The Kenya Commercial Bank (KCB Group) has registered 24 billion shillings in profits for the financial year ended in December 2018.
The 21.8 percent jump in net profits has been attributed to low loan loss provisions during the year as well as higher interest income. In 2017, the lender realized 19.7 billion shillings in full-year profits.
KCB Group’s interest income grew by 4 percent to Sh66.3 billion from Sh63.7 billion posted at the end of the previous financial year.
Net interest income was up 0.9 percent on a year-to-year basis to 48.8 billion shillings behind the expectations of some market analysts such as Genghis Capital who had projected it to be at 50.3 billion shillings.
Non-interest revenue, down marginally by 0.1 percent on a year-to-date basis to 23.0 billion shillings while the operating expenses before provisions went down by 3.7 percent to 35 billion shillings.
Loss provisions charges for KCB went down 50.2 percent to 2.9 billion shillings. The lender witnessed a PAT growth of 22.0 percent 24.0 billion shillings while the non-performing loans (NPL ratio) down by 150bps y/y to 6.9 percent.
KCB also witnessed a loan book growth of 7.9 percent to 455.9 billion shillings. The balance sheet growth stood at 10.5 percent to 714.3 billion shillings.
The final dividend has gone up 17 percent 3.50 shillings.
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