KCB Half Year Results: Pre-Tax Profit Of Ksh. 13.2 Billion

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L - R KCB Group CFO Lawrence Kiambi, Group KCB Group CEO Joshua Oigara, KCB Group Chairman Ngeny Biwott and KCB CBO-MD Kenya Sam Makome. Picture courtesy of KCB Group

Today KCB released its half year results for 2015 and they have made a Pre-Tax Profit of KShs. 13.2 Billion. The growth is attributed to rise in funded, non-funded income, international business returns and efficient cost management. KCB Group’s profit before tax grew 13% in the first half ending June 2015, riding on increased earnings from new business lines and the international business. For the six months, profit before tax jumped from KShs. 11.7 Billion posted in June 2014 to hit KShs.13.2 Billion in June 2015.

L - R KCB Group CFO Lawrence Kiambi, Group KCB Group CEO Joshua Oigara, KCB Group Chairman Ngeny Biwott and KCB CBO-MD Kenya Sam Makome. Picture courtesy of KCB Group
L – R KCB Group CFO Lawrence Kiambi, Group KCB Group CEO Joshua Oigara, KCB Group Chairman Ngeny Biwott and KCB CBO-MD Kenya Sam Makome. Picture courtesy of KCB Group

Key Highlights

  • Profit Before Tax: Up 13% from KShs. 11.7 Billion to KShs.13.2 Billion
  • Total Assets: Up 29% from KShs. 440 Billion to KShs. 567 Billion
  • Net Loans and Advances: Up 31% from KShs. 244 Billion to KShs 321 Billion
  • Customer deposits: Up 26% from KShs. 352 Billion to KShs 443 Billion
  • Shareholder Funds: Up 20% from KShs. 65 Billion to KShs. 78 Billion
  • Long term debt funding: Up 71% from KShs. 13.1 Billion to KShs. 22.5 Billion
  • Net Interest Income: Up 13.5% from KShs 17.1 Billion to KShs 19.4 Billion

KCB Group Chairman, Mr. Ngeny Biwott, said that although the bank is facing a tough business environment in Burundi and South Sudan the bank was still able to post improved earnings. Uganda, Kenya and Tanzania experienced currency depreciation and high inflation but Rwanda was relatively stable. The group’s international (regional) business made profits which contributed to at least 10% of the Group’s earnings.

The Chairman said KCB is investing significant resources in product development and service innovation so as to improve customer experience. The bank is also developing their staff as that is their greatest asset and they are also making sure they apply the best global practices in corporate governance. The bank also has an obligation to give good returns to shareholders and the results show that they are meeting their commitments to shareholders.

KCB Group CEO Mr. Joshua Oigara “We have consistently focused on growing new business lines and strengthening the subsidiaries to drive the business to higher profitability and guarantee its sustainability. This is bearing fruit as seen in the increased earnings.” Net interest income has increased by 13.5% and gross fees and commissions have gone up by 21%.

He added that they are continually seeking new partnerships as they transform the business into a stronger regional player, and they are also strengthening existing partnerships. “We have in place a model to enhance operational competencies, revenue generation and drive greater efficiencies across the markets,” he said.

The bank’s target is to enhance financial inclusion and to build partnerships in the telecoms, transport and energy sectors, and also partnering with governments in the region. “This will also be achieved through our race to a million homes through an affordable mortgage proposition, an integrated product/service offering on bancassurance, investment banking and brokerage services, while pushing up mobile transactions and digital payments,” he added.

The KCB Mpesa partnership with Safaricom has been fruitful and the product has performed well beyond the set targets. The number of users is currently at 2.1 million and over Ksh. 2 Billion has been disbursed as loans at an average of Ksh. 130 million weekly.

The bank will in future focus on digital payments. The bank also committed to set aside Ksh.1 billion for the next 3 years to support Enterprise Kenya, the government flagship project that is geared towards spurring innovation among the entrepreneurs.

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