MayFair Bank, the country’s youngest lender, projects to break even next year after it cut net losses in nine months through September by 23.79 per cent on increased operating income.
The bank, which started operations in August 2017, has reported Sh169.49 million loss after taxation in the period from Sh222.39 million a year earlier.
Its total operating income jumped nearly five-fold to Sh218.56 million from Sh37.71 million in September 2017, while expenses increased by half to Sh388.05 million.
“The bank is on course to breaking-even in 2019,” chief executive Raminder Bir Singh said in a statement. “Liquidity remained strong at 60.4 per cent, showing the bank remained a net lender in the interbank market.”
The growth-hungry lender's shareholders include politician and businessman Peter Kenneth.
The bank, also affiliated to Mayfair Insurance Group, is set to open a new branch in Nairobi’s Industrial Area next week with plans for another outlet in Eldoret early next year.
It presently operates two branches in Nairobi and one in Mombasa.
MayFair posted a sharp growth in its loan book to Sh2.25 billion in September 2018 from Sh1.26 billion in June and Sh235.43 million in December last year.
Net interest earnings increased by 89.98 per cent to Sh71.21 million in September compared to a year earlier.
Customer deposits expanded nearly three-fold to Sh4.11 billion in September compared with 12 months earlier and double the Sh2.08 billion last December.
“This is remarkable considering this was achieved against a backdrop of prolonged electioneering period in 2017 and business uncertainty that only started improving at the end of Q1 (January-March) 2018,” Mr Singh said.
“The bank complied with prudential limits on capital adequacy, with shareholders remaining strongly committed to its long-term growth.”