Absa Bank Kenya Plc · NSEKE:ABSA
Absa Bank Kenya — FY2023 Earnings Presentation
27 slides from Absa Bank Kenya's earnings presentation, 2024
Slide 1: Absa Bank Kenya PLC Full Year 2023 Investor Briefing
Slide 2: Contents
Contents • Business Overview • Financial Performance • Strategic Outlook & Guidance
Slide 3: Business
Your story matters Business Abdi Mohamed Chief Executive Officer
Slide 4: Our strategy: re-anchored with significant year-1 milestones
FY 2023 Investor Briefing Our strategy: We have reviewed and re-anchored our strategy, and achieved significant year-1 milestones -Re-organized the business into core segments establishing a growth and diversification road map -Expanded our digital and physical distribution - 40% increase in digital
Slide 5: Operating environment: complex with addressable risks and opportunities
FY 2023 Investor Briefing Operating environment: While managing through a persistently complex operating environment with addressable risks and opportunities 1. Sustained momentum with growth in revenue by 19% achieving KES 50+ billion revenue for the first time. 2. Growth in franchise attractivenes
Slide 6: Our brand promise: becoming a trusted customer champion
FY 2023 Investor Briefing Our brand promise: We have entered a new horizon with our brand, positioning towards becoming a trusted customer champion We see and understand your side We get things done with ease and delight 6
Slide 7: For our customers: sustained innovation to expand market leading propositions
FY 2023 Investor Briefing For our customers: We have sustained innovation to expand our market leading propositions – mobile payment solution for diversified revenue between retail SMEs and wholesale bank enhancing our card growth in subsidiaries proposition diversifying our revenue remittances of t
Slide 8: For our customers: enabling aspirations in a tough operating environment
FY 2023 Investor Briefing For our customers: We are enabling customer aspirations while supporting them to navigate a tough operating environment 1. Continued supporting our customers with financial and non-financial skills to support their growth ambitions, we have committed KES 100 billion towards
Slide 9: For our customers: expanding our local and global reach
FY 2023 Investor Briefing For our customers: We are expanding our local and global reach Distribution reach Our diaspora proposition Large Africa footprint with global offices Expanding and Acquiring Kenyans diaspora customers from Three to outlets with our new propositions where customers can acces
Slide 10: For our colleagues: building a home of talent and diversity
FY 2023 Investor Briefing For our colleagues: We are building a home of talent and diversity Hires to support growth Colleague experience index Job satisfaction index 2021 2022 2023 2021 2022 2023 2021 2022 2023 colleagues promoted and seconded for career growth as we help them achieve their aspirat
Slide 11: For our ESG agenda: increased ESG-linked financing
FY 2023 Investor Briefing For our ESG agenda: We have increased our ESG-linked financing, promoting sustainable development Social and Governance and Environment Advocacy Economic Reporting advanced towards clean and renewable energy, billion of this supporting solar initiatives for off-grid communi
Slide 12: For our communities: delivering shared value
FY 2023 Investor Briefing For our communities: we are delivering shared value by transforming the communities we operate in computer labs in primary and secondary schools across the country learners empowered with digital literacy students empowered with Ready to Work skills, enabling them to earn l
Slide 13: Financial
Your story matters Financial Yusuf Omari Chief Financial Officer
Slide 14: Bolstered balance sheet: growth across all our businesses
FY 2023 Investor Briefing Bolstered balance sheet: Growth across all our businesses with diversification from a product and currency perspective Loans and Advances Deposits (In KES bn unless stated otherwise) YoY +18% YoY +19% 363 336 331 354 318 309 333 283 311 304 Dec 22 Mar 23 Jun 23 Sep 23 Dec 2
Slide 15: Significant momentum in revenue: diversified growth of 19%
FY 2023 Investor Briefing Significant momentum in revenue: Diversified growth of 19% with New Businesses materially contributing to the growth NII and NFI (In KES bn unless stated otherwise) 19% Markets 14.5 Corporate 6% Bank NFI 13.7 Consumer 40.0 NII 32.3 Business Bank 24% FY 2022 FY 2023
Slide 16: Sustained improvement in efficiency
FY 2023 Investor Briefing Sustained improvement in efficiency: Our efficiency remains better than plan despite increase in costs, we are sustaining investments to support future growth growth from inflation and investments Improved (In KES mn unless stated otherwise) 16% 21,649 18,659 Staff Cost 10,
Slide 17: Portfolio quality: sustaining quality while growing balance sheet
FY 2023 Investor Briefing Portfolio quality: Sustaining quality while growing balance sheet in a tough operating environment relative to growth Ratio (In KES bn unless stated otherwise) 336 14.8% +18% Industry 2 284 234 Customer 209 9.6% Assets 195 7.3% +43% FY 2022 FY 2023 Stock Stage 3 Stage 2 Sta
Slide 18: Accelerated top-line driven profitability and balance sheet growth
FY 2023 Investor Briefing Accelerated top-line driven profitability and balance sheet growth (In KES bn unless stated otherwise) P&L Indicators FY 2022 FY 2023 Comment Income 45.9 54.6 19% Net Interest Income 32 40 24% Non Funded Income 14 15 6% Operating Costs (18.7) (21.6) 16% Impairment (6.5) (9.
Slide 19: Cost-income-ratio improvement supporting better Return on Equity
FY 2023 Investor Briefing Cost-income-ratio showing marked improvement with profitability supporting better Return- on-Equity Indicators FY 2022 FY 2023 Cost to Income Ratio 40.6% 39.7% Marked improvement (90 bps) Increased due to the current macro-economic Loan Loss Rate 2.3% 2.8% environment Yield
Slide 20: Strong capital and liquidity ratios
FY 2023 Investor Briefing Strong capital and liquidity ratios: Providing capacity to support growth ambition and capital distribution Ratio Ratio Ratio 33.6% 33.1% 18.6% 18.1% 14.5% 13.6% Regulatory Minimum at Regulatory Minimum at Regulatory Minimum at FY 2022 FY 2023 FY 2022 FY 2023 FY 2022 FY 202
Slide 21: Guidance
Your story matters Guidance Yusuf Omari Chief Financial Officer
Slide 22: Guidance: strategy supports positive medium-term guidance
FY 2023 Investor Briefing Guidance: Our strategy supports a positive medium-term guidance Principal financial metrics …Medium term target Growth Double-digit revenue growth Efficiency and re-investment Capacity Cost-To-Income Ratio of low 40%’s Shareholder Returns Return on Equity above our Cost of
Slide 23: Recap
Your story matters Recap Abdi Mohamed Chief Executive Officer
Slide 24: Recap: the strategic roadmap ahead and the bank we are building
FY 2023 Investor Briefing Recap: The strategic roadmap ahead and the bank we are building On consumer banking: Profit After Build a scalable consumer banking business that is digitally enabled to drive Income reach, targeting a significant increase in profitable customers. Tax 54.6bn 16.4bn On busin
Slide 25: For our shareholders: incremental returns; final dividend of Kshs 1.35
For our shareholders: we are delivering incremental returns for our shareholders over the cycles 15% The Board has recommended a final Dividend Per Share 23% payout of Kshs. 1.35 to total Kshs 1.55 or Kshs 8.4 billion which is a 15% increase compared to last year
Slide 26: Disclaimer
FY 2023 Investor Briefing Disclaimer Forward-looking statements Certain statements in this document are forward looking that relate to, among other things, the plans, objectives, goals, strategies, future operations and performance of Absa Bank Kenya PLC . Words such as “anticipates”, “estimates”, “
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