Kenya'n Banks Post Su­per Prof­its

Diplomat East Africa - - Table of Contents -

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-

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