Chase Bank records 59% profit after tax in third quarter
04 November 2014, 11:02
Nairobi - Chase Bank recorded a 59% growth in its profit after tax to KES1.8bn in September 2014 up from KES1.1bn in the same period last year.
The bank also disclosed that it had received KES1.3bn in new capital through a rights issue to its existing shareholders.
Announcing its third quarter financial results, the bank reported that the new capital will ensure compliance with capital requirements and with a stronger balance sheet, support future growth.
During the period under review, total operating income went up by 60%, attributed to the bank's expansion programme, investment in IT and scaling up its operations to meet customer needs and expectations.
Total assets also increased by 51% from KES62bn in the same period last year to just over KES93bn at the close of September 2014.
Overall customer deposits for the bank grew by 52% to close at KES72bn from KES47bn, recorded the previous year.
The bank reaped benefits from aggressive recruitment of SME and retail customers as well as the on-going branch expansion strategy in the counties.
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Further, the bank’s customer numbers have grown by 127% to close at 102,000 in September 2014, up from 45,000 in the same period in 2013. This has been driven by an aggressive sales drive from the second quarter of the year.
Commenting on the bank’s performance, Chase Bank Deputy Executive Officer Paul Njaga disclosed that the bank’s results have been mainly driven by the SME and agribusiness units of the bank.
“The bank also continued to focus on long term sustainable growth by focusing on investing and growing future income earning platforms through investments in IT, the branch expansion programme and raising more capital to support future growth in SME, agribusiness, youth and women,” he said.
The KES1.3bn capital boost follows a long-term debt facility of KES4bn from Dutch development bank FMO, in addition to a KES1.6bn agreement signed with Microfinance Enhancement Facility SA, SICAV-SIF to support SME lending in Kenya.
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