PAY ATTENTION: Work, Family, Education? Yes! Busy Kenyans, Learn Valuable Copywriting Skills with Tuko in Short, Focused Sessions. Enroll Today!
Muyela Roberto is a business journalist at TUKO.co.ke with over 9 years of experience in the digital media, offering deep insights into Kenyan and global economic trends.
Absa Bank has reported a KSh 10.7 billion profit after tax for the first half of 2024, marking a 29% increase from the KSh 8.3 billion recorded in the same period in 2023.
Absa Bank Kenya MD Abdi Mohamed attributed the strong performance to, among other factors, the stabilisation of the shilling against the dollar and manageable inflation at around 4.7%.
PAY ATTENTION: TUKO is in WhatsApp Channels now! Subscribe and read news in favourite messenger.
"We have seen increasing geopolitical challenges globally, impacting supply chains and shipping routes, leading to higher costs of goods. There is a significant increase in digitisation in corporate banking, with 84% of our CIB clients now digitally active," said Abdi Mohamed.
Finance Director Yusuf Omari highlighted the significant strides made by Absa's subsidiaries, including securities, asset management, and bancassurance, all of which recorded substantial growth.
However, Omari also pointed out that despite the growth in customer deposits and the balance sheet, many wholesale customers are opting for short-term commitments due to the current challenging business environment.
"We have seen a preference from customers, especially wholesale, to opt for short-term facilities and shy away from long-term borrowing. Our NPLs were at KSh 32b in 2023 and they are now at KSh 39b. The retail household has been hit hard. Manufacturing and real estate have also been affected," Omari added.
Absa will pay 0.2 per ordinary share to stakeholders in October 2024.
Commenting on the reduction of the benchmark lending rate by the Central Bank of Kenya from 13% to 12.75%, Absa MD Mohamed said:
"We will be able to lend more to our customers, and the actions taken by the MPC will have a positive impact. We see increased liquidity and stability in the FX market."
Proofreading by Mercy Nyambura Guthua, journalist and copy editor at TUKO.co.ke
Meet Miss Trudy: Quick Facts About The YouTuber Married To Wode Maya
Govt Declares Over 30 Vacancies In Different State Agencies With Tight Deadlines, How To Apply
Nithi Bridge Accident: Video Captures Final Moments Of Women, Kids Dancing Before Fatal Crash
Absa Bank MD Abdi Mohamed
Absa Bank Kenya Plc's H1 2023 Results Show 32% YoY Growth in Profit
Absa Bank Kenya Records Kshs 10.7 Billion Profit After tax in H1 2024