Micro-lender K-Rep Bank records 99pc profit rise to Sh120m

A K-Rep Bank branch on Kenyatta Avenue in Nairobi. Centum has received the go-ahead from the Competition Authority of Kenya to acquire a controlling stake in K-Rep Bank. FILE PHOTO | SALATON NJAU |

What you need to know:

  • The micro-lender recorded Sh120.3 million after-tax profit for the half year to June.
  • The customer deposits more than doubled to Sh146.9 million from Sh77.3 million in 2013.

K-Rep Bank has posted a 99 per cent increase in after-tax profit for the first six months of 2014.

The micro-lender recorded Sh120.3 million after-tax profit for the half year to June, up from Sh60.6 million posted over a similar period last year, riding on a rise in interest and non-interest income.

Total non-interest income for the period under review grew 76 per cent to Sh161.7 million, from Sh91.9 million during a similar period in 2013.

Net interest income increased to Sh394.8 million, a 31 per cent growth, from Sh300.7 million, thanks to a jump in lending activities. Loans increased to Sh561 million from Sh378.3 million.

The customer deposits more than doubled to Sh146.9 million from Sh77.3 million in 2013, indicating the lender’s growing customer base.

ACQUIRE STAKE

Centum Investment has opened negotiations to acquire a 66 per cent stake in the bottom-tier lender in a deal that, if successful, will raise the investment firm’s stake to 67.54 per cent.

The lender’s book value, a measure of assets less liabilities, now stands at Sh2 billion — having grown by 25 per cent from Sh1.6 billion during a similar period last year.

K-Rep was licensed as a commercial bank in 1999 and has registered steady growth over the years, apart from 2008 when it posted a loss after the post-poll chaos that took a hit on most of its loan clients.