Britam records 32 per cent growth in profit before tax to Kshs. 3bn

British American Investments Company (Kenya) Limited, Britam has  reported a Kshs. 3 billion pre-tax profit for the half year period ending 30^th June 2014, representing a 32 per cent growth against Kshs. 2.3 billion reported during the same period in 2013. 

The Group also recorded a 29 per cent growth in gross revenues at Kshs.6 billion compared to Ksh.4.7 billion reported in 2013. This is attributed to the positive performance of all group business units and subsidiaries, and the implementation of its growth and diversification strategy of increased local and regional presence, continuous generation of innovative products, and IT enabled business transformation.

Britam Group Managing Director, Dr. Benson Wareigi while releasing the Group's financial results at a Nairobi hotel.

While releasing the results, the Group Managing Director Dr. Benson Wairegi said, “We continue to see exponential growth of all our business units. The growth has been delivered by our deliberate move to diversify our investment portfolio, while expanding regionally. We are pleased with the results delivered by our subsidiaries of Uganda and South Sudan and we are optimistic that the second half of this year will equally deliver great results.”

Wairegi added that the Kenyan business was the biggest contributor to the revenues, delivering Kshs. 5.3 billion, which represents a 96 per cent growth of total revenue. 

The regional subsidiaries continue to record high growth rate. Regional offices contribution grew to 54.9 per cent to Kshs.  262.9 million, up from Kshs 117.9 million last year. South Sudan recorded a 183 per cent growth in the first half of 2014 at Kshs. 116 million compared to Kshs. 41 million in 2013, while Uganda delivered Kshs. 25 million, up from Kshs. 77 million. 

Asset management revenues grew to Kshs. 413.8 million up from Kshs. 267.2 million in 2013, a growth trajectory of 54.4 per cent while asset base grew by 28.3 per cent to Kshs. 55.2 billion up from Kshs. 43 billion last year. Assets Under Management (AUM) also had a growth of 26.9 per cent to Kshs. 41.5 billion up from Kshs. 32.7 billion.

The insurance business remains the most profitable, recording revenue of Kshs. 5.3 billion against Kshs. 4.3 billion recorded during the same period in 2013, representing 23.2 per cent growth. 

Total revenues grew by 28 per cent to Kshs. 10.2 billion up from Kshs. 8 billion, driven heavily by returns from stable equity market and fixed income investments.  Investment in listed equities grew by 35 per cent of total investment portfolio followed by fixed income at 28 per cent, unit trusts at 13 per cent and property at 9 per cent while investment in associated companies remained at 4%.  

Net claims were up 44% to Kshs. 3.6 billion, up from Kshs. 2.5 billion. 

The Group successfully raised Kshs. 6 billion last month through a bond issue, and also launched a county strategy that will see 5 new branches launched in Kenya by end of the year.