News

cbkMost of the 43 licensed commercial banks in the country list the tourism sector as the most insecure this quarter, Central Bank of Kenya (CBK) quarterly credit report shows.
CBK said the sector that has struggled since record Sh103 billion earnings in 2011, is the only out of 11 that has been singled out as likely to default on loans.
In the report posted on its Website, CBK however said some banks are also encouraged to lend because of the July-December 2015 tourism high season.


The government has set aside Sh5.2 billion to fund the sector’s recovery and this might boost lender’s confidence.
The CBK’s report following last month’s survey indicates that banks issued Sh380 billion in loans for the year period to June to bring their total portfolio to Sh2.16 trillion-a 21.35 percent growth over Sh1.78 trillion posted 12 months earlier.
The jump in loans helped increase the industry’s profit before tax to Sh76.90 billion from Sh71.02 billion, a relatively slower growth of 8.28 percent, largely because of the little increase in interest rates, the industry’s largest source of income.
Assets soured by Sh630 billion over the year period to June 30, increasing the industry’s wealth to Sh3.60 trillion, a 21.12 percent growth over Sh2.97 billion in June last year. Deposits rose by Sh420 billion to close at Sh2.57 trillion in June.
            o………………………………………Ends…………………………………o