African banks have incurred huge losses amid the outbreak of Covid-19 pandemic due to a surge in bad loans provisions. In the first nine months of the year, Kenya’s Absa bank has recorded a profit dip of $19 million from $56 million last year. The bank has now joined the ranks of Equity and KCB.
It is reported that KCB’s net profit slumped 43 percent to $109 million in the first nine months compared to $192 million in the period last year. Equity, on the other hand, has recorded a 14 percent slump in profit down to $148 million from 173 million in the same period a year ago.
It is believed that the slump in all the banks’ performance is mainly due to a surge in bad loans provisions and advances in the wake of increased risk of credit default associated with the Covid-19 pandemic.
Absa Bank Kenya managing director Jeremy Awori, told the media, “The evolving impact of the pandemic has required us to revisit our strategic priorities. Our focus in the past few months has been to help our customers manage through the pandemic through various interventions such as loan moratoriums and restructures, fee waivers for digital transaction, capacity building for SMEs and other Force for Good initiatives.”
That said, Absa Bank has extended its support toward the people to assist them in coping with the pandemic’s effects through services such as financial solutions, increased lending capabilities and capacity building.