[quote=Ericsson]Absa Bank Kenya has reported a normalized profit after tax of Ksh2.3 billion for the first three months of 2020, a 13 per cent growth driven by an 8% growth in total income and a 5% drop in operating costs.
However, Absa notes that the normalized profit excludes an exceptional item of Ksh600 million, which relates to costs incurred in the transition to Absa.
Total Income increased to Ksh8.6 billion on the back of growth in non-interest income and interest income. Non-interest income was up 16 per cent year on year (YoY) due to growth in risk fees, fixed income trading, and risk-managed products. On the other hand, Absa attributes the 5 per cent YoY growth in interest income to growth in the lending book partially offset by the margin compression as a result of a drop in Central bank reference rate (CBR).
Absa costs for the quarter reduced 5 per cent YoY to Ksh4.1 billion largely due to cost-saving initiatives such as automation of the processing centres, investment in alternative channels, and branch rationalization programs.
Operating profit growth of 24% to Kes 4.5billion.
Total Assets recorded a 10% YoY growth to Ksh382 billion driven by growth in customer loans and investments in government securities. In this case, net customer loans and advances for the quarter were up 12 per cent to Ksh203 billion compared to a similar period last year. Loan categories recording growth include; general lending, trade loans, mortgage, and scheme loans.
Very Decent results... It was ready to Jump...but COVID messed the jump of a lifetime
In the period under review, customer deposits were Ksh239 billion, up 7% YoY.
Impairment increased by 75% compared to a similar period last year largely attributable to a few specific client names. The Bank’s average loan loss ratio increased to 2.2% (1.4% in 2019) and Net NPL ratio increased to 3.0% from 2.8% in 2019.
Capital & Liquidity– The total capital adequacy ratio was at 16.5% and liquidity reserve position at 37.9% against the regulatory limits of 14.5% and 20% respectively.
Normalized earnings are adjusted to remove one-time revenue and expenses and help business owners and financial analysts to understand a company’s true earnings from its normal operations.
https://kenyanwallstreet...ax-to-kshs-2-3-billion/[/quote]