Absa Bank Kenya has delivered an impressive financial performance for the year ending December 31, 2024, reporting a 28% year-over-year increase in net earnings to Ksh. 20.9 billion.

This remarkable growth has been attributed to the bank’s strategic focus on enhancing customer support, digital transformation, and expanding financial access across key sectors.

Reflecting its robust profitability, the bank declared a total dividend payout of Ksh 9.5 billion, translating to Ksh 1.75 per ordinary share, a 13% increase from the previous year.

Driving Growth Through Customer-Centric Strategies

Throughout 2024, Absa Bank Kenya prioritised customer empowerment by providing increased access to financing and strengthening support for critical economic sectors.

The bank’s customer loans and advances surged to Ksh. 309 billion, fuelled by Ksh. 180 billion in new gross lending directed toward key industries such as manufacturing, trade, commercial property, affordable housing, and renewable energy.

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Strengthening Digital and Physical Presence

A key driver of Absa’s success in 2024 has been its significant investments in digital transformation. With 93.6% of transactions now occurring on digital platforms, the bank has capitalised on the growing demand for seamless, technology-driven banking services.

This focus on digital channels not only enhances customer convenience but also improves operational efficiency.

In addition to its digital expansion, Absa grew its agency banking network to 3,000 locations nationwide, with ambitious plans to scale to 17,000 outlets by 2027.

This strategic move aims to deepen financial inclusion, especially in underserved regions. The bank also strengthened its physical presence by opening new branches and relocating others to more accessible and strategic locations.

Sustaining Financial Performance and Shareholder Value

Absa’s impressive financial performance is underscored by a 14% increase in total revenue to Ksh. 62.3 billion. This growth was supported by strong funded income of Ksh. 46.2 billion and an 11% rise in non-funded income to Ksh. 16.1 billion.

Customer deposits also grew to Ksh. 367 billion, reflecting increasing trust and confidence in the bank’s services.

A key metric highlighting Absa’s efficiency is the improvement in its cost-to-income ratio to 37.7%, despite a 9% increase in operating expenses to Ksh. 23.5 billion.

The bank’s disciplined execution of customer-focused strategies and prudent risk management resulted in a 200-basis point improvement in impairment costs to Ksh. 9.1 billion.

The return on equity (ROE) climbed to 24.5%, reinforcing Absa’s ability to generate sustainable returns for shareholders.

The Board’s decision to increase the dividend by 13% to Ksh. 1.75 per share further demonstrates the bank’s robust capital position and commitment to delivering shareholder value.

Empowering SMEs and Advancing Sustainability

Beyond its core financial performance, Absa Bank Kenya demonstrated a strong commitment to empowering small and medium-sized enterprises (SMEs) and advancing sustainability initiatives.

Over 35,000 SMEs and women-led businesses benefitted from financial support and skills training, reinforcing the bank’s role in fostering inclusive economic growth.

The ‘Invested in Your Story’ campaign played a significant role in strengthening corporate client relationships by offering tailored solutions and strategic insights.

In line with its sustainability agenda, Absa advanced Ksh. 47 billion in sustainable finance during the year. The launch of the Absa Kenya Foundation marked a significant step toward accelerating the bank’s “force for good” mission, focusing on four key pillars: entrepreneurship, education, natural resource management, and health.

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A Decade-Long Commitment to Sports and Community Development

Absa’s contributions extend beyond finance into the field of sports and community engagement. With a decade-long investment of Ksh. 1.4 billion in events like the Magical Kenya Open and the Absa Sirikwa Classics, the bank continues to support national sporting events that drive economic and social benefits.

Looking Ahead: Future Growth and Innovation

As Absa Bank Kenya looks to the future, the focus remains on delivering innovative financial solutions while supporting economic progress.

The planned expansion of the agency banking network, combined with ongoing digital advancements, positions the bank for continued growth and deeper market penetration.