The bank attributes the performance to a 20 percent rise in customer loans which rose from Sh107 billion to Sh128 billion.
"Our results reflect our focus over the last year to 15 months. We got into business banking which services the SME segment; we've got into investment banking, we are into risk management solution for corporate, as well growing our core business of retail and corporate banking,"
Customer deposits grew seven percent to Sh148 billion from Sh138 billion. Retail and SME deposits account for 84 percent of total deposits with cost of funds remaining stable at 1.1 percent which is the lowest amongst the bank's listed peers.
Net interest income increased by five percent to Sh9.7 billion up from Sh9.2 billion in the same period last year on the back of growth in interest earning assets despite the pressure of declining interest rates.
Non-interest income dropped by five percent to Sh4.2 billion attributed to reduced foreign exchange income following stable currency market in the year.
Despite the improved performance, the bank will not be giving any interim dividend as it plans to inject Sh4 billion as capital.
"The board is not recommending the payment of an interim dividend in view of the new
Going into the second half the bank has revealed plans to set up a mortgage centre as well as an
"The bank is focusing on growing assets and liabilities, entrenching a customer centric strategy and increasing its visibility in order to gain a competitive advantage," Awori said.
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