KCB Group posted a pretax profit of Ksh14.75 billion for the first half ending June 2017, helped by a strong performance of its core retail and corporate business, non- interest income and lower interest expense.
The retail and corporate loan book growth momentum that started late last year carried into the first half of 2017. This coupled with effective management of interest expense has cushioned the expected impact of interest rate capping in Kenya.
Following these results, the Board of Directors considered and approved payment of an interim dividend of Ksh1 per share to be paid in the next 90 days.
KCB Group CEO and MD Joshua Oigara said the business, however, remained resilient, showing strong momentum for growth into the second half of the year, adding that the management has put up strategies to boost earnings largely through digital channels.
H1 2017 Results Key Highlights
- PBT stood at KShs. 14.75B.
- Net Interest Income was up 3% to KShs. 23.15B from KShs. 22.50B
- Forex Income increased 3% to KShs. 2.65B from KShs. 2.57B
- Fees & Commissions went up 14% to KShs. 7.21B from 6.30B
- Total Assets improved by 3% from KShs. 610.2B to KShs. 630.6B
- Net Loans and Advances up 17% from KShs. 348.7B to KShs. 407.0B
- Customer deposits increased 1% from KShs. 476.5B to KShs.482.85B
- Shareholder funds grew 2% from KShs. 96.5B to KShs. 98.3B
- Long term debt funding was down 6% from KShs. 17.7B to KShs. 16.7B
“The business fundamentals remain strong and we are optimistic of a stronger performance in the remaining part of the year. We are continually pursuing a sustainable business model and excellence in customer experience to enable us play a more catalytic role in East Africa’s economic journey,” said Mr Oigara.
He noted that the banking sector continues to undergo numerous challenges and KCB would keep up irs innovation and customer centric orientation.
According to the financials released on Wednesday, forex income increased 3% to Ksh2.64B from Ksh2.57B a similar period last year while fees and commissions went up 14% to Ksh7.21B from Ksh6.30B, buttressing the bank’s resolve to deliver growth aided by non- interest income.
Total loans and advances increased by 17% to Ksh407 billion. This drove the growth in totsl assets to Ksh630.6 billion. The growth in the balance sheet further strengthens the bank’s capability to run a stronger regional business across East Africa.
On the funding part of the business, customer deposits increased to Ksh482.8 billion representing a growth of 1%. This marginal growth is attributed to the continued hyperinflation in South Sudan.
- NEXT READ: KBC in crisis as workers go on strike
Leave a comment