Absa Kenya, Linked To Kenyan Tycoon Baloobhai Patel, Posts 229.3 Million Profit In 2024

Absa Kenyas net profit jumped 81 to 229.3 million, fueled by strong interest and non-interest income growth, despite a shrinking loan book and forex income decline.

Revenue rose 14.1 to 481.1 million, with consumer banking contributing 48 and wholesale 52, signaling the banks diverse income streams and strategic business mix.

Baloobhai Patel, who holds a 1.03 stake, stands to benefit from Absas higher dividend payout, which has increased to Ksh1.75 per share.

Absa Bank Kenya, a leading Nairobi-based lender partly owned by Kenyan billionaire investor Baloobhai Patel, delivered strong financial results for the full year ended Dec. 31, 2024, with net profit soaring to Ksh29.7 billion 229.26 million. The growth was driven by solid performance in both net interest and non-interest income.

According to its earnings update , Absa Kenyas net profit jumped from Ksh16.4 billion 126.3 million in 2023 to Ksh29.7 billion 229.3 million in 2024, pushing its return on equity ROE to 24.5 percenthighlighting its ability to generate strong returns for shareholders.

Total revenue rose 14.1 percent to Ksh62.3 billion 481.1 million, up from Ksh54.6 billion 421.6 million the previous year. The consumer banking segment contributed 48 percent of revenue, or Ksh29.9 billion 230.8 million, while wholesale banking accounted for the remaining 52 percent at Ksh32.4 billion 250.1 million.

Corporate and business banking also posted strong results, with revenue rising 28 percent to Ksh14.3 billion 110.52 million and 19 percent to Ksh11.8 billion 91.19 million, respectively. These gains reflect the banks diversified revenue streams.

Net interest income grew 15.4 percent to Ksh46.2 billion 357.03 million, supported by a 19.3 percent jump in gross interest income. This was largely driven by a 20.6 percent rise in loan income and a modest 2.3 percent increase in earnings from government securities.