Business News
Bank profits fell by 8pc in 3 months: The Standard
[ad_1]
Kenyan commercial banks recorded a 7.7 per cent drop in profit before tax in the first quarter of 2020 as the economic disruption from the Covid-19 pandemic started being felt in the economy.
Data from the Central Bank of Kenya (CBK) indicates that commercial banks recorded Sh76.3 billion in profit before tax in the months of January, February and March this year, down from Sh82.7 billion made over a similar period last year.
The new figures come as commercial banks witness record spikes in non-performing loans as many businesses, particularly in the SME sector, default on their facilities as coronavirus ravages the economy. CBK Governor Patrick Njoroge last month said close to 75 per cent of SMEs may fail to re-open their doors owing to the disruption to their business models and revenue streams caused by the pandemic.
SEE ALSO: Pandemic has stressed value of cash and love
Njoroge, however, said the liquidity in the financial sector today is more robust compared to a decade ago following the global financial crisis.
Non performing loans
“Banks remain resilient and strong and the numbers indicate this,” said Njoroge at a recent briefing. “It is true that NPLs have increased to 13.1 per cent mainly in real estate, trade and manufacturing, but these loans were actually on watch on March 1st,” he said. “They have obviously been hit by many factors before and the Covid-19 pandemic has just worsened their situation.”
The amount of customer deposits also went up by Sh80 billion in March this year representing the biggest rise in deposits since June last year, when the CBK kicked off the demonetisation programme to phase out old Sh1,000 notes.
The value of gross loans also went up by Sh73 billion from Sh2.7 trillion in February this year to Sh2.8 trillion in March as more Kenyans facing dwindling earnings sought economic relief.
SEE ALSO: County governments have little option but to tighten their belts
[ad_2]
Source link
- payday loan near me5 days ago
Debit card payday improvements. cash loans in a single hour
- payday loans manassas va1 week ago
100 pay that is online loans. Payday advances for the unemployed
- Qeep review5 days ago
Jewish Women Dating: recommendations and Advice .The Jews are an individuals with a rich tradition, traditions, history, not to mention, gorgeous beauties whom frequently end up being the primary heroines of men’s goals.
- Main6 days ago
A brand new Word wide web gambling house Designed Room
- bbpeoplemeet reddit5 days ago
Among friends and family, you might be the mature one. They seek out you for advice, and also you’ve got a level at once your arms.
- Main1 week ago
An Reliable Evaluation Involving Any Flamingo Obtained in Todas las Vegas
- Main4 days ago
Trinidad California’s Natural environment History
- payday loans escondido6 days ago
Ways To Get An Online Payday Loan With No Banking Account