NAIROBI, Kenya, Aug 27 – Bank of Africa Kenya (BOA) has reported a 73 percent rise in pre-tax profit for the first half of 2009, posting Sh132 million for the period ending June 30, compared to Sh76 million the previous year.
BOA Managing Director Kwame Ahadzi attributed the growth to the bank’s expanding network which has boosted its customer base.
“The results were commendable despite the slow growth in the economy. Our prudent and measured expansion strategy has started paying dividends,” said Mr Ahadzi.
Total income went up in the period by 37 percent to Sh486 million from Sh355 million.
BOA started operations in Kenya in 2004 after taking over the assets and liabilities of Banque Credit Agricole Indosuez. It has expanded its network to eight branches; five in Nairobi and one each in Thika, Kisumu and Mombasa.
“Apart from our traditional business segments, we have also been focusing more on small and medium enterprises as well as retail customers. These new business segments have given us an additional push in revenue as a bank. We believe that we can sustain this growth this year and we are supported very strongly by our business strategy,” said Mr Ahadzi.
The bank’s loan book recorded a 20 percent growth from last year’s Sh5.7 billion to Sh6.9 billion. Customer deposits grew by 47 percent to Sh9.4 billion from the previous Sh6.4 billion.
“We consider the results a reciprocation of goodwill by our customers across the board and of the significant progress made over the years by being flexible to their needs,” said Mr Ahadzi.
The bank’s parent company, Groupe Bank of Africa has increased its footprint in East Africa by acquiring existing banks in Uganda, Tanzania and recently in Burundi. BOA Kenya owns 51 percent of BOA Uganda Ltd and 37 percent of BOA Tanzania Ltd. It also owns 20.2 percent of Banque de Credit de Bujumbura.
Groupe Bank of Africa has a representative office in Paris, France, as well as operations in 11 African countries namely; Benin, Burkina Faso, Ivory Coast, Madagascar, Mali, Niger, Senegal, Kenya, Tanzania, Uganda, and Burundi.
The group began its operations in 1982 in West Africa.