African Banking Corporation (ABC) Group net profit for the year ended December 2018 slipped 41.71 percent after provisions against bad loans nearly doubled.
Profit after taxation dropped to Sh67.87 million from Sh116.44 million the previous year, the lender reported in a statement on its website.
The earnings were largely hurt by loan loss provisions which surged 95.45 percent to Sh191.83 million.
African Banking Corporation (ABC) Group net profit for the year ended December 2018 slipped 41.71 percent after provisions against bad loans nearly doubled.
Profit after taxation dropped to Sh67.87 million from Sh116.44 million the previous year, the lender reported in a statement on its website.
The earnings were largely hurt by loan loss provisions which surged 95.45 percent to Sh191.83 million.
Its loan book stood at Sh17.79 billion, a growth of 11.83 percent over the review period.
An equivalent of a fifth of the loan book or Sh3.54 billion was, however, in default, the bank’s financial performance statement show, a 21.60 percent growth over Sh2.91 billion in total non-performing loans in December 2017.
ABC mobilised Sh1.79 billion more in customer deposits in the review period to Sh22.18 billion.
The drop in the bank’s net income reflects a general trend in the bottom-tier lending space where majority of players have either reported a slump or slipped into a loss.
Small-sized lenders such as Mwalimu Sacco-controlled Spire, Centum-owned Sidian, Consolidated, First Community Transnational and DIB reported after-tax losses in the 12-month period ended last December.
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