KCB Registers 18 Percent Growth in Half-Year Results

KCB group has posted an 18 percent growth and a before-tax profit of 12.1 billion shillings, a marginal increase compared to 10.3 billion shillings registered the previous year.

Amidst the bank’s reinforced solid growth prospects, the operations were resilient in an unfavorable working environment, which was further constrained by credit bottleneck in key markets, says Joshua Oigara, the Chief Executive.

“KCB Group is up to date on delivering its 2018 projections in the six strategic initiatives. Business is bound to get robust,” Oigara added on Thursday during the release of the results.

The bank’s total income for the six months increased 3 percent to 35.6 billion shillings from 34.6 billion shillings. This increase is attributed to a surge in both interest and non-interest income.

Due to improved loan loss provision and staff costs, KCB group’s operating expenses dropped 7 percent from 19.9 billion shillings to 18.5 billion shillings.

The transaction activity is the lender’s branches stood at 13 percent of the total volumes with 87 percent representing the non-branch transactions.

During the period under review, KCB’s Statement of Financial Position posted a 6 percent growth to 667.7 billion shillings from 630.6 billion shillings the previous year. The growth was as a result of increased deposits and gross customer loans in a controlled interest rate environment.

The deposits stood at 525 billion shillings from 482.8 billion shillings, which placed the lender at a favorable liquidity position. On the other hand, the loan book stretched 4 percent to stand at 421.5 billion shillings. 

KCB group is likely to achieve a substantial growth in an improved operating environment. The interest rate cap and the political upheavals stagnated the bank’s full-year net profits in 2017. However, it defied the challenges to post an operating income of 71.4 billion shillings for the period under review compared to 69.5 billion shillings in 2016. The net interest income increased 3 percent from 47 billion shillings to 48.4 billion shillings.