Consolidated Bank in expanded half year loss

State owned Consolidated Bank has fallen further into the red in its expanded Ksh.157 million half year loss.

The extended loss for the lender puts its further down the road in sticking to the Central Bank of Kenya (CBK) capital requirements.

For instance, the bank’s core capital has fallen to Ksh.230.2 million in the six months from Ksh.631.4 million against the recommended threshold of Ksh.1 million.

Other capital adequacy metrics that lie in breach include the core capital to total deposits liabilities ratio and core capital to total risk weighted assets.

Consolidated Bank costs at the half year stage grew ahead of income with non-interest related expenses reaching Ksh.846.7 million against revenues of Ksh.698.4 million.

The lender has now posted Ksh.3.5 billion in accumulated losses according to its latest financial disclosures published on Thursday.

The National Treasury holds a majority 93.4 per cent stake in the bank having converted Ksh.1.6 billion debt in the lender into shares.

Consolidated Bank has been reliant on government support including disbursements from the lender of last resort in the CBK to stay afloat.

Previously, the bank has outlined its quest for a strategic investor to pull it back from the brink.

The new investor who would be expected to take up convertible preferential shares would become Consolidated majority shareholder.

In January, the lender kicked off the search for a new Chief Executive Officer and sought to draft a consultant in the recruitment process.

Consolidated Bank next CEO will be tasked with bringing the bank up to sound operational metrics.