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Development Bank repays Sh600m advance to CBK
The Central Bank of Kenya headquarters in Nairobi.
What you need to know:
- The debt stems from support by the CBK to keep the lender’s operations going.
- Development Bank of Kenya attributes it net profit growth on debt recoveries over last year.
State-owned Development Bank of Kenya (DBK) has repaid a Sh600 million debt owed to the Central Bank of Kenya even as its net profit for 2021 jumped 146.78 percent to Sh53.8 million.
The debt stems from support by the CBK to keep the lender’s operations going.
DBK attributes it net profit growth on debt recoveries over last year.
“The increase was mainly due to loan loss provisions of Sh92.5 million write back recorded in 2021 on loan recoveries,” the bank said.
The lender’s total assets grew marginally to Sh17.3 billion from Sh17.2 the previous year while it loans portfolio jumped to Sh8.8 billion last year, up from Sh8.6 billion the previous year.
“At the end of December 2021, the bank was fully compliant with the minimum benchmarks by the regulator,” the lender said.
During the year, DBK’s customer deposits expanded by Sh1.1 billion while net assets held steady at Sh17.3 billion.
The bank is among those marked for privatisation even though the plans remain on paper.
