I BALANCE SHEET

(1)

NAME OF INSTITUTION: STANDARD CHARTERED BANK KENYA LIMITED CONSOLIDATED FULL YEAR FINANCIAL STATEMENTS AND DISCLOSURES

I BALANCE SHEET

31.12.2013 31.12.2014

KShs ‘000 KShs ‘000

A. ASSETS Audited Audited

1. Cash (both local and foreign) 3,991,672 3,742,061

2. Balances due from Central Bank of Kenya 10,053,561 11,641,251

3. Kenya Government and other securities held for dealing purposes 2,478,935 3,076,047 4. Financial Assets at fair value through profit and loss 241,102 100,242 5. Investment Securities:

a) Held to Maturity:

i. Kenya Government securities - -

ii. Other securities - -

b) Available for sale:

i. Kenya Government securities 53,163,593 55,139,813

ii. Other securities 546,345 539,193

6. Deposits and balances due from local banking institutions 1,942,781 4,641,765 7. Deposits and balances due from banking institutions abroad 156,086 161,171

8. Tax recoverable 103,747 77,058

9. Loans and advances to customers (net) 129,672,004 122,749,233

10. Balances due from banking institutions in the group 8,465,151 11,004,805

11. Investments in associates - -

12. Investments in subsidiary companies - -

13. Investments in joint ventures - -

14. Investment properties - -

15. Property and equipment 3,809,048 3,669,669

16. Prepaid lease rentals 252,893 249,832

17. Intangible assets 3,593,003 3,180,133

18. Deferred tax asset - -

19. Retirement benefit asset - -

20. Other assets 1,921,259 2,523,551

21.TOTAL ASSETS 220,391,180 222,495,824

B. LIABILITIES

22. Balances due to Central Bank of Kenya 2,030,804 5,454,382

23. Customer deposits 154,720,011 154,066,931

24. Deposits and balances due to local banking institutions 2,984,036 89,365 25. Deposits and balances due to foreign banking institutions 3,575,974 3,562,579

26. Other money market deposits - -

27. Borrowed funds - -

28. Balances due to banking institutions in the group 15,029,481 13,359,389

29. Tax payable - -

30. Dividends payable - -

31. Deferred tax liability 450,634 463,637

32. Retirement benefit liability 9,000 4,700

33. Other liabilities 5,384,839 4,836,667

34. TOTAL LIABILITIES 184,184,779 181,837,650

C. SHAREHOLDERS' FUNDS

35. Paid up/Assigned Capital 1,825,798 1,825,798

36. Share premium/ (discount) 7,792,427 7,792,427

37. Revaluation reserves 450,223 583,707

38. Retained earnings/ Accumulated losses 18,119,239 20,814,449

39. Statutory loan loss reserves 1,323,070 3,679,423

40. Other Reserves (Available for sale) 155,958 108,271

41. Proposed dividends 4,650,813 3,949,184

42.Capital grants 1,888,873 1,904,915

43. TOTAL SHAREHOLDERS' EQUITY 36,206,401 40,658,174

44 Minority Interest - -

44. TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 220,391,180 222,495,824

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COMPANY FULL YEAR FINANCIAL STATEMENTS AND DISCLOSURES

I BALANCE SHEET

31.12.2013 31.12.2014

KShs ‘000 KShs ‘000

A. ASSETS Audited Audited

1. Cash (both local and foreign) 3,991,672 3,742,061

2. Balances due from Central Bank of Kenya 10,053,561 11,641,251

3. Kenya Government and other securities held for dealing purposes 2,478,935 3,076,047 4. Financial Assets at fair value through profit and loss 241,102 100,242 5. Investment Securities:

a) Held to Maturity:

i. Kenya Government securities - -

ii. Other securities - -

b) Available for sale:

i. Kenya Government securities 53,163,593 55,139,813

ii. Other securities 546,345 539,193

6. Deposits and balances due from local banking institutions 1,942,781 4,641,765 7. Deposits and balances due from banking institutions abroad 156,086 161,171

8. Tax recoverable 96,193 75,699

9. Loans and advances to customers (net) 129,672,004 122,749,233

10. Balances due from banking institutions in the group 8,465,151 11,004,805

11. Investments in associates - -

12. Investments in subsidiary companies 140,243 140,243

13. Investments in joint ventures - -

14. Investment properties - -

15. Property and equipment 3,809,048 3,669,669

16. Prepaid lease rentals 252,893 249,832

17. Intangible assets 3,593,003 3,180,133

18. Deferred tax asset - -

19. Retirement benefit asset - -

20. Other assets 1,921,259 2,524,836

21.TOTAL ASSETS 220,523,869 222,635,993

B. LIABILITIES

22. Balances due to Central Bank of Kenya 2,030,804 5,454,382

23. Customer deposits 154,720,011 154,066,931

24. Deposits and balances due to local banking institutions 2,984,036 89,365 25. Deposits and balances due to foreign banking institutions 3,575,974 3,562,579

26. Other money market deposits - -

27. Borrowed funds - -

28. Balances due to banking institutions in the group 15,356,138 13,728,277

29. Tax payable - -

30. Dividends payable - -

31. Deferred tax liability 454,187 470,381

32. Retirement benefit liability 9,000 4,700

33. Other liabilities 5,363,735 4,809,525

34. TOTAL LIABILITIES 184,493,885 182,186,140

C. SHAREHOLDERS FUNDS

35. Paid up/Assigned Capital 1,825,798 1,825,798

36. Share premium/ (discount) 7,792,427 7,792,427

37. Revaluation reserves 450,223 583,707

38. Retained earnings/ Accumulated losses 17,942,822 20,606,128

39. Statutory loan loss reserves 1,323,070 3,679,423

40. Other Reserves(Available for sale) 155,958 108,271

41. Proposed dividends 4,650,813 3,949,184

42.Capital grants 1,888,873 1,904,915

43. TOTAL SHAREHOLDERS EQUITY 36,029,984 40,449,853

44 Minority Interest - -

44. TOTAL LIABILITIES AND SHAREHOLDERS EQUITY 220,523,869 222,635,993

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STANDARD CHARTERED BANK KENYA LIMITED CONSOLIDATED PROFIT AND LOSS STATEMENT

FULL YEAR FINANCIAL STATEMENTS AND OTHER DISCLOSURES

II PROFIT AND LOSS ACCOUNT 31.12.2013 31.12.2014

KShs ‘000 KShs ‘000

Audited Audited

1 INTEREST INCOME

1.1 Loans and advances 15,528,161 15,673,800

1.2 Government securities 5,941,674 5,945,728

1.3 Deposits and placements with banking institutions 112,700 333,440

1.4 Other Interest Income 97,179 167,058

1.5 Total Interest Income 21,679,714 22,120,026

2 INTEREST EXPENSES

2.1 Customer deposits 3,367,559 3,030,399

2.2 Deposits and placements from banking institutions 1,487,502 1,088,630

2.3 Other Interest Expenses 64,322 96,276

2.4 Total Interest Expenses 4,919,383 4,215,305

3 NET INTEREST INCOME/(LOSS) 16,760,331 17,904,721

4 NON-INTEREST INCOME

4.1 Fees and commissions on loans and advances 900,162 373,573

4.2 Other fees and commissions 2,941,094 3,496,930

4.3 Foreign Exchange trading income/(loss) 2,278,145 2,017,484

4.4 Dividend Income - -

4.5 Other income 947,645 2,281,970

4.6 Total Non-Interest Income 7,067,046 8,169,957

5 TOTAL OPERATING INCOME 23,827,377 26,074,678

6 OTHER OPERATING EXPENSES

6.1 Loan loss provision 987,134 1,308,416

6.2 Staff costs 4,964,048 5,612,984

6.3 Directors' emoluments 142,356 166,154

6.4 Rentals charges 499,277 501,397

6.5 Depreciation charge on property and equipment 544,604 497,451

6.6 Amortisation charges 438,845 493,814

6.7 Other operating expenses 2,896,148 3,148,481

6.8 Total Other Operating Expenses 10,472,412 11,728,697

7 Profit/(loss) before tax and exceptional items 13,354,965 14,345,981

8 Exceptional items - -

9 Profit/(loss) after exceptional items 13,354,965 14,345,981

10 Current tax (4,074,992) (3,940,765)

11 Deferred tax (17,052) 30,964

12 Profit/(loss) after tax and exceptional items 9,262,921 10,436,180

13 Minority Interest - -

14 Profit/(loss) after tax,exceptional items and minority interest 9,262,921 10,436,180 15 Other Comprehensive Income

15.1 Gains/(Losses) from translating the financial statements of foreign operations - - 15.2 Fair value changes in available for sale financial assets 319,056 (60,925) 15.3 Revaluation surplus on Property,plant and equipment - 229,784 15.4 Share of other comprehensive income of associates - - 15.5 Income tax relating to components of other comprehensive income (95,717) (43,967) 16 Other Comprehensive Income for the year net of tax 223,339 124,892

17 Total comprehensive income for the year 9,486,260 10,561,072

18 EARNINGS PER SHARE - BASIC & DILUTED 29.42 33.21 19 DIVIDEND PER SHARE - DECLARED 14.50 17.00

(4)

COMPANY PROFIT AND LOSS STATEMENT

FULL YEAR FINANCIAL STATEMENTS AND OTHER DISCLOSURES

II PROFIT AND LOSS ACCOUNT 31.12.2013 31.12.2014

KShs ‘000 KShs ‘000

1 INTEREST INCOME

1.1 Loans and advances 15,528,161 15,673,800

1.2 Government securities 5,941,674 5,945,728

1.3 Deposits and placements with banking institutions 112,700 333,440

1.4 Other Interest Income 97,179 167,058

1.5 Total Interest Income 21,679,714 22,120,026

2 INTEREST EXPENSES

2.1 Customer deposits 3,390,131 3,055,238

2.2 Deposits and placements from banking institutions 1,487,502 1,088,630

2.3 Other Interest Expenses 64,322 96,276

2.4 Total Interest Expenses 4,941,955 4,240,144

3 NET INTEREST INCOME/(LOSS) 16,737,759 17,879,882

4 NON-INTERESTINCOME

4.1 Fees and commissions on loans and advances 900,162 373,573

4.2 Other fees and commissions 2,900,056 3,441,529

4.3 Foreign Exchange trading income/(loss) 2,278,145 2,017,484

4.4 Dividend Income - -

4.5 Other income 947,645 2,281,970

4.6 Total Non-Interest Income 7,026,008 8,114,556

5 TOTAL OPERATING INCOME 23,763,767 25,994,438

6 OTHER OPERATING EXPENSES

6.1 Loan loss provision 987,134 1,308,416

6.2 Staff costs 4,944,460 5,600,237

6.3 Directors emoluments 142,356 166,154

6.4 Rentals charges 499,277 501,397

6.5 Depreciation charge on property and equipment 544,604 497,451

6.6 Amortisation charges 438,845 493,814

6.7 Other operating expenses 2,890,886 3,127,157

6.8 Total Other Operating Expenses 10,447,562 11,694,626

7 Profit/(loss) before tax and exceptional items 13,316,205 14,299,812

8 Exceptional items - -

9 Profit/(loss) after exceptional items 13,316,205 14,299,812

10 Current tax (4,063,090) (3,923,309)

11 Deferred tax (16,878) 27,773

12 Profit/(loss) after tax and exceptional items 9,236,237 10,404,276

13 Minority Interest - -

14 Profit/(loss) after tax,exceptional items and minority interest 9,236,237 10,404,276 15 Other Comprehensive Income

15.1 Gains/(Losses) from translating the financial statements of foreign operations - - 15.2 Fair value changes in available for sale financial assets 319,056 (60,925) 15.3 Revaluation surplus on Property,plant and equipment - 229,784 15.4 Share of other comprehensive income of associates - - 15.5 Income tax relating to components of other comprehensive income (95,717) (43,967) 16 Other Comprehensive Income for the year net of tax 223,339 124,892 17 Total comprehensive income for the year 9,459,576 10,529,168

18 EARNINGS PER SHARE - BASIC & DILUTED 29.33 33.11

19 DIVIDEND PER SHARE - DECLARED 14.50 17.00

(5)

STANDARD CHARTERED BANK KENYA LIMITED

FULL YEAR FINANCIAL STATEMENTS AND OTHER DISCLOSURES

III. OTHER DISCLOSURES

31.12.2013 31.12.2014

KShs ‘000 KShs ‘000

1) NON-PERFORMING LOANS AND ADVANCES

a) Gross non-performing loans and advances 3,848,116 10,752,493

Less

b) Interest in suspense 741,290 1,864,929

c) Net Non-Performing Loans and Advances (a-b) 3,106,826 8,887,564 Less

d) Loan loss Provisions 1,509,561 4,153,415

e) Net Non-Performing Loans (c-d) 1,597,265 4,734,149

f) Realizable Value of Securities 1,386,964 4,407,151

g) Net NPLs Exposure (e-f) 210,301 326,998

2) INSIDER LOANS AND ADVANCES

a) Directors, shareholders and associates 46,353 33,787

b) Employees 4,208,868 5,188,206

c) Total Insider Loans, Advances and Other Facilities 4,255,221 5,221,993 3) OFF-BALANCE SHEET ITEMS

a) Letters of credit, guarantees, acceptances 36,849,251 48,672,342

b) Forwards, swaps and options 66,097,262 45,836,304

c) Other contingent liabilities

- -

d) Total Contingent Liabilities 102,946,513 94,508,646

4) CAPITAL STRENGTH

a) Core Capital 25,830,792 28,944,042

b) Minimum Statutory Capital 1,000,000 1,000,000

c) Excess/(Deficiency) 24,830,792 27,944,042

d) Supplementary Capital 4,889,731 7,344,145

e) Total capital (a+d) 30,720,523 36,288,187

f) Total risk weighted assets 147,682,332 183,104,659

g) Core capital/total deposit liabilities 17% 19%

h) Minimum Statutory Ratio 8% 8%

i) Excess/(Deficiency) (g-h) 9% 11%

j) Core capital/total risk weighted assets 17% 16%

k) Minimum Statutory Ratio 8% 8%

l) Excess/(Deficiency) (j-k) 9% 8%

m) Total capital/total risk weighted assets 21% 20%

n) Minimum Statutory Ratio 12% 12%

o) Excess/(Deficiency) (m-n) 9% 8%

5) LIQUIDITY

a) Liquidity Ratio 38% 46%

b) Minimum Statutory Ratio 20% 20%

c) Excess/(Deficiency) (a-b) 18% 26%

(6)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014

Capital Statutory

Share Share contribution Revaluation Fair value credit risk Retained Proposed

capital premium reserve reserve reserve reserve earnings dividends Total

KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000 KShs ‘000

At 1 January 2014 1,825,798 7,792,427 1,888,873 450,223 155,958 1,323,070 18,119,239 4,650,813 36,206,401

Net profit for the year - - - - 10,436,180 - 10,436,180 Other comprehensive income

Re-measurement of retirement benefit obligation - - - - 7,200 - 7,200 Deferred tax on re-measurement of retirement benefit obligation - - - - (2,160) - (2,160) Change in fair value of available-for-sale investments - - - - (68,125) - - - (68,125) Deferred tax on change in fair value of available-for-sale investments - - - - 20,438 - - - 20,438 Realised revaluation reserves on sale of property - - - (43,128) - - 43,128 - - Deferred tax on realised revaluation reserves on sale of property - - - 13,079 - - (13,079) - - Revaluation surplus - - - 229,784 - - - - 229,784 Deferred tax on revaluation surplus - - - (62,245) - - - - (62,245) Excess depreciation transfer - - - (5,723) - - 5,723 - - Deferred tax on excess depreciation transfer - - - 1,717 - - (1,717) - - Transfer to statutory credit risk reserve - - - - - 2,356,353 (2,356,353) - - Total other comprehensive income - - - 133,484 (47,687) 2,356,353 (2,317,258) - 124,892 Total comprehensive income for the year - - - 133,484 (47,687) 2,356,353 8,118,922 - 10,561,072 Transactions with owners, recorded directly in equity

Share based payments:

- 2013 paid - - (65,200) - - - - - (65,200)

- 2014 accrual - - 81,242 - - - - - 81,242

Dividends Paid

- Ordinary shares - 2013 Final - - - - (4,482,813) (4,482,813) - Preference Shares - 2013 Final - - - - (168,000) (168,000) - Ordinary shares - 2014 Interim - - - - (1,391,218) - (1,391,218) - Preference Shares - 2014 Interim - - - - (83,310) - (83,310) Proposed final dividends:

- Ordinary shares - - - - (3,864,494) 3,864,494 -

- Preference Shares - - - - (84,690) 84,690 - Total contributions by and distributions to owners - - 16,042 - - - (5,423,712) (701,629) (6,109,299) At 31 December 2014 1,825,798 7,792,427 1,904,915 583,707 108,271 3,679,423 20,814,449 3,949,184 40,658,174

(7)

STANDARD CHARTERED BANK KENYA LIMITED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2013

At 1 January 2013 1,825,798 7,792,427 1,889,052 521,435 (67,381) 454,017 14,304,972 4,032,494 30,752,814

Re-measurement of retirement benefit obligation - - - - Deferred tax on re-measurement of retirement benefit obligation - - - - Change in fair value of available-for-sale investments - - - - 319,056 - - - 319,056 Deferred tax on change in fair value of available-for-sale investments - - - (95,717) - - - (95,717) Realised revaluation reserves on sale of property - - - (93,216) - - 93,216 - - Deferred tax on realised revaluation reserves on sale of property - - - 27,965 - - (27,965) - - Revaluation surplus - - - - Deferred tax on revaluation surplus - - - - Excess depreciation transfer - - - (8,316) - - 8,316 - - Deferred tax on excess depreciation transfer - - - 2,355 - - (2,355) - - Transfer to statutory credit risk reserve - - - - - 869,053 (869,053) - - Total other comprehensive income - - - (71,212) 223,339 869,053 (797,841) - 223,339 Total comprehensive income for the year - - - (71,212) 223,339 869,053 8,465,080 - 9,486,260 Transactions with owners, recorded directly in equity

- 2012 paid - - (65,379) - - - - - (65,379)

- 2013 accrual - - 65,200 - - - - - 65,200

Dividends Paid

- Ordinary shares - 2012 Final - - - - (3,864,494) (3,864,494) - Preference Shares - 2012 Final - - - - (168,000) (168,000) - Ordinary shares - 2013 Interim - - - - - Preference Shares - 2013 Interim - - - - Proposed final dividends:

- Ordinary shares - - - - (4,482,813) 4,482,813 -

- Preference Shares - - - - (168,000) 168,000 - Total contributions by and distributions to owners - - (179) - - - (4,650,813) 618,319 (4,032,673) At 31 December 2013 1,825,798 7,792,427 1,888,873 450,223 155,958 1,323,070 18,119,239 4,650,813 36,206,401

(8)

COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2014

At 1 January 2014 1,825,798 7,792,427 1,888,873 450,223 155,958 1,323,070 17,942,822 4,650,813 36,029,984

Re-measurement of retirement benefit obligation - - - - 7,200 - 7,200 Deferred tax on re-measurement of retirement benefit obligation - - - - (2,160) - (2,160) Change in fair value of available-for-sale investments - - - - (68,125) - - - (68,125) Deferred tax on change in fair value of available-for-sale investments - - - - 20,438 - - - 20,438 Realised revaluation reserves on sale of property - - - (43,128) - - 43,128 - - Deferred tax on realised revaluation reserves on sale of property - - - 13,079 - - (13,079) - - Revaluation surplus - - - 229,784 - - - - 229,784 Deferred tax on revaluation surplus - - - (62,245) - - - - (62,245) Excess depreciation transfer - - - (5,723) - - 5,723 - - Deferred tax on excess depreciation transfer - - - 1,717 - - (1,717) - - Transfer to statutory credit risk reserve - - - - - 2,356,353 (2,356,353) - - Total other comprehensive income - - - 133,484 (47,687) 2,356,353 (2,317,258) - 124,892 Total comprehensive income for the year - - - 133,484 (47,687) 2,356,353 8,087,018 - 10,529,168 Transactions with owners, recorded directly in equity

- 2013 paid - - (65,200) - - - - - (65,200)

- 2014 accrual - - 81,242 - - - - - 81,242

Dividends Paid

- Ordinary shares - 2013 Final - - - - (4,482,813) (4,482,813) - Preference Shares - 2013 Final - - - - (168,000) (168,000) - Ordinary shares - 2014 Interim - - - - (1,391,218) - (1,391,218) - Preference Shares - 2014 Interim - - - - (83,310) - (83,310) Proposed final dividends:

- Ordinary shares - - - - (3,864,494) 3,864,494 -

- Preference Shares - - - - (84,690) 84,690 - Total contributions by and distributions to owners - - 16,042 - - - (5,423,712) (701,629) (6,109,299) At 31 December 2014 1,825,798 7,792,427 1,904,915 583,707 108,271 3,679,423 20,606,128 3,949,184 40,449,853

(9)

STANDARD CHARTERED BANK KENYA LIMITED COMPANY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2013

At 1 January 2013 1,825,798 7,792,427 1,889,052 521,435 (67,381) 454,017 14,155,239 4,032,494 30,603,081

Re-measurement of retirement benefit obligation - - - - Deferred tax on re-measurement of retirement benefit obligation - - - - Change in fair value of available-for-sale investments - - - - 319,056 - - - 319,056 Deferred tax on change in fair value of available-for-sale investments - - - (95,717) - - - (95,717) Realised revaluation reserves on sale of property - - - (93,216) - - 93,216 - - Deferred tax on realised revaluation reserves on sale of property - - - 27,965 - - (27,965) - - Revaluation surplus - - - - Deferred tax on revaluation surplus - - - - Excess depreciation transfer - - - (8,316) - - 8,316 - - Deferred tax on excess depreciation transfer - - - 2,355 - - (2,355) - - Transfer to statutory credit risk reserve - - - - - 869,053 (869,053) - - Total other comprehensive income - - - (71,212) 223,339 869,053 (797,841) - 223,339 Total comprehensive income for the year - - - (71,212) 223,339 869,053 8,438,396 - 9,459,576 Transactions with owners, recorded directly in equity

- 2012 paid - - (65,379) - - - - - (65,379)

- 2013 accrual - - 65,200 - - - - - 65,200

Dividends Paid

- Ordinary shares - 2012 Final - - - - (3,864,494) (3,864,494) - Preference Shares - 2012 Final - - - - (168,000) (168,000) - Ordinary shares - 2013 Interim - - - - - Preference Shares - 2013 Interim - - - - Proposed final dividends:

- Ordinary shares - - - - (4,482,813) 4,482,813 -

- Preference Shares - - - - (168,000) 168,000 - Total contributions by and distributions to owners - - (179) - - - (4,650,813) 618,319 (4,032,673) At 31 December 2013 1,825,798 7,792,427 1,888,873 450,223 155,958 1,323,070 17,942,822 4,650,813 36,029,984

(10)

CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 31 DECEMBER 2014

2014 2013

KShs ‘000 KShs ‘000

Profit before taxation 14,345,981 13,354,965

Depreciation 497,451 544,604

Amortisation of intangible assets 490,885 436,609

Profit on sale of non-current asset held for sale (1,535,240) (141,851)

Loss on sale of property and equipment 306 13,270

Profit on sale of property and equipment (1,456) -

Amortisation of prepaid operating lease rentals 2,929 2,236

Retirement benefit obligations 37,900 40,500

Reversal of revaluation deficit from prior years 1,458 - (Increase)/decrease in operating assets

Balances with Central Bank of Kenya

– Cash Reserve Ratio (232,369) (987,823)

Government and other securities held for trading (597,112) 435,621

Derivative financial instruments 140,860 115,486

Loans and advances to banks 84,096 (9,096)

Loans and advances to customers 6,922,771 (16,977,481)

Investment securities (1,045,933) (10,416,958)

Amounts due from group companies (132,000) 3,906,261

Other assets (602,292) 88,561

Increase/(decrease) in operating liabilities

Deposits from banks - (2,219,002)

Deposits from customers (653,080) 14,195,165

Derivative financial instruments 14,583 (243,434)

Amounts due to group companies 2,109,761 (595,944)

Defined benefit obligations (35,000) (56,500)

Other liabilities (562,755) 114,286

Cash flows from operating activities 19,251,744 1,599,475

Income taxes paid (3,914,076) (5,110,807)

Net cash from/(used in) operating activities 15,337,668 (3,511,332) Cash flows from investing activities

Purchase of property and equipment (174,734) (449,656)

Proceeds from sale of non-current asset held for sale 1,579,093 265,578 Proceeds from sale of property and equipment 2,417 550

Purchase of intangible assets (78,015) (30,049)

Net cash from/(used in) investing activities 1,328,761 (213,577) Cash flows from financing activities

– 2013/2012 settled (65,200) (65,379)

– 2014/2013 allocated during the year 81,242 65,200 Dividends paid on ordinary shares:

– Final 2013/2012 (4,482,813) (3,864,494)

– Interim 2014/2013 (1,391,218) -

Dividends paid on preference shares:

– Final 2013/2012 (168,000) (168,000)

– Interim 2014/2013 (83,310) -

Net cash used in financing activities (6,109,299) (4,032,673) Increase/(decrease) in cash and cash equivalents 10,557,130 (7,757,582)

Cash and cash equivalents at 1 January (4,747,419) 3,010,163

Cash and cash equivalents at 31 December 5,809,711 (4,747,419) Analysis of the balance of cash and cash equivalents

Cash on hand 3,742,061 3,991,672

Unrestricted cash balances with Central Bank of Kenya 3,310,880 1,955,559

Treasury bills 991,260 -

Loans and advances to banks 3,552,936 764,771

Deposits from banks (9,106,326) (8,590,814)

Amounts due from group companies 8,282,305 5,874,651

Amounts due to group companies (4,963,405) (8,743,258)

5,809,711

(4,747,419)