Listed commercial banks in Kenya defied the effects of COVID-19 pandemic to post growth in deposit, loans and interest income in the first half of the year.
The banks between January and June recorded an 18.5 percent growth in deposits, up from the 8.6 percent growth in H1 2019, an analysis of the sector’s performance released by the Kenya Bankers Association (KBA) on Monday showed.
The rise in deposit saw interest expenses grow faster by 10 percent compared to 5.3 percent in a similar period in 2019.
Average loan growth came in at 16.1 percent, faster than the 9.8 percent recorded in H1 2019.
Interest income rose by 10.4 percent, compared to a growth of 3.7 percent recorded in H1 2019.
The faster growth in interest income was attributed to the 16.1 percent growth in loans and increased allocation to government securities.
COVID-19 was first reported in Kenya in mid-March but the number of cases is declining.
“With the economy opened up, banks will record better performance in the second half as manufacturing, floriculture, mining and tourism sectors flourish,” said Ernest Manuyo, a lecturer at Pioneer Institute in Nairobi.