Consolidated Bank shakes off losses to post Ksh 198M profit

Consolidated Bank has reported net profit of Ksh 198.2 million for the twelve months period to December last year powered by strong income.

The bank made the recovery from a loss of Ksh 155.2 million reported the previous year after reporting a historic total operating income which rose by 28pc to Ksh 1.9 billion from Ksh 1.5 billion reported the previous year.

Consolidated Bank Acting Chief Executive Officer Dr Dominic Murage said the performance was also on the backdrop of its strategy to turnaround the state-owned lender.

“This performance demonstrates the impact of the strategic efficiency measures we implemented across the business, which have enabled significant cost savings. Maintaining these efficiency levels will remain a priority going forward,” said Dr. Murage.

Interest earnings from loans and advances grew 38pc to Ksh.1.3 billion, from Ksh.940 million reported in the previous year, while non-funded income grew surged by 11pc to Ksh 631 million from Ksh 568 million.

Cost rationalization saw the bank’s operating expenses rise marginally by 1pc to Ksh 1.7 billon from Ksh 1.6 billion

The bank which is being considered for privatization by the National Treasury grew its loan book marginally from Ksh 8.5 billion to Ksh 8.6 billion as provisions for loan impairments grew by 23pc to Ksh 288 million due to the tough operating environment it says most businesses operated in and the its principles of prudence in risk management.

Murage said the lender will continue focusing on Small and Medium Enterprises (SMEs) lending where majority of its clients are.

“Additionally, as a government‑owned institution, we are uniquely positioned to support public sector financing needs. We aim to strengthen our collaboration with government agencies, parastatals, universities and ministries to position Consolidated Bank as the preferred banking partner for the public sector” he added.

During the year under review, the Consolidated Bank assets grew by 11pc to Ksh 19.5 billion on strong investment from government securities.

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