Victoria Commercial bank posted a drop in profits by 17 percent for the year ended December 2016.
The loss incurred by the bank was attributed to the lack of a one-off gain booked from the disposal of assets in the year 2015.
The bank booked one-off income of 242 million Kenya shillings in 2015 after disposing off its stake in Brook House School to the UK based equity fund Educas.
Victoria Commercial Bank which is a small lender posted 592 million Kenya shillings in net profit for the year ended December 2016 compared to 713 million Kenya shillings posted a year earlier.
Competition within privately-owned banks is just as stiff as that in the bigger banks
Central Bank’s Monetary Policy Committee this month held the policy interest rate at 8.5 per cent signaling it was seeking a further reduction in inflation even as businesses remain optimistic of the country’s economic growth prospects
The regulator has also been pressing lenders to reward their depositors more by raising the returns payable on savings.
Victoria Commercial Bank expects to maintain or even lower its interest rates, in line with the positive economic forecasts.
The bank has continued its decade-long zero loan default record. The audited financials shows that Victoria Commercial Bank had no non-performing loans
Written by Amina Martha.