In the year ended 31 December 2020, the Bank recorded a net loss of KES 393 million compared to a net loss of KES 2040 million as at 31 December 2019, an improvement of (81%). The improvement is primarily due to;

• Reduced cost of risk in 2020, in 2019 the bank took additional provisions of Kes 2.7 billion as compared to Kes 688 million in 2020.
  The Bank operating environment has been particularly challenging in 2020 due to thin capital margins in the first 3 quarters of 2020 and Covid-19 thus: The Bank has had to manage the financial year with the following in mind;
• Increased credit risk to private sector in light of Covid-19.
• Need to grow non-risk assets (government securities) as a result of increased credit risk to the private sector.
• Need to recover bad debts so as to improve on profitability.

The balance sheet size increased by 2% in 2020 reflecting increased amounts due to BOA : Mer Rouge and Madagascar. The Bank acts as a transit for transactions that involve BOA Subsidiaries namely Mer Rouge, Madagascar, Niger, Togo and Mali.

Loans and advances reduced to 33% of total assets down from 36% in December 2019. Government securities improved to 19% of total assets up from 17% 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 decreased by 16% in 2020 as the bank sought to shed off expensive deposits in light of diminishing investment opportunities. This has seen the Bank scale down on term deposits that are normally expensive.