Equity, the country’s second-largest bank by assets, said first-quarter net profit fell to Sh5.2 billion, compared to Sh6.1 billion in a similar period last year due to a rise in bad loans. The bank linked the drop to the effects of Covid-19, which has reduced business activity and shed jobs, leading to a spike in loan defaults across Kenya’s banking industry. On the other hand, StanChart reported a net profit of Sh2 billion in the review period, compared to Sh2.4 billion a year earlier on reduced income and increased operating expenses. The drop in profit was driven by a decrease in both interest and non-interest income. INTEREST DROPPEDTotal interest income dropped from Sh6.88 billion last year to Sh6.1 billion.

Source: Daily Nation May 29, 2020 03:33 UTC