In Summary
  • Gulf African Bank said net profit increased to Sh212.42 million from Sh191.60 million in a corresponding period last year.

Gulf African Bank's profit after taxation for the six months ended June grew 10.86 per cent after fees on financing deals quadrupled, the mid-sized lender has announced.

The country’s largest Shariah-compliant bank by market share said net profit increased to Sh212.42 million from Sh191.60 million in a corresponding period last year.

Fees and commissions on financing arrangements, an equivalent of loans, surged 309.72 per cent to Sh122.89 million from Sh29.99 million.

Banks operating under Shariah law are barred from charging interest on financial arrangements, but instead share profit or loss from the projects they fund.

Net profit income, an equivalent of net interest in conventional banking, rose 7.46 per cent to Sh1.01 billion after the value of the arrangements to customers jumped by a third year-on-year to Sh21.42 billion in June and 7.42 per cent from last December.