KCB Group reported its Full Year 2016 Results posting a 10 percent rise in Profit before tax to 29.09 billion shillings while net profit increased by 1 percent to 19.7 billion Shillings from the previous years’ 9.6 billion shillings.
The Net interest income grew to 20 percent to 47 billion shillings from Sh39.3 billion shillings despite the capping of interest rates last year the that was introduced in the third quarter of 2016 while Forex income also increased by 35 percent to 5.5 billion shillings.
According to the Bank, Customer deposits increased by 6 percent from 424.4 billion shillings to 448.2 billion shillings while net loans and advances to customers were 11 percent up to 385.7 billion shillings. Total Assets improved by 7 percent from 558 billion shillings to 595.2 billion shillings.
The Groups’ Chief Executive Officer Joshua Oigara noted that almost 90 percent the Banks’ loans are usually processed on Mobile, with 53 percent of customer interactions being on mobile too.
The Bank also surprised its shareholders by announcing a 9.1-billion-shilling dividend payout for the year that ended December 2016, which happens to be the largest ever by a financial services firm in Kenya.
Shareholders will receive a dividend of 3 shillings per share, which will be a 50 percent increase from the previous year’s 2 shillings per share. The amount represents a 52 percent increase in absolute terms because the new dividend is being paid on a larger volume of shares following the issuance of 40.8 million new shares last year.
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