Absa Bank Kenya PLC

The Board of Directors of Absa Bank Kenya PLC is pleased to announce the unaudited group results
for the period ended 31 March 2020
BANK GROUP
March December March March December March March December March
2019 2019 2020 2019 2019 2020 2019 2019 2020
Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000 Shs '000
Unaudited Audited Unaudited Unaudited Audited Unaudited Unaudited Audited Unaudited
I STATEMENT OF FINANCIAL POSITION III OTHER DISCLOSURES

A ASSETS 1) Non-performing loans and advances

1 Cash balances (both local and foreign) 4,499,813 7,091,076 6,017,150 4,499,813 7,091,076 6,017,150 a) Gross non-performing loans and advances 15,415,660 13,518,692 17,334,399
2 Balances due from Central Bank of Kenya 17,578,406 21,716,447 16,307,091 17,578,406 21,716,446 16,307,091 b) Less: Interest in suspense 2,995,035 2,601,418 2,378,272
3 Kenya government and other securities held for dealing purposes 33,840,168 43,774,296 43,114,786 33,840,168 43,774,296 43,114,786 c) Total non performing loans and advances 12,420,625 10,917,274 14,956,127
4 Financial assets at fair value through profit and loss - - - - - - d) less: loan loss provisions 7,454,825 7,807,800 8,794,546
5 Investment securities: - - - - e) Net non performing loans(c-d) 4,965,800 3,109,474 6,161,581
a) Held to maturity: - - - - - f) Discounted value of securities 2,367,319 1,981,629 2,097,740
a. Kenya government securities - - - - - - g) Net NPLs (excess) / exposure (e-f) 2,598,481 1,127,845 4,063,841
b. Other securities - - - - - - 2) Insider loans and advances
b) Fair value through other comprehensive income (FVOCI) 82,693,442 78,785,265 81,850,333 83,110,015 79,221,471 82,267,415 a) Directors ,shareholders and associates 40,286 39,330 38,796
a. Kenya government securities 82,693,442 78,785,265 81,850,333 83,110,015 79,221,471 82,267,415 b) Employees 10,457,027 10,340,168 10,264,813
b. Other securities - - - - - c) Total insider loans and advances 10,497,313 10,379,498 10,303,609
6 Deposits and balances due from local banking Institutions 102,295 2,000,000 525,750 102,295 2,000,000 525,750 3) Off balance sheet items
7 Deposits and balances due from banking Institutions abroad 2,457,444 1,803,084 1,526,623 2,457,444 1,803,084 1,526,623 a) Letters of credit ,guarantees, acceptances 22,212,163 23,208,133 22,428,834
8 Tax recoverable - 292,160 - - 424,950 - b) Forwards, swaps and options 67,256,267 103,646,010 105,254,274
9 Loans and advances to customers(net) 180,498,811 194,894,941 202,959,640 180,498,811 194,894,941 202,959,640 c) Other contingent liabilities
10 Balances due from banking institutions in the group 9,142,333 9,203,788 13,139,854 9,142,333 8,702,992 12,648,041 Total contingent liabilities 89,468,430 126,854,143 127,683,108
11 Investment in associates - - - - - - 4) Capital strength
12 Investment in subsidiary companies 362,761 372,761 372,761 - - - a) Core capital 38,489,401 38,706,623 39,622,302
13 Investment in joint ventures - - - - - - b) Minimum statutory capital 1,000,000 1,000,000 1,000,000
14 Investment properties - - - - - - c) Excess / (Deficiency) 37,489,401 37,706,623 38,622,302
15 Property and equipment 3,167,197 2,889,187 3,349,411 3,167,497 2,889,401 3,349,609 d) Supplementary capital 5,040,122 7,601,251 7,886,246
16 Prepaid operating rental leases 45,486 35,299 35,299 45,486 35,299 35,299 e) Total capital 43,529,523 46,307,874 47,508,548
17 Intangible assets 745,775 538,836 453,966 805,246 617,994 532,486 f) Total risk weighted assets 263,256,798 277,812,947 288,089,488
18 Deferred tax 2,468,813 3,097,482 2,928,757 2,497,036 3,123,014 2,964,893 g) Core capital / total deposit liabilities 17.3% 16.3% 16.6%
19 Retirement benefit asset - - - - - - h) Minimum statutory ratio 8.0% 8.0% 8.0%
20 Other assets 7,900,116 7,614,578 9,111,535 7,683,582 7,686,827 9,271,976 i) Excess/(deficiency) 9.3% 8.3% 8.6%
21 TOTAL ASSET 345,502,860 374,109,200 381,692,956 345,428,132 373,981,791 381,520,759 j) Core capital / total risk weighted assets 14.6% 13.9% 13.8%
k) Minimum statutory ratio 10.5% 10.5% 10.5%
B LIABILITIES l) Excess/(deficiency) 4.1% 3.4% 3.3%
m) Total capital / total risk weighted assets 16.5% 16.6% 16.5%
22 Balances due to Central Bank of Kenya - - - - - - n) Minimum statutory ratio 14.5% 14.5% 14.5%
23 Customers' deposits 223,982,507 238,291,230 239,406,298 223,982,507 237,738,654 238,713,526 o) Excess/(deficiency) 2.0% 2.1% 2.0%
24 Deposits and balances due to banking institutions (local) 6,304,816 3,753,767 2,766,843 6,304,816 3,753,767 2,766,843 p) Adjusted Core Capital/Total Deposit Liabilities* 17.5% 16.8% 17.0%
25 Deposits and balances due to banking institutions (foreign) 940,340 329,655 2,129,849 940,340 329,655 2,129,849 q) Adjusted Core Capital/Total Risk Weighted Assets* 14.8% 14.3% 14.0%
26 Other money market deposits - - - - - - r) Adjusted Total Capital/Total Risk Weighted Assets* 16.7% 17.0% 16.7%
27 Borrowed funds - - - - - - 5) Liquidity
28 Balances due to banking institutions in the group 55,638,779 72,688,316 74,619,285 55,638,779 71,977,669 73,846,688 a) Liquidity ratio 41.1% 39.8% 37.9%
29 Tax payable 1,229,738 - 431,564 1,205,757 - 350,773 b) Minimum statutory ratio 20.0% 20.0% 20.0%
30 Dividends payable - - 4,888,382 - 4,888,382 c) Excess / (Deficiency) 21.1% 19.8% 17.9%
31 Deferred tax liability - - - - - -
32 Retirement benefit liability 5,424 - 5,126 5,424 - 5,126 Message from the Directors:
33 Other liabilities 12,257,992 14,966,818 16,388,249 11,295,816 14,992,630 16,533,186
34 Total liabilities 300,359,596 330,029,786 340,635,596 299,373,439 328,792,375 339,234,373 The statement of financial position, the statement of comprehensive income and the disclosures presented above
have been prepared from the financial records of the bank and its subsidiaries. These published statements are
C SHAREHOLDERS' FUNDS also available on the bank’s website www.absabank.co.ke and at its headquarters on Waiyaki Way, Nairobi.
35 Paid up/assigned capital 2,715,768 2,715,768 2,715,768 2,715,768 2,715,768 2,715,768
Following separation of the Absa Group from Barclays PLC and the launch of a new brand, the bank has made,
36 Share premium/(discount) - - - - - -
and will continue to make over the next two years, substantial investments in systems and in rebranding its
37 Revaluation reserves 671,353 275,528 305,421 673,747 281,247 306,767
operations. The bank will also over this transition period continue to acquire, at arm’s length, various services
38 Retained earnings/(accumulated losses) 36,673,782 35,990,855 37,823,328 37,582,817 37,095,138 39,051,008
from Barclays PLC. These separation costs have been disclosed separately as exceptional items on the statement
39 Statutory loan loss reserve - - - - - -
of comprehensive income above.
40 Other reserves 193,979 208,881 212,843 193,979 208,881 212,843
41 Proposed dividend 4,888,382 4,888,382 - 4,888,382 4,888,382 - Absa is responding to the evolving COVID-19 crisis
42 Capital grants - - - - - -
43 Total shareholders' funds 45,143,264 44,079,414 41,057,360 46,054,693 45,189,416 42,286,386 On 11 March 2020, the World Health Organization declared COVID-19 (novel coronavirus) a pandemic. This serious
44 Minority Interest - - - public health and economic crisis requires decisive and coordinated action from all spheres of society. The level of
45 Total liabilities and total shareholders funds 345,502,860 374,109,200 381,692,956 345,428,132 373,981,791 381,520,759 uncertainty relating to this crisis is high and unprecedented, and its impact on markets and the global economy is
already profound. This will have a negative impact on businesses globally including the banking industry in Kenya.
II STATEMENT OF COMPREHENSIVE INCOME The banking industry will feel the covid impact from April and most likely continue throughout the year.
1.0 INTEREST INCOME
Absa responded immediately to protect the health of our employees, customers, clients and other stakeholders.
1.1 Loans and advances to customers 5,415,186 22,544,646 5,468,471 5,415,186 22,544,646 5,468,471
Our response included measures to educate, protect and inform our employees about the COVID-19 virus,
1.2 Government securities 1,933,065 8,065,268 2,072,110 1,937,435 8,101,769 2,082,473
including heightened cleaning protocols in line with expert guidelines from health agencies. We have put in place
1.3 Deposits and placements with banking institutions 63,632 377,506 69,357 63,632 377,506 69,357
various measures for our customers ranging from waiving fees on digital transactions to providing loan relief
1.4 Other interest income - - - - - -
options, including loan repayment relief of up to twelve months. For our community, we have donated KES 50
1.5 Total interest income 7,411,883 30,987,420 7,609,938 7,416,253 31,023,921 7,620,301
million in support of the efforts by the government and other Kenyans of goodwill against the COVID 19
2.0 INTEREST EXPENSES
pandemic. These funds will be used for the acquisition of Personal Protective Equipment (PPEs), psychosocial
2.1 Customer deposits 1,760,848 6,466,845 1,538,216 1,760,848 6,454,616 1,528,850
support programs, business resilience training, and mentorship programs for SMEs to help them survive through
2.2 Deposits and placements with banking institutions 269,006 1,255,049 411,369 266,001 1,252,044 411,369
this difficult time.
2.3 Other interest expenses - 138,722 47,552 - 138,722 47,552
2.4 Total interest expenses 2,029,854 7,860,616 1,997,137 2,026,849 7,845,382 1,987,771 They were approved by the board on Wednesday 27th May, 2020 and signed on its behalf by:
3.0 NET INTEREST INCOME 5,382,029 23,126,804 5,612,801 5,389,404 23,178,539 5,632,530
4.0 NON - INTEREST INCOME Chairman Managing Director
4.1 Fees and commissions income on loans & advances 359,090 1,410,349 390,703 359,090 1,410,349 390,703 Charles Muchene Jeremy Awori
4.2 Other fees and commissions 989,684 4,125,135 902,201 1,160,116 4,710,388 1,125,756
4.3 Foreign exchange trading income 775,710 3,640,577 1,143,129 775,710 3,640,577 1,143,129
4.4 Dividend income - - - - - -
4.5 Other income 269,218 841,964 313,056 269,218 826,998 309,315
4.6 Total non-interest income 2,393,702 10,018,025 2,749,089 2,564,134 10,588,312 2,968,903
5.0 Total operating income 7,775,731 33,144,829 8,361,890 7,953,538 33,766,851 8,601,433
6.0 OPERATING EXPENSES
6.1 Loan loss provision 636,675 4,199,411 1,114,502 636,675 4,200,588 1,115,689
6.2 Staff costs 2,301,689 9,999,145 2,431,687 2,336,106 10,158,447 2,491,078
6.3 Directors emoluments 37,167 172,623 45,013 38,707 178,783 47,241
6.4 Rental charge 156,477 92,887 23,734 148,511 93,371 23,734
6.5 Depreciation on property and equipment 281,926 1,069,667 263,810 281,926 1,069,728 263,826
6.6 Amortisation charges 100,606 391,749 99,731 100,606 392,501 102,046
6.7 Other operating expenses 1,369,951 5,361,876 1,113,559 1,382,407 5,392,198 1,127,552
7.0 Total operating expenses 4,884,491 21,287,358 5,092,036 4,924,938 21,485,616 5,171,166
Profit before tax and exceptional items 2,891,240 11,857,471 3,269,854 3,028,600 12,281,235 3,430,267
8.0 Exceptional items 243,410 1,528,986 552,056 243,410 1,528,986 552,056
9.0 Profit after exceptional items 2,647,830 10,328,485 2,717,798 2,785,190 10,752,249 2,878,211
10 Current tax (1,134,948) (3,884,767) (728,269) (1,181,590) (4,021,267) (775,159)
11 Deferred tax 287,416 717,727 (155,942) 296,050 725,095 (147,184)
12 Profit after tax and exceptional items 1,800,298 7,161,445 1,833,587 1,899,650 7,456,077 1,955,868
13 OTHER COMPREHENSIVE INCOME
13.1 Gains/(losses) from translating the financial statements of - - - - - -
foreign operations
13.2 Fair value changes in FVOCI financial assets 203,853 (361,612) 42,704 205,414 (355,299) 36,457
13.3 Revaluation surplus on property,plant and equipment - - - -
13.4 Share of other comprehensive income of associates - - - -
13.5 Income tax relating to components of other comprehensive (61,156) 108,484 (12,811) (61,624) 106,590 (10,937)
income
14 Other comprehensive Income for the year net of tax 142,697 (253,128) 29,893 143,790 (248,709) 25,520
15 Total comprehensive income for the year 1,942,995 6,908,317 1,863,480 2,043,440 7,207,368 1,981,388

Earnings per share (Shs) 0.33 1.32 0.34 0.35 1.37 0.36
Dividends per share (Shs) - 1.10 - - 1.10 -

Absa Bank Kenya PLC company registration no. C18208, is regulated by the Central Bank of Kenya.