In banking this week

Citibank (31.5 billion assets) Roars Back
After a lacklustre 2004, Citibank Kenya has already surpassed its 2004 profit in the first three months of 2005. Deposits increased by 23%, from 19.5 billion shillings to 24b, and the bank’s net interest income and total operating income of 263m and 501m respectively, between January and March 2005. As a result, Citibank earned 308m before tax, and 185m after-tax, compared to 124m for the entire 2004 year.

Diop: Kibaki tenant
As has been already pointed out, it is a conflict of interest for the World Bank Country Director (or the World Bank itself) to be a tenant of the President of Kenya. In Equatorial Guinea, where President Obiang has been accused of fleecing the country, one favoured channel of corruption was that oil companies would always rent buildings and properties from Obiang and his family (even a 12-year-old kid) at exorbitant rates.

Know your credit history
In a Kenya Gazette notice this week, the Banking Act has been amended so that a bank customer is now entitled to know any information a credit bureau holds on him, by requesting this in writing. This will enable the customer to correct information, file a complaint with the Bank and encourage the bank to investigate the dispute for correction. (Applies to all banks and financial institutions)

Executive changes
Mukhisa Kituyi has appointed James Ochami as the new managing director of Industrial Development Bank Ltd. He also appointed Evans Kisina as a director.

Stanchart to target mid-sized businesses
Standard Chartered Bank has launched a Small and Medium Enterprises (SME) division. The SME product will offer a combination of overdrafts, letters of credit, bonds and guarantees, credit bill negotiation, invoice discounting among other benefits. The bank has also introduced trade and working capital, finance products, auto loans, commercial and residential mortgage facilities to cater for different customer needs.

New robbery technique
Bank robbers are now posing as customers in banking halls as they scope out people making huge withdrawals. They then rob them far away from the Bank, often posing as police officers.

Union wrong-footed on Labour Day
The Bank union which earlier forbade its members from participating in a performance appraisal system at Kenya Commercial Bank are now crying foul – and now opposing payment of bonuses to management and other members of staff who were evaluated and found to be high-performers in the process.

3 thoughts on “In banking this week

  1. Wassapangaz

    Its amazing how innovative robbers can be,sad situation though. About EAC instead of supporting our own organization,we still want to get aid from other countries to solve our own problems,will we ever change?.Good post.

  2. bankelele

    It’s far easier to rob customers, than the Bank itself. Especially at the end of a month – when many people have to withdraw thousands of shillings in cash to pay workers and other bills.

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