KCB gets 25pc rise in profit

 

The Ngamia 1 site in Turkana where British firm Tullow struck oil. Photo|FILE  NATION MEDIA GROUP

 

By NATION REPORTER

In Summary

• Regional business also supported the growth with subsidiaries increasing their contribution to the group profitability to 14.2 per cent from 11.8 per cent in March 2012. The bank has presence in Uganda, Tanzania, Rwanda, South Sudan and Burundi.

Kenya Commercial Bank has recorded a 25 per cent increase in profits after tax for the first three months to March 31 supported by cheaper deposits and increase in foreign exchange income.

Forex income rose by 27 per cent to Sh1.05 billion while net interest income was up by 6 per cent to Sh7.4 billion for period under review. While customers deposits grew by 11 per cent to Sh287 billion, payment to depositors fell by 24 per cent to Sh2.1 billion down from Sh2.8 billion.

“This impressive performance shows continued momentum in the growth of our business and is consistent with the Bank’s financial performance and the long term view of our growth strategies replicated in all the markets in which we operate,” said KCB Group chairman, Mr Musa Ndeto, in a statement Wednesday.

Subsidiaries’ income

Regional business also supported the growth with subsidiaries increasing their contribution to the group profitability to 14.2 per cent from 11.8 per cent in March 2012. The bank has presence in Uganda, Tanzania, Rwanda, South Sudan and Burundi.

“We are optimistic on growing our lending to finance large infrastructure developments in the country, real estate, manufacturing, implementation of devolved government and small and medium enterprises to grow our business,” said KCB Chief Executive Officer, Mr Joshua Oigara.

The number of agents increased to 5,035 with 5 per cent of the bank’s retail transactions now conducted through the agency while transaction by the over 821,000 mobile banking users account for 10 per cent.