Gulf records 81pc jump in its full year earnings

The bank reported an after-tax profit of Sh728.6 million up from Sh402.1 million a year earlier. It surpassed its Sh1 billion target in before-tax profit, booking Sh1.09 billion in the review period.

Total operating income grew by 49 per cent to Sh2. 8 billion while customer deposits rose 20 per cent to 19 billion.

Gulf African was the first exclusive Shariah-compliant bank to be launched in Kenya in 2008.

Other banks have opened Islamic business departments to serve Muslims.

Gulf opened a Shariah-compliant insurance brokerage GAB Takaful Insurance Agency Limited in 2014 as it sought to diversify its income streams.

The bank’s operating expenses increased by 22.5 per cent to Sh1.5 bilion in review period, reflecting increased cost of doing business.

“On the positive side however, there was increased efficiency, with the bank’s cost income ratio improving substantially from 66.1 per cent in 2014 to 54 per cent in 2015,” the lender said.