Absa Bank H1 profits up 29pc to Ksh 10.7B

Absa Bank Kenya PLC has reported Ksh 10.7 billion in net profit for the first six months of this year.

The 29pc profit after tax increase was driven by a double-digit increase in income.

Absa Bank Kenya marginally reduced loans and advances to customers to Ksh 316.4 billion, down from Ksh 317.9 billion during a similar period last year.

This could be due to a growing stock of gross non-performing loans that hit Ksh 39.4 billion, up from Ksh 32.2 billion a year ago.

The lender earned Ksh 27.4 billion in interest income from loans and advances to customers, up from Ksh 20.2 billion it made during a similar period last year.

The lender booked Ksh 4.3 billion in interest income from government securities, down from Ksh 4.7 billion it registered during a similar period last year.

In addition non-interest income rose 8pc to Ksh 8.8 billion.

Despite a reduction in the net loans and advances to customers, the lender marginally increased the loan loss provision from Ksh 5.16 billion to Ksh 5.17 billion on account of the Ksh 39.4 billion in gross non-performing loans and advances. ;

Just like was the case last year, Absa Bank Kenya has declared 20 cents per share in interim dividend pay-out to shareholders.