HomeNewsPoliticsAbsa Kenya Q1 profit up 24pc to Sh2.4bn

Absa Kenya Q1 profit up 24pc to Sh2.4bn

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Absa Kenya Q1 profit up 24pc to Sh2.4bn


Absa

Absa branch on Muindi Mbingu Street in Nairobi. PHOTO | EVANS HABIL | NMG

Alushula

Summary

  • The lender’s bottom-line was boosted by the absence of one-off Sh552 million that was booked in the previous quarter as part of separation costs from London’s Barclays Plc.

Absa Bank Kenya #ticker:ABSA net profit for the first quarter of the year has increased 23.7 per cent, driven by growth in net interest income and end of separation costs from Barclays Plc.

Net profit for three months to March 2021 hit Sh2.42 billion from Sh1.95 billion in the similar period last year.

Absa’s net interest income rose by six per cent to Sh5.96 billion in line with increased lending as the loan book expanded by 7.5 per cent to Sh218.3 billion.

The lender’s bottom-line was boosted by the absence of one-off Sh552 million that was booked in the previous quarter as part of separation costs from London’s Barclays Plc.

Absa Kenya in 2019 spent Sh1.5 billion on rebranding followed by another Sh3.2 billion last year, contributing to a 44 per cent fall in net profit to Sh4.16 billion —the lowest in over 14 years.

The rebranding was completed last year, bringing to an end the restructuring costs.

The lender has also saved Sh190 million on staff costs, following the completion of staff voluntary exit programme in the fourth quarter of last year.

Absa Bank last year spent Sh1.06 billion to lay off staff in the coronavirus environment, closing the year with a 161 drop in headcount.

The lender closed the year with 1,991 employees from 2,152 in the previous year as it moved to deepen the switch to digital channels.

Absa in February said it had seen a 40 per cent fall in branch activities as people sought alternative channels such as mobile and online banking to lower risk of contracting the virus. 



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88E70B70D1Aa46A497A524Eca9E5C16A?S=96&D=Mm&R=G Absa Kenya Q1 Profit Up 24Pc To Sh2.4Bn
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