Commercial Bank of Africa. [Photo/the-star.co.ke]
Commercial Bank of Africa’s (CBA) after-tax profit was nearly flat in the nine months to September on lower interest income.
CBA has reported Sh3.9 billion in net earnings at the end of the third quarter, a 2.68 per cent increase compared to a similar period last year.
The lender saw its net interest income drop by 5.48 per cent to Sh6.8 billion in the period under review from Sh7.27 billion a year earlier.
Non-interest income from fees and commissions, mainly M-Shwari one-off charges, recorded muted growth of 8.99 per cent to Sh4.56 billion. This was a key driver of the profit resilience.
This contrasted with a 14.3 per cent drop in interest income from loans to Sh8.88 billion, and a 5.47 per cent drop in earnings from government securities to Sh4.85 billion.
CBA’s loan book expanded by Sh6.89 billion or 6.47 per cent to Sh113.45 billion in September 2017 from Sh106.55 billion the year before.