The net profit rose from Sh4.2 billion in June 2014 to Sh4.6 billion on the back of increased earnings from non-interest income lines.
Non-Interest income grew by 12percent to Sh4.8 billion from Sh4.3 billion supported by new revenue streams such as bancassurance.
“Total assets grew by 10 percent to Sh235 billion compared to Sh213 billion in the corresponding period in the previous year while impairments remain well controlled amounting to Sh586 million which is 0.9percent of the average gross advances-underscoring the quality of the asset book,” the bank’s Chief Finance Office Yusuf Omar said during investor briefing on Thursday.
Net interest income increased by 4percent to Sh10 billion, up from Sh9.7 billion in the same period last year.
“This was largely due to growth in interest earning assets despite the pressure of declining interest margins,” Omar added.
The board has recommended the payment of an interim dividend of 20 cents per share.
During the period under review, the bank’s investments included a mortgage centre, an asset finance centre of excellence, bancassurance and agribusiness to boost balance sheet growth.
“The launch of the Barclays Mortgage Centre in the first half is already yielding positive results for the bank. As at June, the value of mortgage applications recorded was almost double what the bank recorded during the whole of 2014. On its part, bancassurance although still in its nascence is showing great promise and we expect that it will be a major contributor of our non-funded income line within the next 2-3 years” said the bank’s Managing Director Jeremy Awori.