Borrowers have defaulted a record 90.65 percent of Spire Bank loan book, casting doubt on the survival of the loss-making lender that is also in breach of all regulatory ratios.

The lender, which is owned by businessman Naushad Merali and Mwalimu National Sacco, discloses in latest financial results that gross non-performing loans (NPLS) hit Sh2.69 billion last June against the Sh2.96 billion that has been lent out.

Spire’s NPLs ratio, which measures the proportion of credit for which principal or interest has not been paid for 90 days, is nearly seven times that of the entire banking industry (13.1 percent).

The deteriorating quality of loan book came in the period the six-month earnings moved from a net profit of Sh81.48 million to a net loss of Sh556.1 million.

The six-month loss is more than twice the Sh254.7 net loss it booked in the full year of trading in 2019.