Mobile lending fees help raise CBA net profit to Sh3.9b
A Commercial Bank of Africa (CBA) branch along Kirinyaga road. The privately-held bank reported Sh3.9 billion in net earnings at the end of the third quarter. FILE PHOTO | SALATON NJAU
What you need to know:
The mid-tier lender saw its non-interest income, mainly M-Shwari fees, grow 70 per cent to Sh4.15 billion in the period under review..
Commercial Bank of Africa’s (CBA) after-tax profit grew 52.7 per cent in the nine months to September helped by non-interest earnings from M-Shwari fees.
The privately-held bank reported Sh3.9 billion in net earnings at the end of the third quarter.
The mid-tier lender saw its non-interest income from fees and commissions, mainly M-Shwari one-off charges, grow 70 per cent to Sh4.15 billion in the period under review, and was a key driver of the profit growth.
This growth was faster than the 11 per cent increase in interest income from loans to Sh10.3 billion, and the 17 per cent growth in earnings from government securities to Sh5.1 billion.
CBA’s loan book contracted by Sh6.3 billion to Sh106.5 billion in September 2016 from Sh112.8 billion the year before.
Provisions for bad loans nearly quadrupled to Sh2.9 billion from Sh826 million last year, highlighting deteriorating asset quality.
