Mayfair CIB Bank books its first net profit since 2017

Mayfair CIB Bank has recorded its first net profit since its licensing in 2017 and is eying a bigger share of the retail market with Sh5 billion investment.

The bank has posted a Sh4.51 million profit for the quarter ended March, from Sh86.94 million loss in a similar period a year earlier—the first profits in four years since licensing in 2017. The bank will spend Sh5 billion this year for a larger share of retail market share through investments on internet banking, ATM points, new branches and card business.

“The performance was helped by increase in interest income and almost flat growth in operating expenses,” Mayfair CIB Bank executive director Hossam Rageh said.

Its interest income increased to Sh277.2 billion from Sh193.3 billion on increased lending in a period when most banks have gone slow on issuing loans. Increased lending saw it fees and commissions from loans more than double to Sh15.2 million.

The first profit for the bank comes a year after Egypt’s largest private lender, Commercial International Bank (CIB) acquired a controlling stake in Mayfair Bank, deepening acquisitions in the local banking sector.

The Central Bank of Kenya said the Egyptian lender was to provide Mayfair with requisite skills, resources and infrastructure to scale up its business whose target has been high net worth individuals and corporates.

“We are focused on providing saving products and diversifying our product range. Expansion into retail is depended on the digital solutions and once we are done we will be able to tap into that market,” Mr Rageh said.