Loan book growth

The top tier lender recorded a 15 per cent or Sh32 billion growth in its loan book to Sh245.9 billion during the quarter.

Its non-performing loan portfolio, however, rose at a faster pace than that of the loan book, rising by 30.9 per cent to Sh11.23 billion.

Fellow top-tier lender KCB, #ticker:KCB which released its results last week, also blamed the rate cap and operating environment in South Sudan for its lower quarter one profit.

KCB’s profit fell by 1.9 per cent to Sh4.54 billion during the period.

The lender earlier this month announced it would temporarily close some of its South Sudan branches, terming them unsustainable.

Inflation in South Sudan hit 830 per cent in late 2016, while the South Sudanese pound is exchanging at about 108 units to the US dollar compared to 2.95 units at the beginning of last year.

Other lenders with operations in South Sudan are Equity Bank and Stanbic. Equity will release results next week.

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