Gulf African Bank’s net profits for the financial year ending December 2022 rose by a quarter to Sh555.1 million on the back of increased income and slower growth in expenses.
The Shariah-compliant lender had made a profit after tax of Sh444.1 million the year before, with its latest performance benefitting from improved efficiencies.
Like many other lenders, Gulf African weathered the tough economic times to net a higher income of Sh3.3 billion in the review period, a growth of 12.4 percent compared to Sh2.9 billion in 2021.
However, total expenses grew at a slower pace of 10.2 percent to Sh3.32 billion compared to Sh2.94 billion in the previous year.
“Our stellar performance delivered during this period is an attestation of the progress made by the bank in growing sustainable income from our core business,” said Gulf African Bank’s CEO Anuj Mediratta.
Mr Mediratta said that the lender’s transformation is hinged on partnerships, which has resulted in a stronger balance sheet and better asset quality.
The lender’s returns have been powered by increased funding to customers that now stands at Sh22 billion, an increase of 6.3 per cent from Sh20.7 billion that the tier-three lender made in the previous period.
Customer deposits grew from Sh29.2 billion to Sh31.4 billion, leaving it with a sufficient war chest to increase its lending.
“We will continue to optimize opportunities that drive growth in revenue and profitability given our unique position as a leader in Islamic Banking regionally,” said Mediratta.
Gulf African Bank, which was started in 2008, is one of the lenders that offer services that comply with the Shari’ah- a body of religious law that forms part of the Islamic tradition.
One of the features of Islamic banking is it prohibits charging of interest, which is frowned upon as riba or usury.
