BOA posts 101pc profit growth

November 25, 2013
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The bank’s Managing Director Kwame Ahadzi said the improved performance is attributed to the bank’s increased branch network which stood at 27 branches as at September 2013/FILE
The bank’s Managing Director Kwame Ahadzi said the improved performance is attributed to the bank’s increased branch network which stood at 27 branches as at September 2013/FILE
NAIROBI, Kenya, Nov 25 – Bank of Africa Kenya (BOA) has reported increased pretax profits of 101 percent to Sh851 million for the nine months to September 2013 compared to the previous year.

The bank’s Managing Director Kwame Ahadzi said the improved performance is attributed to the bank’s increased branch network which stood at 27 branches as at September 2013.

The bank’s balance sheet grew from Sh44.5 billion in September 2012 to stand at Sh51.7 billion in September 2013, a 16 percent growth.

This growth is backed by an increase in net loans and advances by 20 percent from Sh26.9 billion in September 2012 to Sh32.2 billion during the same period this year.

Customer deposits grew from Sh30.6 billion in September, 2012 to Sh36.1 billion in September 2013.

Going forward, the bank expects further growth in its customer deposits supported by the growing branch network in line with the bank’s retail growth strategy.

Net interest income for the nine-month period grew by 50 percent to Sh1.6 billion up from Sh1billion during the same period last year.

The increase is due to increased interest income from the growing loan book as well as interest expense which decreased by 27 percent attributed to declining interest rates in the market compared to the previous year.

“We are satisfied with the Bank’s growth and profitability and expect to close the year strongly” Ahadzi said.

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