Peter Kenneth-linked bank posts Sh76.8m loss

Bad loans and operating costs weighed down Mayfair Bank Limited’s earnings, leading to a net loss of Sh76.8 million in the half year ended June.

The lender, associated with city businessman and politician Peter Kenneth, said its net interest income stood at Sh49 million in the period with its loan book growing to Sh1.26 billion.

Mayfair Bank’s total non-interest income stood at Sh129.9 million.

The lender posted Sh15.8 million in loan loss provisions recording nil gross defaults in the period as total operating costs stood at Sh255.8 million.

Customer deposits stood at Sh3.1 billion in the period.

Mayfair Bank Limited was granted a license to conduct banking business by Central Bank of Kenya (CBK) in June last year.

CBK said its entry would broaden choices available to the Kenyan banking public and enhance competition in the sector.

Mayfair Bank would later indicate it will target the corporate market segment through its initial network of three branches.

Two of its branches are situated in Nairobi while the third is in Mombasa.

READ: Peter Kenneth’s Mayfair Insurance gets good rating

Mayfair’s performance bucks the trend that has seen several lenders in different tiers post profits in the half year to June. KCB announced a 17.48 per cent net profit increase to Sh12.1 billion, while Equity’s after-tax profit rose 17.52 per cent to Sh11 billion.

Co-operative Bank of Kenya announced a 7.57 per cent rise in net profit to Sh7.14 billion in the half year ended June while Stanbic Holdings’ after-tax profit more than doubled to Sh3.55 billion, boosted by improved performance in its banking business.

I&M Holdings posted a 12.77 per cent rise in net profit to Sh3.86 billion in the half year boosted by increased non-interest income.

Diamond Trust Bank’s (DTB) net profit for the half-year period ended June 30 grew by 10.05 per cent to hit Sh3.75 billion from Sh3.41 billion in a similar period last year.