CBA's volume of gross non-performing loans rose by 6.83 percent. FILE PHOTO | NMG
Commercial Bank of Africa (CBA) has posted a 2.87 percent jump
in net profit in the half-year ended June, boosted by higher interest
income.
The lender made a net profit of Sh2.36 billion in the period, compared to Sh2.29 billion in the same period last year.
Its total interest income jumped 1.85 percent to Sh9.81 billion as non-interest income dropped 1.85 percent to Sh5.2 billion.
CBA’S
loan book expanded by Sh6.89 billion or 5.7 percent to Sh120.2 billion
in the period from Sh113.79 billion the year before. Provisions for bad
loans went down by 82.2 percent to Sh285.5 million from Sh1.61 billion
last year, highlighting improving asset quality.
The
bank’s volume of gross non-performing loans rose by 6.83 percent, which
is the equivalent of Sh778.1 million to Sh12.16 billion during the
period under review, from the Sh11.39 billion it reported last year.
CBA is awaiting approvals from regulators for its planned merger with rival NIC Group
in what will set the stage for the creation of Kenya’s third-largest lender by assets.
The
merged lender will count among its top owners some of Kenya’s most
renowned billionaire investors and political figures, shareholder
information on the two lenders has revealed.
The
Kenyatta family currently holds a 24.92 percent stake in CBA while the
Ndegwa family, which founded NIC Bank, has a 25 percent interest in the
listed lender.
Businessman Naushad Merali will end up
with a 2.9 percent equity based on his present direct ownership of a 5.6
percent stake in CBA.
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