Bank of Africa Kenya (BOA) has announced an 86% increase in pre-tax profit for the year 2010, one of the highest in the local banking industry.
The bank's profit before tax rose from Sh260 million in 2009 to Sh484 million last year. Profit-after-tax rose from Sh192.4 million in 2009 to Sh355.3 million last year. Customer deposits also increased from Sh12.4 billion to Sh19.8 billion.
BOA Kenya Managing Director, Kwame Ahadzi attributed the stronger performance to a relentless focus on costs even in the face of expansion in Kenya as well as prudent lending practices. He added that the improved performance of the economy last year had also contributed to the bank's growth.
The bank's loan book grew from Sh.9.1 billion in 2009 to Sh14.1 billion in 2010. This saw interest income increase from Sh1.1 billion to Sh1.7 billion while interest expenses rose from Sh616.2 million to Sh891.4 million.
BOA Kenya has embarked on an aggressive expansion plan increasing its branches from 9 to 17 in 2010. The new branches opened last year were in Kericho, Eldoret, Ngong Road, Changamwe, Ongata Rongai, Embakasi, Nakuru and Bungoma. This year, according to Kwame, the bank plans to roll-out 7 more branches in Kisii, Meru, Nyali, Nanyuki, Kitengela, Bomas of Kenya and Greenspan in Nairobi's Eastlands area.