Annual REPORT

ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2015
NOTES TO THE FINANCIAL STATEMENTS (Continued)
32. OPERATING SEGMENTS
For management purposes, the Bank is organised into two main operating segments based on products and services as follows:
i) Retail Banking: Includes loans deposits and other transactions and balances with retail customers;
ii) Wholesale Banking: Includes loans deposits and other transactions and balances with corporate and institutional customers.
Management monitors the operating results of its business units separately for the purpose of making decisions about resource allocation and performance
assessment. Segment performance is evaluated based on operating profit or loss. Income taxes are managed on a group basis and are not allocated
to operating segments. The Group’s segment operations are all financial with a majority of revenues deriving from interest. The management
relies primarily on net interest revenue to assess the performance of the segment. Interest income is reported net as management primarily relies
on net interest revenue as a performance measure, not gross income and expenses. No revenue from transactions with a single external customer or
counterparty amounted to 10% or more of the Bank’s total revenue in 2015 or 2014.
The following table presents income and profit and certain asset and liability information regarding the Group’s operating segements,
Profit or loss for the year ended 31 December 2015
Whole sale banking Retail banking
Other
Total
Sh’000 Sh’000 Sh’000 Sh’000
Net interest income 2,556,973 3,835,459 - 6,392,431
Other income 1,125,647 1,688,471 170,409 2,984,527
__________ _________ _________ _________
Operating income 3,682,620 5,523,930 170,409 9,376,958
__________ _________ _________ ________
Depreciation and amortisation (222,003) (333,005) (1,560) (556,568)
Other Operating Expenses (2,256,569) (3,393,819) (295,986) (5,946,374)
Share of Profit Subsidiary - - 83,111 83,111
________ _________ _________ ________
Profit before tax 1,204,048 1,797,106 (44,026) 2,957,128
Profit or loss for the year ended 31 December 2014
============= ============= ============== =============
Net interest income 2,148,287 3,222,431 - 5,370,718
Other income 1,021,914 1,532,871 86,968 2,641,753
__________ _________ _________ _________
Operating income 3,170,201 4,755,302 86,968 8,012,471
__________ _________ _________ ________
Depreciation &Amortisation (148,544) (222,816) (827) (372,186)
Other Operating Expenses (1,834,112) (2,751,167) (426,163) (5,011,443)
Share of Profit Subsidiary - - 36,218 36,218
_________ _________ _________ ________
Profit before tax 1,187,545 1,781,319 (303,804) 2,665,060
============= ============= =============== ============
96