UBA Bank profit dips 90pc on high costs

Business Daily (Kenya) - - CORPORATE NEWS - James Ngun­jiri ngun­jirij@ke.na­tion­media.com

The Kenyan unit of UBA Bank’s half-year profit af­ter tax dropped 89.5 per cent weighed by in­creased op­er­at­ing ex­penses.

The bank, which op­er­ates as a sub­sidiary of the United Bank for Africa Plc, re­ported Sh7.1 mil­lion net profit in six months ended June com­pared to Sh68.1 mil­lion recorded in the first half of 2016.

UBA Bank was li­censed by the Cen­tral Bank of Kenya (CBK) in 2009, al­low­ing it to start op­er­a­tion from scratch.

The bank’s to­tal op­er­at­ing ex­penses stood at Sh293.6 mil­lion as of June 2017 com­pared to Sh273.7 mil­lion dur­ing the same pe­riod in 2016.

To­tal non-in­ter­est in­come de­rived from fees in­clud­ing de­posits and trans­ac­tion fees was at Sh142.4 mil­lion com­pared to Sh256.3 mil­lion in June 2016.

The lender re­ported a 39.4 per cent in­crease in Trea­sury se­cu­ri­ties to Sh2 bil­lion in June 2016 from the previous year’s Sh1.4 bil­lion. Cus­tomer de­posits in­creased by 93 per cent to Sh4.1 bil­lion from Sh2.1 bil­lion.

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