Monthly Archives: March 2005

More 2004 Results

Citibank N.A. Kenya 25.1 billion assets
Citibank’s overall performance dipped significantly compared to 2003 – the bank returned a profit after tax of 124 million, down from 524 million the year before. Citibank earned 350 million less from government securities, other income reduced by 80 m and the provisions for bad debts increased by 50 m – all contributeing to its drop from 2003 numbers despite reducing its staff costs from 602 to 465 million during the year. The Bank had customer deposits of 19.5 billion which it invested as loans – 9.6 billion and government securities – 4 billion (down from 9.3b in ’03) Citibank ended the year with a huge cash position – 8.1 billion placed in other banks and 2.1 billion in their accounts.

Dubai Bank 0.9 billion assets
The Bank ended the year with customer deposits of 477m and loans of 550m. Shockingly the bank has interest income of 127 m and interest expense of only 2 million – leading to 126 million in net interest income – don’t their depositors care about interest?

Bank of Baroda 8.3 billion assets
The bank had customer deposits of 7.1 billion, customer loans of 2.7 b and government securities of 4.6 b. The Bank ended the year with profit after tax of 202 million, which was up from 97m in 2003.

Habib Bank AG Zurich 4.45 billion assets
The Bank increased its customer deposits from 3.4 to 3.8 billion – and advanced 1b in customer loans, 2b in government securities. Profit after tax was 39 million, down from 53m in 2003.

Middle East Bank Kenya 4 billion assets
The Bank increased its customer deposits from 2.4 to 3 billion – and had customer loans of 1.6 b, with 1b placed in other banks. It had net interest income of 135 million, but a foreign exchange loss of 7 m (2003 gain was 35m) contributed to a 60% reduction in net profit for the year – 23 million (down from 56m profit in 2003).

Oriental Commercial Bank 1.6 billion assets
formerly Delphis Bank, and before that BCCI
The Bank’s position worsened this year with a pre-tax loss of 368 million (268 million after tax) compared to a 230 million loss in 2003. The Bank had no net interest income in 2004 (a loss of 627, 000 shillings) compared to 31 million in 2003. Also the insider loans position changed from 521m in ‘03 to 12 m in 2004 and the Bank had to provide 295 million for bad debts during the year – leaving a total non –performing portfolio of 1.12 billion.

Can’t wait for 2007

• Parliament met for 120 days last Session, discussed and passed a total of 12 bills. Of these, three were returned by President Kibaki, citing various anomalies and asking Members to scrutinise them afresh. During that period, South Africa’s parliament, for example, passed 38 Bills, while Tanzania’s disposed of 24.
• It is now common knowledge that Kenya’s Parliament is among the poorest performers within the Commonwealth.
• The delay in the process of legislation begins when some committees take too long to return their reports to allow for publication and subsequent tabling in Parliament for debate and adoption.
• MPs performed poorly last week. Having been out on recess for three months, it was a shame that quorum lacked three times on the Tuesday, the first day of House business. This must change if MPs are to justify their keep.

Who’s Who?

If Minister has 750 million shillings in a single bank account abroad, and Transparency International won’t say who it is, and the Kenya Anti-Corruption Commission won’t investigate, and parliamentary wealth declarations are kept secret, perhaps we can figure out who he/she is by logic.

Clear
1. Anyang Nyongo – not in this league
2. Linah Jebii Kilimo – not in this league
3. William Ole Ntimama – not in this league
4. Kalonzo Musyoka – not in this league
5. Maurice Dzoro – not in this league
6. Raphael Tuju – not in this league
7. Musikari Kombo – not in this league
8. Newton Kulundu – not in this league
9. Ochillo Ayako – not in this league
10. Charity Ngilu – not in this league
11. Joseph Munyao – not in this league
12. Martha Karua – not in this league
13. Ali Chirau Mwakwere

Long Shots
14. Kiraitu Murungi – not in this league
15. David Mwiraria – not in this league
16. Simeon Nyachae – has the money, but invests visibly in Kenya
17. John Michuki – has the money, but invests visibly in Kenya
18. Raila Odinga – he would have been named
19. Moody Awori –
20. Najib Balala –
21. Njenga Karume – has the money, but invests visibly in Kenya
22. Amos Kimunya –

Short List
23. George Saitoti – probably the wealthiest Minister
24. Chris Murungaru – fabulous nouveau riche
25. Mukhisa Kituyi – fabulous nouveau riche
26. Kipruto arap Kirwa – fabulous nouveau riche
27. Njeru Ndwiga
28. Mwai Kibaki

2004 Bank Round-Up

Investment & Mortgages Bank (I & M)
The Bank increased its after-tax profit to 255 million (up from 195 million) It had customer deposits of 11.6 billion (up from 10.1 b) and advanced 8.2 billion in loans to customers (up from 5.3b). It’s net interest income increased 217 million (up from 160) and staff costs increased to 217 Million (from 160m) but which was probably offset by an increase in rental income when the Standard/KTN Group moved into the Bank’s I&M Towers (other income increased from 57 to 116 million)

Equity Bank (formerly Equity Building Society)
Equity is on an expansion binge to correct an anomaly according to their MD James Mwangi, who has expressed a desire to expand the Bank’s loan book to increase income. The bank has 5 billion in customer deposits, but has only advanced 2.87 billion to customers – at year end they had 1.9 billion at other banks and 580 million in government securities. Net interest income was 396 million (up from 257m), while other income was 640 (306m) – staff costs were 286 million (up from 167 million).

Commercial Bank of Africa (CBA)
The Bank which this month announced a merger with sister Bank, First American, ended the year with a net after-tax profit of 282 million, which was down from 380 million in 2003. Despite having customer deposits of 17.6 billion (up from 15 billion) the bank only has advanced of 5.3 billion as loans to customers (up from 4.3 billion) – it ended the year with 5.5 as cash in other Banks and 6 billion in government securities (down from 8.5) The Ban earned 401 million in net interest income, 304 million from government securities and 312 million from commissions.

Akiba Bank
Akiba Bank is only the second major bank to record a loss in 2004 (after Fina Bank) still the loss of 42 million was a vast improvement from a 550 million loss the bank reported in 2003. Its main problem is non-performing loans as the Bank had to provide 153 million for bad debts (877 million in 2003). The Bank has 3 billion in deposits and 2.3 billion in customer loans.

Guardian bank
Another bank with a huge bad loan book is Guardian Bank. The Bank ended 2004 with a profit of 36 million (37 million in 03) and it has customer deposits of 3.2 billion and loans of 2.5 billion; however, the Bank has a total non-performing loan portfolio of 910 million.