More than twenty four years have passed since Trans-National Bank was founded. Over this time, we have leveraged the excellent resources and reputation of the bank to capture banking opportunities and to facilitate growth.

In the last few years, we have combined our expertise to deliver outstanding value to our employees, shareholders and customers, to establish Transnational Bank as a well managed and profitable bank with its rightful role as a market player.

The highlights of performance under the previous strategy 2006-8 are the embracing of the Risk Management function where Board oversight on Risk Management and Corporate Governance has been improved. New bank policies have since been formulated and are now under implementation. The Bank’s Market Share including Deposits, Income and Profits achieved expected growth in the period and Customer Service levels have been improved while the bank carried out humanitarian activities.

In an increasingly turbulent financial environment, Transnational Bank has performed well, delivering good operating profit growth. The Bank’s net profit for the 12 months to 31 December 2008 was Ksh.132 million. Other key financial highlights for the year 2008 included:

• Operating Income of Ksh. 469 million
• Total assets at Ksh. 3.414 billion
• Customer loans at Ksh. 1.441 billion
• Customer deposits at Ksh. 1.891 billion.
• Liquidity level of 81.9%.
• Return on equity of 9.9%
• Earning per share of Ksh.4.54 (22.7%)
• Core capital of Ksh. 1.235 billion

Our dividend policy has ensured that the Bank’s present level of core capital is sufficient for our present and future operations needs and meets all CBK and Basel II capital requirements.

Kenya is an open market and we are not insulated from the effects of the global financial crisis. The current world economic crisis is attributed to high oil prices, high food prices and the collapse of a substantial housing bubble cantered in the United States, which sparked an interrelated and ongoing financial crisis. Around the world, many large and well established investment and commercial banks suffered massive losses and even faced bankruptcy. Trans- National Bank has been working to overcome the challenges that this unprecedented global crisis is imposing and our current strategy has put in place measures to ensure the stability of this bank. We remain committed to supporting the various measures and initiatives taken by the government and the Central Bank on this matter.

Our key focus during 2009 and beyond is on growth at a profitable level while preserving shareholder value and liquidity management. This will be achieved through further strengthening and modernising risk management programmes and improving our credit management. We will further enhance our service delivery by improving on the manpower quality and internal processes.

The bank will pursue the objective of building strategic alliances and aspire to go public in the next three years and remain committed to the principles of good corporate governance and full compliance with all regulations.

In order to achieve the desired growth, there is need to expand our outreach by opening new branches. We are planning to open nine new branches in the next three years. Kericho and Nandi Hill Branches are under refurbishment and will be operational in the next few weeks.

While 2009 is expected to be a difficult year for the banking and financial sectors, we are entering this challenging time in a strong position. Following our robust performance in 2008 and with an exceptional and dedicated management team, we are optimistic about Trans National’s prospects for the current financial year. We have adequate resources that will enable us to continue to pursue our long term strategy and we are confident that in spite of uncertainty in global markets, the Kenya economic and political forecasts, we will continue to achieve our goals.

The year 2009 will be a time for caution, and the Board of Directors and Executive Management’s first priority will be to maintain Trans-national’s financial position and the momentum we have gathered to strengthen our core businesses.

I would like to thank the bank’s shareholders and Board of Directors for their cooperation and valued support.

Finally, I would like to recognize the hard work and professionalism of Trans-national’s management team and employees and to thank our customers for their continued support and trust.

 

Michael Cherwon

Chairman