Mayfair CIB cuts its nine month losses to Ksh208 million

Mayfair CIB cuts its nine month losses to Ksh208 million

Mayfair CIB Bank has cut its nine months losses to Ksh.208.4 million from a Ksh.250.2 million loss last year.

The 16.7 per cent contraction in loss making is largely attributable to the lender’s higher operating income which topped Ksh.299.8 million from Ksh.188.1 million last year.

The growth in operating income has however failed to hold off increased costs driven primarily by higher loan loss provisions in the period.

Mayfair’s cover for loan defaults grew ahead of staff and depreciations costs to Ksh.17.4 million from Ksh.6.6 million last year while total operating costs stood at Ksh.941,9 million in the nine months.

The sale of the lender’s majority stake (51 per cent) by Egypt’s Commercial International Bank (CIB) proved pivotal in the bank’s preservation of capital amidst volatility caused by the COVID-19 pandemic.

In spite of a slight hit to the bank’s capital, CIB’s recent injection of Ksh.3.7 billion kept the lender’s core capital above the Ksh.1 billion Central Bank of Kenya (CBK) threshold at 4.2 billion.

At the same time, the bank’s liquidity kept high above the regulator threshold of 20 per cent at 89.9 per cent from 45 per cent last year.

Mayfair Bank assets remained resilient at Ksh.12.3 billion from Ksh.8.2 billion but lower than Ksh.13.3 billion in June.