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Kenya

Imperial Bank posts 35pc rise in profit

NAIROBI, Kenya, Mar 21 – The Imperial Bank has registered a 35 percent growth for its full year 2011 results posting a profit after tax to Sh1.1 billion compared to Sh885 million for the same period in 2010.  

Speaking while releasing the full year results, Imperial Bank’s Managing Director, Abdulmalek Janmohamed attributed the growth to a jump in customer deposits following an increase in retail focus as well as an aggressive marketing campaign carried out by the bank in 2011.

“Imperial Bank has grown its branch footprint and increased its strength in the retail segment,” said Janmohamed. 

The bank’s total operating income for 2011 stood at Sh3.41 billion representing a 25 percent increase from Sh2.73 billion in 2010 with interest income going up by 54 percent from Sh2.8 billion to Sh4.3 billion for the same period.

The bank’s loan book posted a 34 percent growth from Sh11.2 billion in the previous year to Sh14.9 billion in 2011 while customer deposits grew by 40 percent to Sh19.2 billion. There was also an increase in interest rates last year from 19 percent in 2010 to 25 percent in 2011.

According to Janmohamed, the bank had a competitive pricing mechanism which saw foreign exchange income grow by 75 percent from Sh168 million to Sh295 million. 

The bank further added that its success was driven by prudent risk management practices which led to a 25 percent decline in loan loss expenses to Sh95 million.

It also adds it will continue focusing on efficient client service delivery.             

Imperial Bank recently opened its 17th branch in Nairobi and its third outlet in Nakivubo, Kampala, Uganda.

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