Absa Bank Kenya more than doubled its dividend payout to Sh9.5 billion, translating to Sh1.75 per ordinary share, as its net profit for the year ended December 31, 2024, surged to Sh 20.9 billion.

During the period, total revenue grew by 14 per cent to Sh62.3 billion, driven by a 15 per cent increase in net interest income to Sh46.2 billion and an 11 percent rise in non-interest income to Sh16.1 billion. Customer deposits rose to Sh367 billion, while loans and advances stood at Sh309 billion.

The Nairobi Securities Exchange (NSE)-listed lender expanded financial access across key sectors, including manufacturing, trade, commercial property, affordable housing, and renewable energy, disbursing Sh180 billion in new gross lending.

Upscaling regional outlets

Additionally, the bank scaled up its agency banking network to 3,000 locations nationwide, with plans to grow to 17,000 outlets over the next two years.

Absa Bank Kenya CEO Abdi Mohamed attributed the performance to the successful execution of strategic initiatives that support customer growth and reinforce the bank’s reputation as a trusted financial institution committed to sustainable development.

“We are dedicated to transforming Absa into a modern and innovative bank that caters to individuals and businesses of all sizes. Our goal is to offer solutions that enhance access to finance, drive economic progress, and improve the overall customer experience,” he said.

The bank continued investing in digital capabilities, with 93.6 per cent of transactions now conducted through digital channels. It also empowered over 35,000 small enterprises and women-led businesses by providing essential financial and non-financial skills.

Return on equity

During the review period, Absa Bank Kenya advanced over Sh47 billion in sustainable finance and launched the Absa Kenya Foundation to accelerate its corporate social responsibility agenda.

The bank also maintained its investment in sports, sponsoring events such as the Magical Kenya Open and the Absa Sirikwa Classics, with total investments amounting to Sh1.4 billion over the past decade.

The bank’s 2024 performance resulted in an increase in return on equity to 24.5 percent, reinforcing its ability to distribute capital to shareholders.

Despite a 9 per cent rise in costs due to ongoing transformational investments, bringing total costs to Sh 23.5 billion, the bank improved its cost-to-income ratio by 300 basis points to 37.7 percent. Impairment charges improved by 200 basis points to Sh 9.1 billion.

Absa is planning to unveil a Morgan Stanley index-linked fund Exchange-Traded Fund (ETF) in the second quarter of 2025. This signals a partnership aimed at providing new investment opportunities.

Morgan Stanley offers various index products, including the “Morgan Stanley Expanded Horizons Index SM.” This index is designed to provide diversified exposure to global equity and fixed-income asset classes while managing volatility.

The bank’s total capital adequacy ratio stood at 20.4 per cent, while its liquidity reserve position was at 42.5 per cent, well above the regulatory thresholds of 14.5 per cent and 20 per cent, respectively.

“We remain confident in sustaining our growth momentum while delivering meaningful impact for our customers, colleagues, and stakeholders,” Mohamed said. “With a strong balance sheet and solid capital position, the bank is well-positioned for the future.”