Bank 2004 Round Up

Kenya Commercial Bank: in 2004 KCB posted a net-profit Kshs. 793 million, a slight increase from 713 million in 2003. Its loan portfolio was 33 billion (up by 8 billion) while customer deposits were 52 billion (up by 4 billion). Staff costs increased by 15% to 3.4 billion and the bank still has a non-performing loan portfolio of 15 billion. Shareholders will be asked to approve payment of a 2 shillings per share dividend at the Bank’s AGM at KICC on June 17.

NIC: As expected NIC’’s successful MOVE did not improve profits much in 2004, during the year. The benefits will be seen in 2005/06. The Bank recorded an 8% profit increase to 261 million. Deposits increased by 57% to 12.5 billion and loans to customer increased by 67% to 11.5 billion thanks to various MOVE loan packages. However operating expenses increased by 35% to 782 million, including a 30% increase in staff costs. NIC’s AGM will be on May 27th at Intercontinental Hotel and a dividend of 2.4 shillings/share for the year will be paid.

Diamond Trust: Net profit for the year increased by 6% to 131 million. The Bank increased its loans to customer by 46% (to 7.1b) while reducing its investment in government securities by 50% (to 1.2b). The bank introduced 3 flat fee accounts (imitating NIC’s MOVE) and also launched an ATM network during the year – this increased deposits by 35% to 8 billion, but operating costs also increased by 30% to 578 million. The directors declared a dividend of 70 cents.