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COMMENTARY ON THE 1STQUARTER 2018 RESULTS

Financials

  • The bank’s performance for the first quarter 2018 was adversely affected by the difficult operating environment, the impact of interest rates capping and lack of adequate capital to meet regulatory requirements and implement the business strategy.
  • The net advances declined by 9% to Kshs 7.9 billion in March 2018 compared to Kshs 8.7 billion the same period last year while customer deposits declined by 8% to Kshs 8.4 billion from Kshs 9.2 billion the same period last year.
  • Interest income declined by 13% to Kshs 304 million from Kshs 344 million while interest expense declined by 18% to Kshs 208 million from Kshs 218 million. Overall the net interest income declined to Kshs 95 million from Kshs 126 million the same period last year.
  • Operating expenses declined by 13% to Kshs 326 million due to decline in impairment charge.
  • The bank recorded a pre-tax loss of KShs 138 million in the period ending 31 March 2018.

Strategic Positioning

  • Consolidated Bank is 100% owned by the Government of Kenya. The National Treasury owns 78% of the ordinary share capital; the National Social Security Fund owns 5% while other state corporations own the balance of 17%.
  • Capital determines the volume of business a bank can underwrite. The Board of Directors of Consolidated Bank has been consulting the National Treasury with a view of unlocking the full potential of the bank through recapitalization.
  • On the basis of these consultations, the National Treasury injected bridging capital of Kshs 500 million on 21 May 2018 to immediately shore up the capital levels and support the bank as it implements a long term recapitalization solution. Further consultations with the other shareholders are ongoing.
  • A Transaction Advisor was appointed on 10th May 2018 to facilitate implementation of the long term capital solution.
  • The Transaction Advisor is currently undertaking a comprehensive due diligence on thebank after which they will advise and help implement the most appropriate capital raising option .
  • The bank continues to provide excellent customer service underpinned by an excellent technology platform that allows customers to transact at any of our branches and through the digital channels.

The Board of Directors, Management and Staff of Consolidated Bank wishes to thank all our customers for their continued loyalty and support. We look forward to serving you better with more innovative products and services because we know WE’RE BETTER TOGETHER.

Download(pdf): Financials Commentary

 

Customer Newsletter – December 2017 Issue

Welcome to the second issue of the Sorter year 2017. The past half year has been good and the second half has been even better with a beehive of activities which include but are not limited to:
• The Customer Service week
• Corporate Social Responsibility Initiatives
• EMV MasterCard Migration
• Q-Less Banking upgrade (Digital Banking)

Download PDF Issue

Customer Newsletter – January 2017 Issue

2016 was a unique year in many aspects for Consolidated Bank and the wider banking industry. The Banking (Amendment) Bill 2015 has profoundly changed the Kenyan financial services industry. The impact has been immense and I am sure you too have felt it in your daily lives. The new law pegs interest rates for credit and deposit products to the Central Bank Rate.

Download PDF Issue

Customer Service Week

Officials from The institute of Customer Experience(ICX) led by Ms. Purity Mithika present a Nomination Award for Most Sustainable initiative – during the Customer Service Week 2017 to our CEO - Mr. Thomas Kiyai who is accompanied by CCO - Mr. Japheth Kisilu and Marketing Manager - Ms. Martha Kibi.

Officials from The institute of Customer Experience(ICX) led by Ms. Purity Mithika present a Nomination Award for Most Sustainable initiative – during the Customer Service Week 2017 to our CEO Continue Reading…

2017 AGM NOTICE AND AGENDA

NOTICE IS HEREBY GIVEN THAT THE TWENTY FIFTH ANNUAL GENERAL MEETING OF THE COMPANY WILL BE HELD AT THE CROWNE PLAZA HOTEL NAIROBI ON THURSDAY, 27TH JULY 2017, AT 12.00 P.M.

AGENDA

1. To read the notice convening the meeting.

2. To confirm the minutes of the Twenty Fourth Annual General Meeting held on the 15th July 2016.

3. To consider and, if approved, adopt the Financial Statements of the Company for the year ended 31st December 2016, together with the Directors` and Auditors` report thereon.

4. To authorize the board to fix the Directors` remuneration. Continue Reading…

Audited Financials for the period ending 31st December 2016

Financial performance

The Bank’s financial performance for the year 2016 has been influenced by both external and internal
factors which include the difficult economic environment, the turbulence experienced in the banking sector, the implementation of interest rates capping in the fourth quarter and the lack of adequate capital to meet regulatory requirements and support execution of the Bank’s business plan for the year.

Continue Reading…