, NAIROBI, Kenya Mar 25 – Bank of Africa Kenya (BOA) has reported a 179.5 percent increase in profit before tax recording Sh260 million for the financial year ended December 31, 2009.
The bank posted Sh93 million in December 2008 signifying an impressive rejuvenation.
Commenting on the results, the bank’s Managing Director Kwame Ahadzi attributed the increase in profits to the bank’s strategy of focusing on organic growth and prudent lending practices, while remaining optimistic of the economy.
“In a year when global markets were shaken with the credit crunch, BOA focused at sectors least likely to be affected and our strategy paid off. The SMEs have also proved to be a strategic business development sector for our unique product offering,” Mr Ahadzi said.
The bank’s loan book recorded a 33.8 percent growth from Sh6.8 billion to Sh9.1 billion. Customer deposits grew by 42.5 percent to Sh12.4 billion from the previous Sh8.7 billion.
Total income went up 58 percent to reach Sh1.1 billion during year under review.
“A growing customer base has necessitated fast tracking our branch expansion and today we have 11 branches in Kenya. We plan to open seven more branches in 2010. It is our belief that the SME sector holds a lot of potential for the local economy and BOA is working towards empowering this sector to be more productive and thus contribute to the overall economic growth,” Mr Ahadzi said.
In December 2009, the bank opened its ninth branch on Monrovia Street. This is a unique branch in the Bank of Africa’s stable since it is meant to cater for the growing SME and retail segment in that section of the Central Business District of Nairobi with its long banking hours – between 9am and 8pm from Monday to Saturday.
The bank is part of the Bank of Africa Group, which has a presence in 12 African countries as well as a branch in France.
In June 2009 BOA shareholders injected Sh712 million bringing the total issued share capital to Sh2 billion.
“The additional capital will provide more support to branch expansion, entry into the retail and SME markets plus increase of our Group footprint in the other East African countries,” he said.