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NAIROBI, Nov 14 (Reuters) - Standard Chartered Kenya’s pretax profit dropped by 38 percent to 6.87 billion shillings ($66.3 million) in the first nine months of this year, it said on Tuesday.
The lender blamed the fall on a government cap on commercial lending rates introduced in September last year and an economic slowdown after the Supreme Court nullified an Aug. 8 presidential election and ordered a re-run.
“We have further seen an increase in our non-performing loan book,” CEO Lamin Manjang said in a statement.
The rate cap, which limited commercial lending rates at 4 percentage points above the central bank rate and set a minimum deposit rate of 70 percent of the benchmark, has squeezed margins across the industry.
Standard Chartered Kenya said its net interest income declined by 8 percent from a year earlier. ($1 = 103.6000 Kenyan shillings) (Reporting by Duncan Miriri; Editing by David Goodman)