Spire Bank Loans: Borrowers at troubled Spire Bank are not paying back loans. The borrowers have defaulted a record 90.65 percent of all loans given out by the bank. Gross non-performing loans (NPLS) hit Sh. 2.69 billion last June against the Sh. 2.96 billion that has been lent out. This means that the bank’s NPLs ration is now nearly seven times that of the entire banking industry. This has further aggravated the market position of the bank that has failed to meet CBK’s market regulations. The bank has also been on a loss making streak.
This startling statistic was revealed in the latest financial results, which show that the bank has fallen back to loss making territory. In the six months to June Spire spiraled from a net profit of Sh. 81.48 million that was posted the same period in the previous year to a net loss of Sh. 556.1 million.
It also indicates that the bank will post heavy full year losses, given that in the full year 2019 it posted a net loss of Sh. 254.7. The bank has been looking for a strategic investor to inject the much needed capital after six years of losses wiped its core capital and shareholder funds even as customer deposits dropped. Spire Bank is currently owned by businessman Naushad Merali and Mwalimu National Sacco. Spire Bank Loans.