Category Archives: Guardian Bank

Bank Review ’07 Part II

Small banks, range from $40 to $100 million

Showed an inability to grow as faster as the bigger bank, with few exceptions. Yet they are still profitable and reluctant to merge

The banks got a temporary reprieve when parliament shot down the government’s proposal that banks should have a minimum capital of 1 billion ($15 million) 3 years from the current 250 million shilling minimum’ but that proposal is likely to be revisited by future finance ministers.

35. (38) Fidelity Bank: Estimated assets 3.2 billion ($45.7M), profit of 45 million ($0.7 million) shillings for this quiet bank with little marketing activity but which was able to grow 40% during 2007.

34. (36) Credit Bank: Estimated assets of 3,300 million and profit of 120 million, for another quiet bank which grew about 15% in 2007.

33. (33) Middle East: Estimated 3.2 billion assets and profit of 80 million in 2007. However deposits and loans are down 6% from a year ago.

32. (35) Habib Bank: Estimated 3.5 billion assets and profit of 90 million, with growth of 12% from a year ago. Participated in the first Diamond trust rights first issue as a possible merger step.

31. (29) Victoria: Estimated 4.2 billion assets 140m in profit. Flat growth expect in loans and deposits (1%), but great in profitability which is improved by over 40% in 2007.

30. (32) Consolidated Bank: Estimated 4.5 billion assets, 20 million profit with the 30% growth from a year ago. There was public fallout between the MD and the board resulting in the board being fired by the Finance Minister. The Deposit protection fund (DPF) of the Central Bank plans to sell its 51% stake to private sector, and is likely to be found next year by private sale. A loss in 2005 makes the bank ineligible for an NSE listing and the owners the collapsed banks that form Consolidated Bank are likely to figure in as potential buyers.

30. (31) Equatorial: 4.7 billion assets and 90m in profit. The Sameer group bank Out-performed corporate big sister CBA growing by about 15% in 2007.

29. (34) Development Bank of Kenya: Estimated 4.8 billion and 200m in profit. Remarkable growth fro a development finance institution to record 45% growth in loans & deposits. Part of ICDC’s (Government) 90% stake in the bank is up for sale in 2008.

28. (28) Southern Credit: Estimated 4.9 billion assets, 80m in profit. 10% growth in loans and deposits, with about 40% growth in profits in 2007. Bank with a lady MD focus on cards

27. (30) Chase Bank: Estimated assets of 5.0 billion, and profit of 130 million. The winner of small bank awards, will open new branches next year and has set about achieveing a recapitalization target of 1 billion, through retained earnings.

26. (26) Giro: Estimated 5.3 billion assets, 70m in profit. With 7% growth in the year, It was supposed to be sold to state bank of India, but the deal is yet to be approved by regulators.

25. (27) Guardian: Estimated 5.8 billion assets, 45 million profit. Growth of about 15%

24. (23) ABC: Estimated 5.8 billion assets, 170 million in profits. With 12% growth from a year ago, ABC was one of the few ‘small’ banks that had a marketing push to target new customers in 2007 in addition to a recapitalization drive. Launched ‘kisima’ a flat fee account and has new branches.

23. (24) Habib AG Zurich: Estimated 6.1 billion assets, 200 million profit for another quiet bank which grew about 15% in 2007.

22. (25) K-Rep: Estimated 7.2 billion assets, 200 million profit . With international shareholding and micro-finance expertise is an natural candidate for a merger Was 29th two years ago and recorded about 60% growth in 2007.

21. (21) Bank of Africa 7.2 billion ($103 million) assets 160 million shillings ($2.3 million) profit in 2007. What is hopefully the first of many West African banks spreading eastwards has opened new branches and targeted growth of new business like asset finance.

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.