Absa Bank’s rewards shareholders who bet on resilient strategy with Kes9 billion dividend

Written by Oral East Africa

Absa Bank Kenya rewarded shareholders with a 13 percent increase in cash dividends to Kes9.5 billion after the lender reported a 24.5 percent growth in profits of Kes20.9 billion for the full year of 2024.

The lender’s support to customers to navigate the economic swings have offered Absa growing opportunities in a difficult time as the bank strategized to retain loan quality and diversify its revenue streams.

The bank expanded financial access in notable sectors such as manufacturing, trade, commercial property and affordable housing, renewable energy, amongst others, providing Kshs.180 billion in new gross lending.

In the period, total revenue grew by 14 percent to Kes62.3 billion, supported by strong funded income of Kes46.2 billion and an 11 percent increase in non-funded income to Kes16.1 billion.

“By investing in these key areas, Absa not only continued strengthening individual businesses but also catalysing job creation, infrastructure development, reinforcing its purpose of “Empowering Africa’s tomorrow, together … one story at a time,” said Absa Bank Kenya Managing Director & CEO, Abdi Mohamed.

Absa Bank Kenya Chief Financial Officer Yusuf Omari, Chairman, Board of Directors Charles Muchene, and Chief Executive Officer Abdi Mohamed during the release of Absa Bank Kenya's full-year 2024 financial results during which the bank announced a net profit of KES. 20.9 billion.

“The Bank’s 2024 performance has resulted in an increase in return on equity to 24.5 percent, which supports capital distribution to shareholders. The Board has recommended a total dividend of Kshs.1.75 per ordinary share, amounting to Kshs.9.5 billion, representing a 13% increase over the previous year,” he said.

Wezesha SMEs

Supporting SMEs and businesses remained a priority, with increased access to financing, market opportunities, mentorship, and digital solutions. As part of these efforts, the Bank empowered over 35,000 small enterprises and women-led businesses with essential financial and non-financial skills to help them navigate the challenging landscape.

Absa further strengthened its client partnerships through the ‘Invested in Your Story’ campaign, delivering personalised solutions, strategic insights, and proactive engagement to help its Corporate and Investment Banking clients achieve long-term success.

Absa Bank Kenya Chief Executive Officer Abdi Mohamed and Chief Financial Officer Yusuf Omari during the release of Absa Bank Kenya's full-year 2024 financial results where the bank announced an increased dividend payout of KES. 9.5 billion.

Absa grew its agency banking network to 3,000 locations nationwide, with plans to scale to 17,000 outlets over the next two years. At the same time, the Bank strengthened its physical presence by opening new branches and relocating others to more strategic locations.

outlook

Mr Mohamed said the improved performance was delivered through disciplined execution of strategic initiatives that support customer growth while reinforcing the Bank's reputation as a trusted brand committed to advancing a sustainable future.

He said the bank was investing in digital transformation to enhance customer experience and was committed to employee growth through talent development, future skills investment, and well-being initiatives that have earned the Bank recognition as a top employer for several years.

The Absa boss said he is confident in sustaining the momentum while delivering meaningful impact for customers, colleagues, and stakeholders.