Jamii Bora Bank has reported a net loss of Sh. 28.4 million for the nine months to September compared to a net profit of Sh.61.97 million in a similar period last year.
The loss was attributed to high operating expenses and cost of funds.
Jamii Bora’s drop into loss-making territory was occasioned by an increase in total interest expenses which grew by Sh. 365.5 million to close quarter three at Sh. 1.09 billion.
Interest expenses on customers’ funds increased by 45.8 per cent to Sh. 891.6 million despite the fact that these deposits reduced by Sh. 2.1 billion to Sh. 9.2 billion in the period.
The bank’s increased interest expenses ate into the bank’s total interest income which increased by Sh. 496 million to Sh. 1.7 billion.
Interest income from loans alone went up by 52.9 per cent to Sh. 1.4 billion, despite the bank’s loan book contracting by 2.5 per cent to Sh. 9.84 billion.
