Ecobank Kenya has recorded a massive 86 percent drop in profit for the first six months. It blames the decline in profits on reduced lending amid rising bad debt.
The bank’s net earnings declined to Sh7.6 million from Sh54.70 million in 2016.
Ecobank lent out Sh8.16 billion less in loans during the review period to Sh20.78 billion, with net interest income falling 18.70 percent to Sh1.01 billion.
The local unit of the pan-African banking financial institution, Lome-based Ecobank Transnational, continued to struggle with defaults on its loan book in first six months of the year.
Total non-performing loans jumped nearly one-and-a-half fold to Sh7.13 billion from Sh2.89 billion in June 2016, forcing the lender to more than double loan loss provisions to Sh1.40 billion from Sh633.76 it had set aside 12 months earlier.