NAIROBI, Kenya, Mar 22 – Credit Bank has posted a 277 percent growth in profit for the financial year ending December 2016.
The bank bounced back to profitability to record a net profit of Sh105 million from a loss of Sh59 million in 2015.
Credit Bank Chief Executive Chege Thumbi says a focus on non-interest incomes and on entrepreneurs has turned the fortunes of the third-tier bank.
Interest income grew by 30 percent to Sh802 million, while non-funded income grew by 119 percent to 432 million
“Over the last 24 months, we looked at our business and decided to create solutions together with our customers. Many of the customers that have come to the bank have actually not borrowed any money but we have provided solutions. If you look at our trade finance, we used to bring in Sh300 to 500 million, today we are doing Sh4 billion,” said Thumbi.
Diversification of revenue streams and services has also seen customer numbers triple as deposits grew by 22 percent over the period, and loans by 11 percent to reach Sh7.8 billion.
The bank has launched a business leadership and knowledge hub to nurture and create a mentorship forum for SMEs.
“This will be a new flagship series for the SME Business Community. We understand there is real value for the business community to come together at this stage and we look forward to making this a successful venture to our members at the Impact Hub,” said Thumbi.