KCB reports Sh4.3 billion after tax profit

KCB Group chief executive Joshua Oigara speaks during release of the group’s 2015 first quarter financial results at Kencom House, Nairobi, yesterday. The bank reported a 12 per cent rise in after tax profit. PHOTO | DIANA NGILA | NATION MEEDIA GROUP 

In Summary

• Group executive officer Joshua Oigara said the performance was realised on the back of higher interest income, fees and commissions arising from new business lines.
• Net loans and advances increased by 27 per cent from Sh233.8 billion to Sh297 billion, while customer deposits registered a similar rate of growth from Sh313.5 billion to Sh397.1 billion.
• KCB has been expanding its business lines and recently launched an insurance agency to venture into bancasurance.

By MWANIKI WAHOME
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KCB Group has announced a 12 per cent rise in after-tax profit to Sh4.3 6 billion for the first three months of the year ended March 31, driven by increased lending and new income streams.

The bank reported Sh3.9 billion in same period last year.

Group executive officer Joshua Oigara said the performance was realised on the back of higher interest income, fees and commissions arising from new business lines.

He said the performance was a result of a sustained push to grow non-funded income, as well as cost management initiatives across Kenya and international businesses.

Net interest income registered 11 per cent growth from Sh8.3 billion to Sh9.3 billion. Fees and commissions grew by 19 per cent from Sh2.7 billion in 2014 to Sh3.2 billion.

“The impressive earnings are as a result of a continued focus on the business to drive up non-funded income. Fees and commissions grew by 19 per cent as a result of increased transaction volumes and new products, which we have rolled out to meet changing customer needs.

We see the partnership with Safaricom as a game-changer in the financial services sector. For us, such partnerships are meant to make financial services more accessible to the general population,” said Mr Oigara.

The bank’s total assets grew by 24 per cent from Sh411.4 billion to Sh510.3 billion.

Net loans and advances increased by 27 per cent from Sh233.8 billion to Sh297 billion, while customer deposits registered a similar rate of growth from Sh313.5 billion to Sh397.1 billion.

Shareholder funds expanded by 19 per cent from Sh66.8 billion to Sh79.4 billion in the period under review.

The bank’s long term debt funding increased by 24 per cent from Sh10.3 billion to Sh12.7 billion.

The bank’s total operating income stood at Sh13.9 billion from Sh13.1 billion in the period under review.

KCB has been expanding its business lines and recently launched an insurance agency to venture into bancasurance.

Mr Oigara said the agency registered 268 per cent growth in profits by end of December from Sh42.23 million in 2013 to Sh155.23 million. He said going forward, the bank intends to leverage on advancements in technology to grow profits for 2015 and improve financial inclusion and service delivery to customers within East Africa.