KCB pre-tax profits for quarter 1 of 2015 up by 12%

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Key figures

Total assets have gone up by 24% from Ksh. 411.1 billion to Ksh. 510.3 Billion.
Loans and Advances are up 27% from Ksh. 233.8 billion to Ksh 297Billion
Customer deposits have gone up by 27% from Ksh. 313.5 Billion to Ksh. 397.1Billion
Profit before Tax in the first quarter of 2015 up 12% from Ksh. 5.6 Billion to 6.2Billion.
Net Interest Income: Up 11% from KShs 8.3Billion to KShs 9.3Billion
Fees and commissions: Up 19% from KShs 2.7Billion to KShs 3.2Billion

If you are a shareholder of KCB Bank Group you will be laughing all the way to the bank. KCB Bank just released its first quarter results for 2015 and the profits have risen by 12% before tax. They have made Ksh. 6.2 billion which is attributed to higher interest incomes, fees and commissions arising from new business lines.

KCB CEO, Mr. Joshua Oigara said that the growth in profitability was a result of a sustained push to manage costs in Kenya and the international businesses as well as growing non-funded income.
KCB has been focusing on driving up non funded income. “Fees and commissions grew by 19% as a result of increased transaction volumes and new products which we have rolled out to meet changing customer needs,” said Mr Oigara. He said that the investments they have created through partnerships are bearing fruits especially the partnership with Safaricom which has been a game changer in the financial services sector. KCB is focused on financial inclusiveness as part of its strategy.

KCB has increased its investments in new business lines. 2 weeks ago KCB formally launched KCB Insurance Agency business which has been rolled out to 98 branches so far and will be rolled out to the rest of the branches and region in the next one year. For the full-year ending December 2014, the agency saw profits rise by 268% (year on year growth) from KShs 42.23 million in 2013 to KShs 155.23 million.

In April 2015 KCB Group also launched its Islamic Banking unit which seeks to tap into the demand for Islamic financial products across the East African region.

KCB plans to invest in the digital payments platform as the region moves towards a cashlite economy. Last month KCB invested in a revenue collection solution to facilitate collection of taxes across the country as part on its initiative to enhance service delivery to citizens in the ongoing devolution process.

Mid-last month, KCB Group rolled out an ambitious programme aimed at facilitating the collection of taxes across Kenya’s 47 counties. The revenue collection solution is part of the Bank’s wider initiative to enhance service delivery to citizens in the ongoing devolution process. The Bank has a strategic agreement with the Kenyan government to aid the disbursement of over KShs. 30Billion under the social protection programme for the aged, poor and disabled using a biometric card dubbed Inua Jamii.

The Group also recently rolled out M-Benki and Biashar@Smart (together with Safaricom), which are based on mobile phone platform. They also launched the KCB M-PESA Account, the second product under the strategic partnership between KCB Group and Safaricom. In one month, the KCB Mpesa product hit a major milestone by reaching 1 million accounts in just four weeks.

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