Kenya'n Banks Post Super Profits
The latest data from the Central Bank of Kenya (CBK) indicates that profits before tax for most Kenyan banks grew by 15.6 per cent in the first six months of the year, beating last year’s 15.5 per cent growth by a thin margin. The industry’s overall growth rose to Ksh71.03 billion at the end of June 2014 compared to Ksh61.47 billion the previous year. The CBK attributes this to higher earnings in the second quarter of the year.
Second quarter pre-tax profits rose to Ksh37.61 billion from Ksh33.42 billion in the first quarter of the year. Interest income accounted for nearly two thirds of the profits even as the loan book grew by only five per cent, pointing to the central role that high interest rate spreads are playing in driving the profits machine.
“Interest on loans and advanc-