Kenya's mid-tier lender annual net loss nearly triples and hits USD10m

The bank was unable to withstand the mixed operating environment last year which was occasioned by prolonged electioneering period.

The mid-tier lender, which attracted public scrutiny in 2016 after being mentioned in the infamous NYS scandal, saw its net loss of Sh352.2 million ($3.52m) in 2016 increase by Sh648 million ($6.48m) to Sh1 billion ($10m).

The lender attributed its tribulations to among other factors effects of interest cap, tough operational environment brought about by prolonged general elections and a reduction in net interest income which dipped 37.7 percent to 4.38 billion shillings during the period.

As effects of the interest rate cap persists, which the government last week announced it would be scrapping due to its negative impact on the economy, the bank recorded a reduction in lending as loans and advances were down 39% from  Sh10 billion ($100m) to Sh6.1 billion ($61m).

The bank was unable to withstand the mixed operating environment last year which  was occasioned by prolonged electioneering period and as a result saw the bank cut its total operating expenses to Sh7.9 billion ($79m) , down from Sh8.5 billion ($85m) recorded in 2016.

Similarly total liabilities also increased marginally by 1.1 percent to Sh57.4 billion ($574m) up from KES 56.7 ($567m) billion realized in 2016.

Net non-performing loans also surged 63% to stand at Sh6 billion ($60m) up from Sh3.7 billion ($37m).

There was however, a marginal increase in non-interest income in 2017 which stood at Sh2.2 billion ($22m) last year compared to KES 2 billion ($20m) posted a year earlier.

JOIN OUR PULSE COMMUNITY!

Unblock notifications in browser settings.

Eyewitness? Submit your stories now via social or:

Email: news@pulselive.co.ke

Recommended articles

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Africa’s richest man Aliko Dangote poised to overtake another Russian billionaire Vladimir Lisin on Bloomberg billionaires list

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Mzee Kibor's will made public, revealing how vast wealth and millions will be distributed

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Ini Edo posts new photos amid reports of welcoming a baby through surrogacy

Referee behind chaos at AFCON was rushed to hospital after match

Referee behind chaos at AFCON was rushed to hospital after match

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Eddie Butita speaks on his fallout with Miss Mandi, offers her a job

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Africa's richest man, Aliko Dangote, adds extra $915 million to his vast wealth in Q1 2022

Zuchu forced to apologize to fans after viral video raised eyebrows

Zuchu forced to apologize to fans after viral video raised eyebrows

Willy Paul wins against Diana Marua in court

Willy Paul wins against Diana Marua in court

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi

KDF moves to forcibly acquire Sh 500M supermarket land in Nairobi