KCB posts 10pc jump in profit after tax to Sh13.7 billion

KCB Chief Executive Officer Joshua Oigara. KCB has reported Sh13.7 billion in profit after tax, up from Sh12.48 billion in a similar period last year. PHOTO | SALATON NJAU | NATION MEDIA GROUP 

By OTIATO GUGUYU
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Kenya Commercial Bank Group has reported Sh13.7 billion in profit after tax, up from Sh12.48 billion in a similar period last year.

The bank’s nine-month profit rose 10 per cent as the bank announced plans to open a representative office in Ethiopia.

The Kenyan business contributed 88 per cent of the profit, posting Sh11.9 billion, up from Sh11.3 billion last year.

Its regional businesses, whose contribution rose from seven per cent in 2014 to 12 per cent this year, saw Uganda, Rwanda, Tanzania, Burundi and South Sudan jointly grow profits by 74 per cent.

The earnings were also boosted by net-interest income, which grew by 10 per cent, fees and commissions (up by 14 per cent) and cost-cutting measures.

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“Across the six markets we operate in, we experienced a relatively challenging economic environment on the overall, we have seen the business show great resilience arising from our deliberate focus on prudent cost-management and efficiency in operations, a trajectory we expect to continue in the remaining part of 2015,” KCB Chief Executive Officer Joshua Oigara said.

KCB-M-Pesa continued to show promise, with Sh4.3 billion disbursed as of September and 1.9 million loans approved since March 2015.

Mr Oigara said the bank is on track to register more than five million new customers by the end of the year.

KCB hopes to ride on its strong balance sheet, diversified products and expansive regional and national footprint to deepen its financial inclusion agenda in the existing and into four new markets by 2020.