Big Bank Updates

CFC: CFC Bank posted a net profit of 665 million, up from 415 million in 2003 (60% increase) and will pay a dividend of .84 shillings/share (same dividend as 2003). During the year, customer deposits grew from 10.1 to 12.9 billion, while loans to customers also increased from 7.8 to 11 billion. They also reduced their government securities from 3.5 to 3 billion, while their non-performing assets also reduced from 422 to 394 million. The only odd point was an increase in investment in subsidiary companies from 166 to 691 million, related to the purchase of Alico insurance.

Co-op: Cooperative Bank bucked a trend by investing more in government securities. During the era of low-interest rates, bank’s have been transferring funds from the government to the private sector, but Co-op increased their government securities by almost 3 billion shillings to 3.3 billion at year-end up from 459 million in 2003 (and earned 558 million, up from 272 million on govt. securities). Also provisions for bad debts almost doubled from 464 to 886 million.  The bank increased its customer deposits from 26 to 35 billion, and also loans to the public from 18 to 35 billion. The Bank ended the year with after tax profits increased by 32% – from 156 million to 206 million.

KCB: KCB has announced that they will add 36 more ATM outlets by the end of the year. They currently have 83 in operation.

World Bank: This week, George W. Bush gives the World the finger by nominating Paul Wolfowitz, the Chief architect of the US War in Iraq to head the World Bank

(and speaking fingers, watch Nation TV this weekend for a re-cap of the opening of Parliament – and don’t blink or you’ll miss a clip of Chris Murungaru flipping the bird at someone)