Kariuki Ngari, Chief Executive Officer, announced a robust financial performance for the first half of the year, reporting a 50% increase in profit before tax, reaching KShs 14.5 billion. This growth was driven by a 25% rise in top-line revenue, fueled by a 36% increase in non-interest income due to higher transactional volumes and a 19% growth in net interest income from volume expansion and improved margins.
Ngari highlighted the company’s strong cost discipline, which resulted in a significant 16% positive cost-income jaws. The balance sheet remains strong, with a notable decrease in non-performing loans (NPL) ratio to 8.4% from 9.7% as of December 2023, indicating improved asset quality. Despite an 8% decline in net loans and a 19% reduction in customer deposits, largely due to foreign currency revaluation and a stronger Kenya Shilling, the bank remains well-capitalized and highly liquid, with a liquidity ratio of 63.2%, well above the regulatory minimum.
Operating expenses increased by 9%, primarily due to higher staff costs and continued investment in digital capabilities. However, the loan impairment charge decreased by 23%, reflecting improved portfolio metrics.
The board announced an interim dividend of KShs 8.00 per ordinary share, underscoring the commitment to sustainable shareholder returns. Ngari concluded by emphasizing the bank’s resilience in the face of global and local macroeconomic challenges, the effectiveness of its strategy, and the dedication of its employees to serving clients and communities
