advertisement

Companies

Credit Bank’s profit rises to Sh138 million

The bank cut its rate from 21.5 per cent to 14 per cent in the wake of the interest cap law towards the end of last year. FILE PHOTO | NMG
The bank cut its rate from 21.5 per cent to 14 per cent in the wake of the interest cap law towards the end of last year. FILE PHOTO | NMG 

SME-focused Credit Bank’s profit after tax for the nine months to the end of September grew by 8.5 per cent.

The lender, which hired a new chief executive barely a month ago, saw its profit increase to Sh138.2 million from Sh127.36 million it posted in a similar period last year.

A number of banks have posted lower profitability this year compared to last year, having taken a hit from the law that caps interest rates which took effect last September.

The bank cut its rate from 21.5 per cent to 14 per cent in the wake of the interest cap law towards the end of last year.

During the period under review, the bank’s liabilities rose to Sh11.8 billion from Sh9.4 billion posted in a similar period last year. Credit Bank’s total assets also rose during the period.

While the bank’s operating income increased to Sh1.03 billion in the period from Sh896 million in the same season last year, interest income from loans dropped by Sh68 million. Interest from loans was down to Sh1.12 billion in a similar period in 2017 from Sh1.19 billion in 2016.

The bank appointed Ms Betty Korir as its new chief executive following the crossing over of Chege Thumbi to Sidian Bank.

Mr Thumbi joined Sidian Bank in July after Titus Karanja quit the top post to “pursue other interests.”

Ms Korir has served as the bank’s head of credit and deputy chief executive over the last four years.

She will be expected to leverage her 20-year experience in the banking sector to sustain the bank’s growth

The lender is linked to the family of Moi-era politician Simeon Nyachae.

advertisement