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Consolidated Bank rebounds to profitability
Customer Deposits grew by 8% year on year to stand at Ksh.12 billion, enabling the Bank to accelerate growth and maintain adequate liquidity ratio of over 30% as at the end of June 2025 against the statutory minimum of 20%.
By Rodney LUBOGA
Consolidated Bank has posted a profit of Ksh.21.6 million for the half year to 30th June 2025 bouncing back to profitability after years of losses.
This marked an improvement from a loss of Ksh.76.8 million recorded over the same period last year and is part of the Bank’s turnaround and growth strategy which aims to diversify revenue sources and growth of the Balance Sheet.
The positive turnaround is also reflected in the Bank’s Ksh.12 million total comprehensive income for period against a loss of Ksh.84.9 million over a similar period last year.
Despite the challenging economic environment, the Group reported an impressive 19% growth in total assets to close at Kshs. 18.4 billion from the Ksh.15.5 billion recorded a similar period the previous year.
Similarly, the Bank witnessed robust net interest income growth of 21% to Ksh.551 million from ksh.455 million while non-funded income declined marginally from Ksh. 315 million to Ksh.282 million.
The Bank’s growth in total operating income outpaced the growth in operating expenses.
The Group’s total operating expenses closed at Ksh.812 million which represented a 4% decline from the Ksh.848 million recorded the previous year, coming from implementation of strategic initiatives, cost containment measures and improved operational efficiencies.
Provisions for bad debts increased by 3% from Ksh. 157 million in first half of the year compared to Ksh. 162 million recorded prior-half year.
Commenting on the results, Consolidated Bank Chief Executive Officer, Sam Muturi, said:
“The Bank’s growth outlook is positive and is gearing up for accelerated growth through improved digital service delivery channels as well as innovative products to serve our customers especially in the SME and MSME sectors.
“We will continue building on the strategic initiatives undertaken over the last three years to transform the position of the Bank, and we are pleased to note that they have already started bearing fruits.”