Audited Financials for the period ending 31st December 2016
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.
As a result of the above, the overall balance sheet declined marginally by 2% to KShs 13.9 billion from KShs 14.1 billion the previous year. The net advances remained steady at KShs 9.2 billion as at 31 December 2016 compared to the same period last year. The customer deposits declined by 5% to KShs 9.5 billion from KShs 9.9 billion as at 31 December 2015 due to the tight liquidity in the market.
Net interest income declined by 33% from KShs 1 billion to KShs 686 million attributed to the impact of interest rate capping from September 2016 and increase in cost of funding by 19% compared with the previous year. Non-funded income declined by 24% to KShs 753 million from KShs 996 million due to reduced write backs from recoveries of non-performing loans. Operating expenses however reduced by 13% from KShs 1.9 billion to KShs 1.7 billion. The Bank therefore recorded an after tax loss of KShs 211 million compared with a profit of KShs 44 million the previous year.
- • Consolidated Bank is 100% government-owned. Its ordinary share capital is distributed as
- ♦ The National Treasury – 77.9%
- ♦ National Social Security Fund – 5.0%
- ♦ Other State Corporations & Agencies – 17.1%
- • The Board of Directors and Management of Consolidated Bank have been consulting the National Treasury with a view of unlocking the full potential of the Bank through recapitalization. On the basis of these consultations, it has been agreed that the main shareholders will inject capital in the business to address the immediate capital challenges as the longer term solution of privatization is pursued.
- • The Bank continues to provide excellent customer service underpinned by a first-rate technology platform that allows Customers to transact at any of our 17 branches and on our digital platform.