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Imperial Bank After Tax Profit Increase By 35% Leveraged on an Increase in Customer Deposits

Imperial Bank After Tax Profit Increase By 35% Leveraged on an Increase in Customer Deposits

Imperial Bank has registered a remarkable 35% growth in profit after tax to Kshs. 1.1 billion as at 31st December 2011 compared to Kshs. 885 million reported for the same period in 2010.  Speaking as he released the full year results at the bank’s Upper Hill head office, Imperial Bank’s Managing Director Mr. Abdulmalek Janmohamed attributed the growth an increase in customer deposits following an increase in retail focus and an aggressive marketing campaign carried out by the bank in 2011.  “Imperial Bank has grown its branch footprint and increased its strength in the retail segment,” said Mr. Janmohamed.  “Last year we also launched an aggressive advertising campaign to increase awareness about Imperial Bank.  This has also led to a growth in our customer numbers.”

The bank’s total operating income in 2011 was Kshs. 3.41 billion representing an increase of 25% from Kshs. 2.73 billion in 2010 with interest income going up by 54% from Kshs. 2.8 billion to Kshs. 4.3 billion in the same period.  There was also an increase in interest rates in 2011.  The bank’s loan book recorded a 34% growth from Kshs. 11.2 billion in 2010 to Kshs. 14.9 billion in 2011 while customer deposits grew by 40% from Kshs. 13.7 billion to Kshs. 19.2 billion in the same period.  According to Mr. Janmohamed, the bank had a competitive pricing mechanism which saw foreign exchange income grow by 75% from Kshs. 168 million to Kshs. 295 million.  Imperial Bank’s success was also driven by prudent risk management practices which led to a 25% decline in loan loss expenses from Kshs. 126 million to Kshs. 95 million.

Imperial Bank recently opened its 17th branch in Kenya at the Village Market in Nairobi and its 3rd branch in Uganda at Nakivubo in Kampala.  With these results, Imperial Bank continues in its long standing tradition of achieving strong financial performance while successfully focusing on efficient client service delivery.

Download The Comprehensive Results Here: Full Year Results 2011