Spire Bank back from loss to post Sh81m profit

Companies

Spire Bank back from loss to post Sh81m profit

Tuesday, September 3, 2019 23:17

By OTIATO GUGUYU

Teachers-owned lender Spire Bank has multiplied other income 12 times to boost declining revenues from issuing loans and post Sh81.4 million in net profit for the six months to June.

The lender, which is majority owned by Mwalimu National Sacco, sprang back from a Sh419.5 million loss in a similar period last year.

Spire Bank’s other income jumped from Sh16 million last year to Sh198 million in June, boosting non-interest income which was Sh269 million better than the Sh99 million posted last year.

Loan incomes from government and customers came lower at Sh319 million down from Sh477 million last year as loans declined from Sh4.8 billion to Sh3.7 billion.

The lender managed to tame expenses on customer deposits from Sh196 million to Sh172 million mainly on loss of some of the deposits. Deposits stood at Sh4.6 billion by June this year down from Sh6.6 billion in a similar period in 2018.

The lender, which continues to hold Sh2.1 billion deposits from Central Bank of Kenya, has improved its core capital position from negative 1.1 billion last year to negative 740 million.

Its liquidity ration however sunk further afoul of CBK requirements at 8.9 percent, down from 9.6 percent while CBK requires a minimum ratio of 20 percent.