Absa Bank Kenya has declared a total dividend per share of Sh1.75 for the financial year 2024. The payout includes a final dividend of Sh1.35 and an interim dividend of Sh0.40 that was issued earlier in the year. This marks a notable increase from the Sh1.55 distributed in the previous financial year.
The improved dividend comes on the back of a solid performance in Absa Bank Kenya FY 24. The bank posted a 28 percent jump in profit after tax, closing the year at Sh20.9 billion. Absa Bank Kenya’s dividend per share increase comes alongside a 27.6 percent rise in earnings per share, which now stands at Sh3.84.
Profit before tax also rose significantly to Sh29.7 billion, up 26 percent from the previous year. The growth was due to improved operational efficiency, which helped lift return on equity to 24.5 percent—well above its cost of capital.
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Total income grew by 14 percent to Sh62.3 billion, driven by both funded and non-funded income streams. Net interest income rose by 15.4 percent to Sh46.2 billion, buoyed by strong lending activity. Non-funded income also improved, up 11 percent to Sh16.1 billion, with the bank citing growth in areas such as payments, asset management, lending and brokerage services as key contributors.
Despite a slight contraction in its loan book—down 7.9 percent to Sh309.1 billion—Absa Bank Kenya remained active in supporting the economy, channeling funding to individuals and businesses across sectors. Customer deposits rose to Sh367 billion. Its cost-to-income ratio stood at 37.7 percent, even as operating costs went up by 9 percent.
The bank also reported a slight drop in loan impairment provisions, which fell by 1.6 percent to Sh9.1 billion. However, gross non-performing loans stood at Sh42.5 billion, representing 12.3 percent of total loans. Total assets declined by 2.6 percent to Sh506.5 billion, although the lender retained a solid capital position with a capital adequacy ratio of 20.47 percent.
Beyond the headline numbers, the lender continues to invest in community initiatives and business support programs. Over 35,000 small enterprises and women-led businesses have benefited from Absa’s financial and non-financial empowerment efforts, aimed at helping them navigate a tough operating environment. Additionally, Absa established the Absa Kenya Foundation (AKF), which focuses on enterprise development, education, natural resource management, and health.
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The bank has also continued to modernize its infrastructure through a Sh 3 billion technology upgrade strategy, aimed at strengthening its core banking and back-office systems. Additionally, Absa Bank Kenya expanded its agency banking network from 600 to over 3,000 locations by the third quarter of 2024.
The FY 24 results mark the second year of the bank’s five-year strategic plan, built around its broader purpose of “Empowering Africa’s tomorrow together, one story at a time.”
Jefferson Wachira is a writer at Africa Digest News, specializing in banking and finance trends, and their impact on African economies.