Absa raises dividend payment 14.8% to Sh8.4Bn
Shareholders of Absa Bank Kenya are set to reap bigger returns on their investments following the bank’s Board decision to raise dividends to Kes8.4 billion, marking a 14.8 percent increase for the period ended December 2023.
This move comes on the back of a strong performance by the bank, which reported a 12 percent increase in profit after tax to Kes16.4 billion, largely driven by a 19 percent jump in revenue that closed the year at Kes54.6 billion.
The bank’s assets also grew significantly, by 18 percent, to close the period at Kes520 billion. This growth was largely driven by strong gains in consumer, business banking, and corporate business segments.
Absa Bank Managing Director, Abdi Mohamed, attributed this impressive performance to various initiatives that helped drive credit uptake by individuals and businesses, which surged by 18 percent to Kes336 billion.
Abdi expressed his satisfaction with the bank’s performance, stating that it reflects the growth and resilience of their customers, who have chosen Absa Bank as their financial partner.
He also highlighted the effectiveness of the bank’s strategy in creating value for stakeholders while delivering long-term growth in a dynamic operating environment.
He further noted that Absa Bank financed sustainability-related initiatives such as smart agriculture, green energy, and green construction to the tune of Kes22 billion in the period under review.
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Mobile lending platform Timiza
Additionally, Kes21 billion was disbursed to start-ups and youth through Absa Bank’s mobile lending platform, Timiza. The bank also saw a 25 percent increase in digitally active customers in 2023, indicating a growing trend towards self-service channels.
In a bid to expand its reach, Absa Bank has revamped its service offering targeting the diaspora and now has offices in key financial centers including New York, USA, London UK in Europe, and Beijing, China.
In 2023, the bank also witnessed a 19 percent increase in customer deposits, reaching Kes363 billion, as transactions outside the branch network surged to 98 percent due to rising investments in technology.
Absa Bank’s Chief Finance Officer, Yusuf Omari, highlighted the bank’s efforts to diversify its revenue streams, resulting in impressive growth across new business lines such as bancassurance, asset management, and Timiza.
This improved performance led to an impressive return on equity of 23.7 percent, demonstrating the bank’s commitment to enhancing value for its shareholders.
