In the year ended 31 December 2019, the Bank recorded a net loss of KES 2 billion compared to a net profit of KES 173 million as at 31 December 2018, (1,279%) decrease. The loss is primarily due to; additional provisions booked in the year, a net of Kes 2.4 billion was booked in 2019.

The Bank operating environment has been particularly challenging in 2019 due to thin capital margins, thus:

• The Bank has had to manage the financial year with the following in mind;
• Need to reduce loans and advances to keep the ratios within CBK threshold.
• Need to grow non-risk assets (government securities) so as to increase interest income with nil impact on capital.
• Need to recover bad debts so as to improve on profitability. The balance sheet size reduced by 9% in 2019 reflecting efforts made on short term strategies above which were largely geared towards balance sheet optimization. Loans and advances reduced to 36% of total assets down from 43% in December 2018. Government securities improved to 17% of total assets up from 13% due to the need to grow non-risk assets (government securities) so as to increase interest income with nil impact on capital.

On the liability side, customer deposits have increased by 11% in 2019 attributed to receipts by China Road.