Kingdom Bank’s net profit increased by 42% in six months to Ksh.421.7 million from Ksh.296.7 million.
The expansion of the Co-operative Bank subsidiary has been aided by a 37.5 percent decrease in total operating expenditures to Ksh.1 billion.
The bank’s decreased expenses are backed by loan-loss write-backs of Ksh.170.8 million, compared to Ksh.391.7 million in loan-loss provisions last year.
The withdrawal of the loan default cover is anchored on a 10.4 per cent dip in gross-non-performing loans to Ksh.6 billion.
Lower operational costs have helped counterbalance a 26.3 percent drop in bank profits to Ksh.1.4 billion.
Net interest income declined 13.3% to Ksh.1.3 billion from Ksh.1.5 billion due to 4.1 percent loan book attrition during the quarter.
Meanwhile, non-interest funded revenue declined by 64.7 percent to Ksh.138.7 million due to the loss of other income.
Despite loan book attrition, Kingdom Bank’s asset base has increased marginally to Ksh.32.9 billion from Ksh.32.1 billion earlier.
The bank’s customer deposits have grow by 45.1 per cent to Ksh.7.4 million in the period.
