How one man exited Absa to join Ecobank after recording 13% growth in profit after tax to Sh6.3bn for half year period that ended in June 30, 2022
BY NBM Writer
Jeremy Awori, the outgoing CEO of Absa Bank Kenya, now has his sights set on the pan-African market as he heads to Eco Bank Group as chief executive, after his formal departure from Absa at the end of October. Mr Awori will replace Eco bank’s current CEO Ade Ayemi who will exit the lender after attaining the retirement age of 60 years.
“I am delighted to have led Absa Kenya to great commercial milestones while making a contribution to our society over the last decade. I am optimistic that Absa will reach greater heights in the future,” Awori said.
Mr Awori has hit enviable targets with Absa Bank Kenya during his time at the helm, with the lender reporting a profit after tax of Sh6.3 billion for the half-year period ended June 30, 2022, registering a 13% growth as compared to a similar period last year.
The improved performance was achieved on the back of double-digit revenue growth driven by accelerated lending as the economy continued to recover from the negative impact of Covid-19. As a result, the Bank registered a 20% growth in net interest income, mainly driven by asset growth across all segments.
Customer loans recorded a 19% growth to Shh262 billion significantly boosted by trade loans, mortgages, and scheme loans as well as asset financing. In particular, the lender has enhanced lending to Small and Medium Enterprises (SMEs) to assist them to reposition for growth, recognizing the critical role they play in job creation and economic growth. For the period, customer deposits grew by 7% to Sh282 billion further supporting balance sheet growth.
“We are pleased with this performance, which reflects our customers’ resilience and tenacity. It also validates the relevance of our brand to our customers’ needs and demonstrates the role we continue to play in enabling our customers to participate rightfully in the economic development of our nation,” Awori said in August when Absa’s half year earnings were announced.
In the period under review, the lender continued to invest in new and diverse business lines, which are significantly contributing to its growth. Non-funded income increased by 11% on the back of impressive growth in forex (FX) income, bancassurance and assets management fees – in March, the lender said investment in new businesses is paying off with Timiza, Asset management and Bancassurance recording positive growth.
The half year period also saw the enhanced investment in the lender’s innovation and transformation agenda, resulting in the launch of the instant online account opening platform as well as the introduction of Cash Deposit Machines across the country. Other transformation initiatives included the expansion of the agency banking platform, with over 655 Absa outlets commissioned.
Absa is now the second tier-1 bank to see a leadership transition coming few months after Joshua Oigara left KCB – Mr Oigara was replaced by Mr Paul Russo in May this year. Besides the challenges presented by tough operating environment characterised by rising inflation because of high fuel and food prices, geopolitical stabilities which are negatively impacting the local economy, it is interesting to note that Mr Awori has left a solid legacy.
Under “Women in Business Proposition”, the Absa has reached over 7,000 female entrepreneurs, providing them with skills, knowledge, and insights to continue expanding their businesses. In addition, the bank entered into a risk guarantee agreement with the African Guarantee Fund (AGF) to increase credit availability for local SMEs, including start-ups. It also partnered with Visa to launch a domestic and cross-border remittance service.
“Our capital position remains strong to continue supporting a robust balance sheet growth. We have also accelerated our investment towards enabling new growth areas, improving customer experience and driving operational efficiency,” he said..
