Citibank Kenya, a lender whose niche is in the corporate segment, has recorded a modest increase in its net earnings, for the nine months ending September 2020, to KSh 2.5 Billion. This is compared to KSh 2.4 Billion posted in Q3, 2019 period.
The lender, who has been in the Kenyan credit space since 1974 with two branches in Nairobi and Mombasa, targets corporate and institutional customers. It serves as the regional hub for the Citi East Africa-which has a presence in Kenya, Uganda, Tanzania, and Zambia.
Citibank Kenya is on the list of banks that have defied the ravages of COVID-19, which has seen rising loan defaults and huge moratoriums offered to distressed borrowers.
Fees and Commissions earned by Citibank NA Kenya, from loans given to customers fell significantly, as customers and businesses struggled to service their loans. This revenue stream fell drastically from KSh 210 Million in Q3, 2019 to KSh 19.7 Million in Q3, 2020.
Cash held by the lender, in the form of both local and foreign currency, also took a hit-declining to KSh 790.8 Million in Q3, 2020 from KSh 1.1 Billion over a similar period last year.
Citibank NA Kenya balance sheet size grew from KSh 93.5 Billion to KSh 101.8 Billion, boosted by loans given to customers which edged up from KSh 26.1 Billion to KSh 36.9 Billion.
The lender’s pre-tax profit declined from KSh 4.33 Billion to KSh 4.25 Billion.
Customer deposits were up from KSh 59.4 Billion to KSh 73.2 Billion while provisions for loan loss went up from KSh 404.9 Million to KSh 738.1 Million.
Citibank NA Kenya’s capital strength was at KSh 19 billion at the end of Q3, 2020, against a minimum statutory requirement of KSh 1 billion.