BANKING

Mayfair Bank losses narrow in Q1 performance

Better performance

In Summary

•The bank attributed this growth to an increase in customer deposits to Sh5.46 billion as of March 2019

A woman takes Nigerian Naira from a bank's automated teller machine (ATM) in Ikeja district in the commercial capital Lagos November 12, 2014.
A woman takes Nigerian Naira from a bank's automated teller machine (ATM) in Ikeja district in the commercial capital Lagos November 12, 2014.
Image: REUTERS

tier three lender Mayfair bank has posted steady growth in the first quarter of 2019 with reduced losses recorded compared to the previous year.

The lender recorded a loss of Sh76.09 million for the first quarter in 2019, a decrease from Sh89.12 million recorded in 2018.

The bank attributed the growth to an increase in customer deposits to Sh5.46 billion as of March 2019 compared to Sh2.59 billion over the same period in 2018.

“This underscores growing depositor confidence in the sector's bank,” the bank said in a statement.

The bank is still young in the country, having commenced operations in August 2017.

The bank recorded a 69 per cent increase in total asset base to Sh6.69billion the first three months of 2019 from Sh3.95 billion over the same period in 2018 attributing this to an expansion of its lending book.

On quarter-to-quarter performance, the advances portfolio grew by eight per cent to Sh 3.43 billion in the first quarter of 2019 from  Sh3.18 billion on December 31, 2018, with asset quality remaining high and un-impaired by bad debts and bad debt provisions.

Liquidity remained strong at 47.2 per cent above the statutory limit of 20 per cent and reflecting bank’s strong ability to meet maturing short-term obligations.

This performance underscores the lender’s immense potential to steadily gain a strong foothold in the ranks of tier three banks within the near future.

The bank, which targets large and mid-sized corporates and high net-worth individuals’ clientele, has five branches currently in the country.