Chase Bank Q3 profit up 28 pc on increased lending

Chase Bank’s net profit for the first nine months of the year grew by a third on the back of increased lending and higher earnings from fees and commissions.

The mid-tier lender has announced an after-tax profit of Sh2.3 billion as at September compared to Sh1.8 billion in the same period last year.

Its loan book grew by 54.9 per cent to Sh73.6 billion, up from Sh49.4 billion in the third quarter of 2014, pushing net interest income to Sh5.4 billion.

Non-funded income grew by Sh841 million to hit Sh2.7 billion mainly from fees and commissions and earnings from forex trading.

Customer deposits went up by S6 billion cent to Sh108 billion from Sh72 billion held over a similar period last year – resulting in interest expenses surging 59 per cent to Sh6.8 billion.

Chase Bank has announced plans to undertake yet another capital raising venture following rapid growth which has strained the ratios set by the regulator.

Last year it raised Sh1.3 billion from shareholders in a rights issue and Sh9 billion in long-term debt from international financiers such as the International Finance Corporation (IFC), Dutch Development Bank (FMO) and Micro Finance Enhancement Fund.

READ: Chase Bank gets Sh1.5bn for green energy projects

Chase Bank owns Rafiki, a deposit taking microfinance, stockbrokerage Genghis Capital, Orchid Capital, an investment aisory firm, Chase Assurance, real estate firm Light House Properties and Tulip Healthcare.

SOURCE: BUSINESS DAILY