Absa posts 22% increase in net profits

KAMPALA - Absa said Tuesday its full-year profit after tax rose 22% to sh178b in the twelve months ending December 2024 supported by improved revenue income for the review period.

Speaking to journalists during the presentation of the financial report in Kampala on April 15, Michael Segwaya, the bank's chief finance officer, said the lenders' total revenues increased by nearly 15% to sh546b as they expanded digital services and loan portfolio.

The subsidiary of South Africa’s Absa Group attributed the growth to higher non-funded income, which jumped 21%, and an 11% rise in net interest income.

Part of the Absa management team. (Credit: Ali Twaha)

“Balance sheet growth is driven by increased active customer base and working capital support to strategic sectors of the economy. Growth in profitability driven by strong revenue growth and increased transaction volumes,” he said.

Customer deposits climbed 11.5% to sh3.18 trillion while its loan book expanded 12.7% to sh1.99 trillion. Interim managing director David Wandera said the bank prioritised lending to trade (26% of loans), personal/household sectors (27%, up from 24% in 2023), agriculture (10%), and manufacturing (9%).

“Our total lending to the trade sector stood at sh1,048 billion with a 30% share of all loans advanced. The agriculture sector stood at sh594b, taking up 17% of all loans advanced; personal loans were worth sh317b,” he said.