Chase Bank earnings up to Sh1.8bn

What you need to know:

  • Interest income in the three months to September increased to Sh7.8 billion from Sh4.9 billion reported during a similar period last year.
  • Lending increased by 32 per cent to Sh49.5 billion.

Chase Bank net profit for the third quarter of the year went up 60 per cent to Sh1.8 billion driven by growth in its loan book.

The bank said in a statement on Monday that its interest income in the three months to September increased to Sh7.8 billion from Sh4.9 billion reported during a similar period last year.

Lending increased by 32 per cent to Sh49.5 billion in the period under review up from Sh37.5 billion in 2013.

Chase Bank deputy chief executive Paul Njaga said the positive performance was mainly driven by the SME and agribusiness units of the institution.

He said the bank had raised Sh1.3 billion in new capital through the recent rights issue, which would help the company meet new regulatory requirements on capital ratios.

Money from the rights issue is in addition to a long-term debt facility of Sh4 billion that the bank recently received from the Deutch Development Bank — FMO.

It has also entered a Sh1.6 billion agreement with Microfinance Enhancement Facility South Africa.

Mr Njaga said the bank will focus on long-term growth by investing in IT, branch expansion and raising more capital.