NAIROBI, Kenya
KCB today announced a pre-tax profit of 10.1 billion for the first half of 2013, 19% growth over the same period last, in what has set the stage for a recording breaking full-year profitability for the bank.
KCB CEO Joshua Oigara said the impressive results came from increased business and improved operational efficiencies.“We are beginning to benefit from our investment in cost transformation initiatives that ensure high operational efficiency,” he told an investor briefing. “We believe we can bring this ratio down to below 54%by by year-end as we streamline further our operations.”
The group international business registered a strong a performance of 72% growth from Ksh0.6 billion in June 2012 to Ksh 1.1 billion in June 2013, contributing to 11% of the group’s profit. The CEO said the bank plans to focus on business consolidation, operational efficiency, customer service, talent maximisation and technology and innovation to enhance performance and competitiveness in the business in the next six months.
Mr Oigara, who took over from long-serving CEO Martin Oduor-Otieno, said net interest income for the sixth months increased by 12% to Ksh16.1 Billion up from Ksh14.3 billion during the same period last year. This reflects the marginal increase in net loans and advances by 16% from Ksh202 billion in 2012 to Ksh214 billion in the period under review.
The group fees and commission income further went up by 9% from Ksh 4.6 billion to Ksh 5.0 billion. Total operating expenses rose by 6% to Ksh 12.7 billion owing to one-off restructuring costs. The price of KCB shares at the Nairobi Security Exchange (NSE) has moved up from the average of Ksh29 in 2012 to the current daily price average of Ksh44.
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