Chase Bank records 59 per cent profit after tax in third quarter

NAIROBI: Chase Bank received has recorded a 59 per cent growth in its profit after tax to Shs1.8 billion in September 2014 up from Shs1.1 billion in the same period last year.

The bank also disclosed to have received Shs1.3 billion 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 percent, attributed to the Bank's expansion program, investment in IT and scaling up its operations to meet customer needs and expectations.

Total assets also increased by 51 per cent from Shs62 billion in the same period last year to just over Shs93 billion at the close of September 2014.

Overall customer deposits for the bank grew by 52 per cent to close at Shs72 billion from Shs 47 billion, 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.

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 performance, Chase Bank Deputy Executive Officer Paul Njaga disclosed that the Bank results have been mainly driven by the SME and Agribusiness units of the Bank.

Mr Njaga noted that the Bank also continues 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.

The Shs1.3 billion capital boost follows a long term debt facility of Shs4 billion (US$45.2M) from Dutch Development Bank - FMO in addition to a Shs1.6 billion (US$18.4M) agreement signed with Microfinance Enhancement Facility SA, SICAV-SIF to support SME lending in Kenya.