KCB Group profits Spike by 11.3% to Ksh 5.8 Billion in Q1 2019

By Soko Directory Team / May 23, 2019




By Sharon Chweya

KCB Group’s profit for the first quarter of 2019 rose to 5.8 billion shillings from 5.2 billion shillings in Q4 of 2018 attributed to their loan books growth, stronger non-funded income channels and reduction in interest expenses.

The first quarter ended on 31st March, went well for KCB Group considering their potential growth in asset base through mergers and acquisition of Imperial Bank and National Bank of Kenya to be completed by the third quarter.

The Group has an asset base of 725 billion shillings, the largest branch network in the region with 258 branches, 946 ATMs, 16,642 POS/Merchants and agents offering banking services on a 24/7 basis in East Africa.

In Q1, 91 percent of the total transactions in Q1 were performed outside the branch, that is, 56 percent on mobile, 27 percent on agents, internet, and point of sale and 8 percent on ATM.

Revenues from the non-bank channels increased by 137 percent to 3.2 billion shillings driven by the disbursement of mobile loans which subsequently grew by 270 percent from 9.2 billion shillings to 33.8 billion shillings, the same period last year.

The loans and advances to customers rose by 10.9 percent from 418.62 billion shillings in 2018 to 464.26 billion shillings. The increase in loans and advances led to an increase in the group’s total income by 11 percent to 18.8 billion shillings and an 11.2 percent increase in the bank’s net interest income to 12.71 billion shillings. The asset base increased from 714 billion in 2018 to 725 billion, a 78 percent increase.

Customer’s deposit grew from 496.37 billion shillings in 2018 to 555.2 billion shillings, an 11.24 percent increase. The gross non-performing loans declined by 12.75 percent to 38.82 billion shillings, while the loss provisions nearly doubled by 93.76 percent to 1.16 billion shillings.

“The performance is as a result of a sustained strategy that is anchored on a simplified customer journey and products that provide solutions to our customers,” KCB CEO Joshua Oigara said on Wednesday. “We expect some inflationary headwinds in the economy as a result of lower rainfall in Kenya and increased fuel prices. The Group has the capacity to navigate through this and are therefore optimistic we will maintain our positive growth trajectory,” Oigara added.



About Soko Directory Team

Soko Directory is a Financial and Markets digital portal that tracks brands, listed firms on the NSE, SMEs and trend setters in the markets eco-system.Find us on Facebook: facebook.com/SokoDirectory and on Twitter: twitter.com/SokoDirectory

View other posts by Soko Directory Team


More Articles From This Author








Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE

ARCHIVES

2019
  • January 2019 (256)
  • February 2019 (216)
  • March 2019 (287)
  • April 2019 (254)
  • May 2019 (273)
  • June 2019 (138)
  • 2018
  • January 2018 (291)
  • February 2018 (219)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (257)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (187)
  • 2017
  • January 2017 (183)
  • February 2017 (195)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (206)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (246)
  • June 2016 (183)
  • July 2016 (271)
  • August 2016 (249)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (109)
  • May 2015 (117)
  • June 2015 (121)
  • July 2015 (150)
  • August 2015 (157)
  • September 2015 (189)
  • October 2015 (170)
  • November 2015 (174)
  • December 2015 (208)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950