Middle East Bank Kenya Limited Limited (MEB) net earnings increased to KSh 70.1 million at the end of the third quarter, 2019. This is compared to a loss of KSh 70.6 million over a similar period last year.
The Bank’s balance sheet grew in size from KSh 5.36 billion to KSh 6.9 billion while customer deposits increased from KSh 4.1 billion to KSh 5.6 billion at the end of Q3, 2019. The balance sheet increase has largely been attributed to growth in customer deposits and increased shareholder funds.
MEB Total Interest Income increased significantly from KSh 299.2 million to KSh 418.02 million with interest on loans and advances to customers rising from KSh 195 million to KSh 315.6 million.
Fees earned from loans and advances to customers increased substantially from KSh 11.2 million to KSh 81.6 million.
The lender also cut provisions for loan losses from KSh 23.2 million to KSh 9.9 million as it moved to clean up its books.
The Bank is incorporated in Kenya under the Companies Act and is domiciled in Kenya with no Group companies. The Bank currently has 4 branches in Nairobi, Mombasa and Eldoret.
Its shareholding structure includes foreigners with 9.78 per cent stake and 98 per cent owned by local investors.
MEB was incorporated in Kenya in October 1980 and established as a business in August 1981 with branches in Nairobi and Mombasa. It was established as part of the Al-Futtaim Group, a leading conglomerate from the United Arab Emirates owned by Middle East Bank Group, UAE.
In 1991, Al-Futtaim Group sold its shareholding in MEB with control of the bank shifting to local investors.