The first quarter of a year that is seeing Kenya Commercial Bank (KCB) balloon its asset base through mergers and acquisitions seems to be going swimmingly well.
Posting Q1 profits of Ksh5.77 billion, KCB has seen its year on year earnings gain 11.3%.
During the same review period in 2018, the lender had posted Ksh5.18 billion.
KCB attributed its performance to stronger non-funded income, loan book growth and reduction in interest expense.”
“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” said KCB chief executive Joshua Oigara.
According to numbers provided by the lender, 91% of total transactions were performed outside the branch. “This comprised of 56% on mobile, 27% on agency, internet and POS [point of sale] and 8% on the ATM.”
Total income for the KCB Group also grew by 11% to Ksh18.8 billion.
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The lender also stated that its total assets are now at Ksh725 billion, inching 78% higher from the Ksh714 billion that the firm had posted during its 2018 full year financial results.
Going forward into the year, KCB said the future of Kenya’s economic environment was expected to be depressed.
“We expect some inflationary headwinds in the economy as a result of lower rainfall in Kenya and increasing fuel prices.” said Mr Oigara.
KCB is involved i various merger deals, including a Ksh10 payout for Imperial Bank and a takeover of National Bank of Kenya (NBK).
The lender is in the process of transferring part of the assets and liabilities of Imperial Bank, KCB said.
“Both transactions are targeted for completion in the third quarter of 2019,” the Group said.
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