The Kenya Commercial Bank (KCB) reported a 22 percent drop in its net profit to Ksh.19.6 billion for the year ended December 2020.
The loss was attributed to higher provisions for loan losses and subdued economic activity owing to the coronavirus pandemic that hit business performance.
During the period under review, the lender’s loan loss provision more than tripped to Ksh. 27.5 billion.
The bank restructured Ksh.7.5 billion worth of loans relating to small and medium enterprises.
The total restructured loans account for about 20 percent of the bank’s loan portfolio, a trend KCB CEO Joshua Oigara anticipates to continue in the next two years as businesses take recovery steps.
Oigara said the business will make a rebound in 2021 despite the harsh macroeconomic environment.