesses, individuals, and key economic sectors that drive Kenya’s economic growth. In line with its commitment to delivering shareholder value, the Bank has declared a total dividend of Kshs. 9.5 billion, equivalent to Kshs. 1.75 per ordinary share, representing a 13% increase from the previous year.

During the review period, Absa focused on supporting its customers to navigate economic shifts and capitalise on growth opportunities by improving access to financing and strengthening support for critical sectors. The Bank’s customer loans and advances closed at Kshs. 309 billion.

The bank expanded financial access in notable sectors such as manufacturing, trade, commercial property and affordable housing, renewable energy, amongst others, providing Kshs.180 billion in new gross lending.

By investing in these key areas, Absa not only continued strengthening individual businesses but also catalysing job creation, infrastructure development, reinforcing its purpose of “Empowering Africa’s tomorrow, together … one story at a time.”

Additionally, customer deposits increased to Kshs.367 billion, reflecting customers’ growing confidence in Absa as a leading financial partner. In the period, total revenue grew by 14% to Kshs. 62.3 billion, supported by strong funded income of Kshs. 46.2 billion and an 11% increase in non-funded income to Kshs. 16.1 billion.

Absa Bank Kenya Managing Director & CEO, Abdi Mohamed, attributed the improved performance to disciplined execution of strategic initiatives that support customer growth while reinforcing the Bank’s reputation as a trusted brand committed to advancing a sustainable future.

“Our customers are at the heart of our success, and these results show their ability to adapt and grow. We are committed 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 improve the customer experience,” said Mr. Mohamed.

He further highlighted Absa’s ongoing investment in digital transformation to enhance customer experience and its commitment to employee growth through talent development, future skills investment, and well-being initiatives that have earned the Bank recognition as a top employer for several years.

Deepening financial access

In expanding financial access, Absa grew its agency banking network to 3,000 locations nationwide, with plans to scale to 17,000 outlets over the next two years. At the same time, the Bank strengthened its physical presence by opening new branches and relocating others to more strategic locations.

To further enhance its consumer banking unit, the Bank revamped its solutions for across the mass market and affluent segments, fostering a more inclusive financial ecosystem. The Bank continues to invest in its digital capabilities, with 93.6% of transactions taking place on digital channels.

Supporting SMEs and businesses remained a priority, with increased access to financing, market opportunities, mentorship, and digital solutions. As part of these efforts, the Bank empowered over 35,000 small enterprises and women-led businesses with essential financial and non-financial skills to help them navigate the challenging landscape.

Absa further strengthened its client partnerships through the ‘Invested in Your Story’ campaign, delivering personalised solutions, strategic insights, and proactive engagement to help its Corporate and Investment Banking clients achieve long-term success.

A Force for Good

During the year, Absa reinforced its long-term commitment sustainability, with over Kshs. 47B advanced in sustainable finance. The Bank also launched the Absa Kenya Foundation, committing to accelerate its force for good agenda through four key pillars: entrepreneurship, education and skills, natural resource management, and health and humanitarian relief.

Absa continued to make a lasting impact in sports by sustaining its investment in key events such as the Magical Kenya Open and the Absa Sirikwa Classics, reaffirming its long-term commitment to the sector and its far-reaching economic benefits, with a total investment of KES 1.4 billion over the past decade.

Other highlights include:

Return on Equity

The Bank’s 2024 performance has resulted in an increase in return on equity to 24.5%, which supports capital distribution to shareholders. The Board has recommended a total dividend of Kshs.1.75 per ordinary share, amounting to Kshs.9.5 billion, representing a 13% increase over the previous year.

Efficiency

While the ongoing transformational investments contributed to a 9% cost increase, bringing total costs to Kshs.23.5 billion, the Bank showed a 300-basis points improvement in its cost-to-income ratio to 37.7%.

Impairment

Impairment improved by 200 basis points to Kshs.9.1 billion compared to the same period last year, reflecting the Bank’s commitment to prudent risk management principles amidst balance sheet growth and a challenging operating environment. Despite this increase, the Bank continues to maintain a healthy portfolio quality and has established a sufficient coverage ratio to effectively minimize and manage potential future credit losses.

Capital & Liquidity

The Bank’s capital and liquidity ratios remain strong with sufficient headroom above the regulatory requirement. The Bank’s total capital adequacy ratio closed at 20.4% and liquidity reserve position at 42.5% against the regulatory limits of 14.5% and 20%, respectively. The strong position of Capital will support the Banks growth and investments agenda.

Outlook

In closing, Mr. Mohamed reaffirmed the Bank’s commitment to long-term growth, stating: ‘We are confident in sustaining our momentum while delivering meaningful impact for our customers, colleagues, and stakeholders. With a strong balance sheet and solid capital position, Absa is well-placed for the future.”