ABSA Bank Kenya has announced an 84.8 percent year on year drop in the first half of the year’s Earnings per Share to Sh0.11.
This was weighed down by a 228.1 percent increase in loan loss provisions to Sh5.4 billion. and rebranding costs of Sh1.7 billion.
Pre-provision operating earnings rose 9.2 percent year on year on the back of 4.2 percent growth in Non-interest revenue to Sh5.5 billion, 2.5 percent rise in Net interest income and 2.8 percent cut in operating expenses before provisions and rebranding costs.
Customer deposits grew 8.3 percent while the loan book edged up 8.2 percent mostly in 1Q20.
Investment in government securities rose 13.3 percent year on year as the sector shies from risky asset allocation.
As expected, the bank does not recommend an interim dividend as historically has been the case.
