Metropolitan Bank records US$2m profit

ended December 31, 2010 .
In a statement accompanying the financial results the bank’s chairman Mr Wilson Manase said the bank’s capital position remained strong during the period under review.
“The bank’s deposit base increased by 262 percent from US$12,1 million as at December 31 2009 to US$43,8 million during the period under review. During the same period the total shareholders equity was US$18,4 million thus representing a 28 percent of year-end assets of US$65,3 million.
“The financial landscape continues to grow with an upward trend from the doldrums, as new players are coming into the sector and others consolidating their positions coupled with the increasing confidence of the banking public,” he said.
Mr Manase said the bank’s interest rates although relatively high in comparison to global rates, they were noticeably coming down in tandem with the marginal increase in bank deposits and the little offshore credit lines that are tickling in.
“Impairment of loans and advances for the year amounted to US$445 820. Tight management of risk coupled with proactive management of accounts has resulted in low levels of bad debts provisions.
“The capital adequacy ratio stood at 31 percent, which is well above the minimum prescribed ratio of 10 percent. I am pleased to report that the bank is well capitalised and complies with the regulatory authority’s capital requirements applicable to commercial banks,” said Manase.
Metropolitan Bank continues to show its commitment towards the positive development in various charitable organisations such as the Rotary Club, Danhiko and national fundraising events that support different charities.
Contributions towards corporate social responsibility programmes amounted to US$140 000 during the period under review.
Metropolitan’s future is aimed at accelerating investment in new products and technological capabilities.
Their focus is also to establish lines of credit to enable customers to fund their working capital requirements. To date they have established US$5 million line of credit with PTA Bank.
The bank is also working on another US$50million line of credit with Loita Capital Partners their parent shareholder. This line of credit is expected to be finalised and utilised in the second quarter of this year.