UBA Bank profit dips 90pc on high costs
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.