Listed financial services firm Britam Holdings has reported 175% growth in half Year 2016 Profit Before Tax to Ksh2.87 Billion. The increase was mainly as a result of revaluation of its long term insurance business using the GPV methodology which is a requirement by the Insurance Regulatory Authority (IRA) as set out in the Finance Act 2015. The valuation resulted into increase in Profit Before Tax by Ksh 1.95 Billion.
The Group’s total revenue was up to Ksh 12.7 Billion compared to Ksh 11.05 Billion posted in the same period in 2015. Gross earned premiums and fund management fees also grew to Ksh 11.01 Billion against Ksh 10.6 Billion reported in Half Year 2015.
The company’s investment income also increased by a significant margin of 38% to Ksh 2.4 Billion with the asset management revenue growing by 21% to Ksh 524.9 million against the previous period’s Ksh 439.4.
However, Finance costs shot to Ksh 902.6 Million from Ksh 390 Million reported in the same period in 2015 with total expenses remaining unchanged at Ksh 10 Billion. In the same period, the Group acquired 100% stake in Real Insurance Group.
Profit Before Tax went up by 175% to Ksh 2.87 Billion against Ksh 1.04 Billion reported in June 2015. Profit After tax was at Ksh 1.78 Billion compared to Ksh 624 Million in the same period the previous year.
READ; Bear Market Pushes Britam Into Ksh 1.2 Billion FY Loss but Dividend declared
The group’s total assets also increased By 7% to Ksh 81.7 Billion while its liabilities grew to Ksh 62.8 Billion Versus Ksh 55.6 Billion of HY 2015.
Earnings Per Share was at Ksh 0.92 against Ksh 0.32 of June 2015 as no interim dividend was recommended by the board.
Related; Kenya’s Plum LLP to acquire 23.34% stake in Britam Holdings
