The rise in profitability comes on the back of cost-cutting measures that helped it to grow its bottom-line.
In 2017, the firm closed 12 to branches and laid off tens of staff members as it also digitized most of its services.
Currently, the bank has a network of more than 30 branches countrywide with two business centres in Nairobi and Mombasa to cater for enterprise clients.
Bank of Africa (BoA) has posted a 156 percent growth in after-tax profit to hit 173 million for the financial year ending December 2018.
The rise in profitability comes on the back of cost-cutting measures that helped it to grow its bottom-line.
Overall the lender cut its operating expenses by 21 percent (735 million) to 2.68 billion. The bank’s staff costs and rental charges declined by 11 percent to Sh1.06 billion and 20 percent to Sh205 million respectively to reflect gains of branch closures and trimming of employee numbers.
In 2017, the firm closed 12 to branches and laid off tens of staff members as it also digitized most of its services.
Currently, the bank has a network of more than 30 branches countrywide with two business centres in Nairobi and Mombasa to cater for enterprise clients.
While the bank recorded increased earnings, its interest income went down by 17.8 percent to Sh3.38 billion compared to Sh4 billion during a similar period in the previous year.
The fall in interest income was as a result of a drop in revenue from loans and advances to customers after recording a 19 percent decline to hit 2.7 billion, as the bank slowed on lending. Notably, interest income from government securities grew by 34 million from 474 million in the 2017 financial year.
BOA Kenya, headed by Ronald Murambi, is a subsidiary of Bank of Africa Group — part of BMCE Bank of Africa Group — which has operations in 20 African countries and 30 others worldwide.
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