Ecobank Kenya more than doubled its net profit for the six months booking Sh140 million after-tax earnings from Sh61 million for the same period last year.
The bank’s bad loans proportion compares at 14 percent of its loans book, which is still higher than the industry rate of 12.6 percent, according to central bank data.
Pan African lender Ecobank Kenya has reduced bad loans by 62 percent through recovery and restructuring in the half year to June.
The lender’s non-performing loans stood at Sh8.1 billion in the six months to June 2018 but fells to Sh3 billion in a similar period this year.
As such loan loss provisioning declined from Sh97 million to Sh34 million, saving shareholders a high cost for insuring bad credit.
Ecobank Kenya more than doubled its net profit for the six months booking Sh140 million after-tax earnings from Sh61 million for the same period last year.
The bank’s bad loans proportion compares at 14 percent of its loans book, which is still higher than the industry rate of 12.6 percent, according to central bank data.
“Three years ago, we embarked on a journey to strengthen our balance sheet. This has seen us consistently pursue strategies aimed at creating quality assets while laying greater emphasis on recoveries,” Ecobank told the Business Daily last week.
“We recovered some of the bad loans, wrote off others while our parent company, the Ecobank Transnational Incorporated (ETI) absorbed some. We are now at a better position to attract new quality loans and finance our customers to meet their growth needs.”
Despite growth in loans from Sh14.3 billion to Sh20.7 billion, interest gained modestly on statutory limits imposed by the rate cap to grow from Sh804 million to Sh829 million.
However, the lenders growth stemmed from buffing fees and commissions on loans which jumped 52 percent from Sh105 million to Sh161 million.
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