Absa Kenya, one of the leading banks in the country, has recently shared its financial results for the first half of 2024.
Let’s break down what these numbers mean and why they matter.
What are half-year results?
Half-year results are a snapshot of how a company is doing halfway through its financial year.
For banks like Absa Kenya, these results show how much money they’ve made, how many loans they’ve given out, and how much customers have saved with them.
Absa 2024 H1 in numbers
- Net profit surged by 28.9% to Sh. 10.7 billion
- Profit before tax increased by 27% to Sh. 15.3 billion
- Customer deposits grew by 6.2% to Sh. 353.3 billion
- Interest income rose by 29.3% to Sh. 32.6 billion
- Loans and advances to customers reached Sh. 361 billion
- Overall revenue increased by 16% to Sh. 31.8 billion
Despite a 12% increase in costs due to transformational investments, Absa Kenya managed to improve its cost-to-income ratio to 35.8%, demonstrating effective cost management.
The big picture
Absa Kenya has some good news to share. They’ve made more money than they did at the same time last year.
Here’s what stands out:
- Their profit after tax (the money left after paying all expenses and taxes) went up by 28.9%
- They now have more money saved by customers
- They’ve given out more loans to help people and businesses grow
Breaking down the numbers
Let’s look at some key figures:
1) Profit: Absa Kenya’s net profit rose to 10.7 billion Kenyan shillings. That’s a big jump from last year!
2) Customer deposits: People and businesses have put more money into their Absa accounts. The total is now 353.3 billion shillings.
3) Loans: The bank has lent out 361 billion shillings to help Kenyans achieve their goals.
4) Income: Absa is earning more from the interest on loans. This income went up by 29.3%.
What does this mean for customers?
When a bank does well, it often means good things for its customers:
- More loans might be available
- The bank can invest in better services
- There could be new products to help you manage your money
The bank’s plans
Absa Kenya isn’t sitting still. They have big plans:
“We’re going to open more agency outlets across Kenya. Our goal is to have 17,000 in the next two years,” says Abdi Mohamed, the CEO.
This means you might soon find an Absa service point closer to your home or business.
What about shareholders?
If you own Absa Kenya shares, there’s good news for you too. The bank will pay a dividend of 0.20 shillings per share.
Why these results matter
Strong bank results can be a good sign for the whole country. When banks lend more money, it can help:
- Businesses grow and create jobs
- People buy homes or start new projects
- The overall economy to improve
Looking ahead
Absa Kenya seems to be on the right track. They’re making more money while also helping Kenyans with their financial needs.
As they continue to grow, we might see more innovative services and support for local businesses.
Remember, if you’re thinking about banking with Absa Kenya or investing in their shares, it’s always a good idea to do your own research or talk to a financial advisor.
