× Business BUSINESS MOTORING SHIPPING & LOGISTICS DR PESA FINANCIAL STANDARD Digital News Videos Health & Science Lifestyle Opinion Education Columnists Moi Cabinets Arts & Culture Fact Check Podcasts E-Paper Lifestyle & Entertainment Nairobian Entertainment Eve Woman Travelog TV Stations KTN Home KTN News BTV KTN Farmers TV Radio Stations Radio Maisha Spice FM Vybez Radio Enterprise VAS E-Learning Digger Classified Jobs Games Crosswords Sudoku The Standard Group Corporate Contact Us Rate Card Vacancies DCX O.M Portal Corporate Email RMS

Commercial Bank of Africa’s half-year profit jumps 28pc to Sh2.4b

By Patrick Alushula | August 30th 2016
Commercial Bank of Africa CEO Jeremy Ngunze.

NAIROBI: Commercial Bank of Africa’s profit after tax in the first six months of this year has increased by 27.6 per cent to Sh2.37 billion.

Over a similar period last year, the bank had posted a net profit of Sh1.86 billion.

In financial results released yesterday, the bank’s half-year growth was driven by a 28 per cent increase in interest income to Sh13.14 billion. Its non-interest income, on the other hand, increased to Sh2.4 billion, accounting for 28.7 per cent of its total income.

The bank, which was the 10th most profitable lender in the year ended December 2015, now has a liquidity ratio of 43 per cent, which is more than twice the minimum statutory ratio.


Between January and June this year, its interest expenses rose by 16.7 per cent on account of increased customer deposits. The bank was holding Sh165 billion in customer deposits, an increase of Sh21 billion.

Its total operating expenses also increased by 49.2 per cent to hit Sh6.2 billion. This was propelled by loan loss provisions that more than quadrupled to Sh2.2 billion. Staff costs increased marginally (9.8 per cent) to Sh1.72 billion.

The group’s gross non-performing loans have risen to Sh11.7 billion, up 40 per cent when compared to a similar period last year, reflecting a trend that has hit the banking sector.

Insider loans and advances also increased to Sh6.4 billion from Sh5.6 billion. This means it increased its lending to employees and directors of the bank.

The group’s assets stood at Sh222 billion as at end of June this year, an increase of 9 per cent. Liabilities also increased 8 per cent to Sh199 billion on account of increased customer deposits.

During the period, shareholders’ funds rose to Sh23 billion. This is a 20 per cent rise when compared to what was reflected in the group’s statement of financial position over a similar period last year.

Share this story
Half of bank stocks touch 52-week low as investors lose Sh84.7b in two days
Investors in bank stocks are crossing their fingers that as the next trading session at the Nairobi Securities Exchange begins tomorrow, there will be no repeat of the last two sessions.
Absa Bank net profit for 3 months up 24pc
The performance was mainly driven by growth in interest income, particularly in the small and medium enterprises.