Absa Bank Kenya increased its net profit by 30% in the nine months ending September, owing to increasing loan income. In the review period, the company’s net earnings were Ksh10.7 billion, up from Ksh8.2 billion the previous year.
Total interest revenue increased by 24.6 percent to Ksh29.3 billion, while loan book increased by 26.3 % to Ksh289.4 billion. The bank also profited from increased investments in government debt instruments, which have seen their rates rise in recent months. Absa’s earnings were further bolstered by a 16.4% increase in non-interest revenue to Ksh10.1 billion, which the bank ascribed to new business lines and foreign currency earnings.
Absa increased its provisions for bad debt by 47.9% to Ksh 5 billion, adding to a 22.4 % increase in operational expenditures to Ksh18.3 billion. The bank stated that the increased provisions are related to one-time releases recorded last year, and that its default rate remains lower than the sector’s overall.
