Banks enjoy record profits of Sh111bn in four months

Kenya's commercial banks posted a cumulative pre-tax profit of Sh111.8 billion in the four months to April, up 13.8% from a year earlier. The growth was driven by a 9.37% expansion in their loan book to Sh4.5 trillion. Banks cut deposit rates faster than lending rates, widening their margins. Non-performing loans fell to 15.4% of total loans from 17.5% a year earlier, and provisions for bad debts were reduced, further boosting profits.