Chase Bank posts Sh792mn loss in 2015

March 31, 2016
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The bank through the period has shifted its focus to Small and Medium Enterprises setting aside Sh60 billion to finance SMEs over the next three years/FILE
The bank through the period has shifted its focus to Small and Medium Enterprises setting aside Sh60 billion to finance SMEs over the next three years/FILE

, NAIROBI, Kenya, Mar 31 – Chase Bank Group has posted Sh792 million loss in 2015 compared to Sh2.3 billion profit reported in 2014.

Total interest income slumped to Sh13.5 billion from Sh15.1 billion in the period while interest expenses went up from Sh6.3 billion to Sh10.5 billion.

Staff costs also went up to Sh2.7 billion in the period under review, compared to Sh2.2 billion reported in 2014.

Total operating income stood at Sh8.7 billion compared to Sh10 billion posted in 2014.

The bank through the period has shifted its focus to Small and Medium Enterprises setting aside Sh60 billion to finance SMEs over the next three years.

On Wednesday the bank secured a Sh5 billion on-lending facility from the African Development Bank (AfDB) to support its growth strategy.

The facility has already been approved by AfDB’s Board and will further strengthen the bank’s intervention in the SME sector.

The bank’s management says through the new lending facility, the bank will be playing a critical part in addressing income inequalities by on-lending to sectors that have historically been locked out of the credit market.

The new facility will be lent across key sectors of the Kenyan economy including business services, building and construction, retail, transport, communications, manufacturing and the hospitality industry.

The announcement comes hours after National Bank of Kenya (NBK) announced a Sh1.2 billion loss for the period under review, performance was weighed down by poor income performance, a jump in loan loss provisions and accelerated costs.

K-Rep Bank recorded a drop in its full year 2015 net profit to 372 million from Sh514 million made in the year 2015.

This has been attributed to high investments in reforms that are aimed at change the bank to tier four bank from the current tier two.

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