KCB Bank Group profits for 2014 up by 18.2%



Today there was a briefing by KCB Group on their 2014 financial results. If you are a shareholder you will have something to smile about at the AGM. Some key figures below.

  • Profit Before Tax: Up 18.2% from KShs 20.1billion to KShs 23.8billion
  • Total Assets: Up 25.5% from KShs 390.9billion to KShs 490.3billion
  • Net Loans and Advances: Up 24.6% from KShs 227.7billion to KShs 283.7billion
  • Customer deposits: Up 23.4% from KShs 305.7billion to KShs 377.3billion
  • Shareholder Funds: Up 19.4% from KShs 63.4billion to KShs 74.9billion
  • Total Capital Ratio: At 21% compared with Regulatory Minimum of 14.5%
  • Long term debt funding: Up 65.0% from KShs 7.7billion to KShs 12.7billion
  • KCB Foundation 1% contribution rising from KShs 201mn to KShs 238mn

KBC Bank Group has posted an 18% increase in 2014 pre-tax profit financials. Great profits have been realized as customer numbers have grown from 2.5 million to 4.1 million in 2014 and double digit growth of KCB’s balance sheet. KCB’s net loans have increased by 24.5% to stand at 284 billion up from 228 billion in 2013.

The factors that have driven positive growth figures include enhancing financial inclusion to 10 million customers, building strategic partnerships with both businesses and government, increased micro lending to 3 million loans, increase in SME contributions to 20% of the loan book, affordable mortgage proposition and integrated product and services offerings like bancassurance, investment banking and brokerage services.

The partnership with Safaricom has enabled KCB to triple mobile transactions and they have also invested in their agency footprint to enhance digital payments. The idea is to increase reliability and capacity to over 25 million customers and also draw in new customers.

KCB is also working on putting together and funding infrastructure projects and renewable energy projects. They are taking opportunities to expand the economy and also expand the bank’s profit base.

Their loan portfolio includes personal loans at 36% followed by real estate at 16%. Agriculture, construction, manufacturing, trade and transport are also areas with significant percentages.

Regionally Kenya still provides the biggest chunk of business at 81.25% of business up from 80% in 2013. But Tanzania is the fastest growing business moving from 3.0% in 2013 to 3.5% in 2014. South Sudan has understandably gone down from 10.9% in 2013 to 8.6% in 2014. Uganda has also improved slightly going from 3% to 3.2%. Business in Rwanda and Burundi seems to have gone down in percentage. There are plans to expand the business to Eastern Congo, Ethiopia and Somalia.

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