The bank Group’s profits were clawed back by bad debts, which rose to Sh10.4 billion, prompting it to make Sh4.5 billion provisions. Bad loans stood at Sh6.9 billion a year ago. The country’s biggest lender by assets, Kenya Commercial Bank (KCB), led the pack with a Sh15.9 billion profit, trailed closely by Equity Bank, with Sh15.1 billion for the nine months to September. However, Equity’s net profit was up by 18 per cent from Sh12.8 billion last year, while KCB’s was up 15 per cent from 13.9 billion after tax profit reported in September last year. “In light of the new interest capping law, we expect further net interest margin erosion going forward.

Source: Standard Digital November 16, 2016 16:50 UTC