Credit Bank narrows quarterly losses as liquidity, customer deposits rise

Credit Bank has reported improved liquidity levels and a narrower pre-tax loss in the first quarter of 2026 as the lender moves to strengthen its capital position amid a challenging economic environment.

The bank posted a pre-tax loss of Ksh.26.6 million in the three months to March 2026, compared to Ksh.68 million recorded during a similar period last year.

Credit Bank said it had taken measures to improve resilience, strengthen liquidity buffers and address asset quality concerns as it prepares for tougher capital requirements in the banking sector.

The lender’s liquidity ratio rose to 22.74 per cent from 15.5 per cent recorded during the same period last year, while paid-up capital stood at Ksh.1.48 billion.

The improvement comes as banks prepare to comply with the Business Laws (Amendment) Act, which raised the minimum core capital requirement from Ksh.1 billion to Ksh.3 billion by the end of 2025 and eventually Ksh.10 billion by 2029.

Credit Bank said it was leveraging shareholder backing in a plan to raise an additional Ksh.4.5 billion through private placements.

The lender attributed the cautious performance to a difficult macro-economic environment marked by geopolitical tensions and instability in the Middle East, which it said had affected global energy prices, food prices and shipping.

Credit Bank Chief Executive Officer Betty Korir said the bank had adopted a cautious lending approach while focusing on innovative products and preserving asset quality.

“For the three months, and in line with our purpose of transforming the financial industry landscape through innovative and relevant financial solutions, we have continued to empower customers through a range of innovative products while making a strategic move to balance asset growth with caution in order to retain high asset quality amidst tough macro-economic times,” said Korir.

Loan growth slowed to Ksh.15.8 billion as the lender sought to guard against rising defaults in the banking sector.

According to the Central Bank of Kenya, the ratio of gross non-performing loans to gross loans in the industry stood at 15.6 per cent in March 2026 compared to 15.4 per cent in December 2025.

The bank said it had increased investments in government securities and high-interest earning deposits to support non-interest income while strengthening loan recovery efforts and restructuring struggling facilities.

“Credit Bank has continued to be open and strategic on how we see the future evolve to achieve our client goals and create opportunities even as we protect our client wealth and position for market cycles,” Korir said.

Customer deposits rose from Ksh.19.3 billion last year to Ksh.22.9 billion by March 2026, while the bank’s total assets increased to Ksh.28.3 billion from Ksh.26.3 billion recorded in a similar period last year.

The lender said it remained optimistic about future growth opportunities as businesses continue adapting to multiple economic challenges.