KCB Group pre-tax profit surged to KShs. 6.6 Billion in the first quarter of 2016 ending March, driven by a rise in interest income, stable earnings from subsidiaries and prudent cost-management as well as an increase in use of digital platforms and mobile money by its customers.
KCB Group Chief Executive Officer, Mr. Joshua Oigara, said the lender recorded an upsurge in lending and transactions performed through digital platforms.
“We are excited about the continued growth of the business across markets and we are confident that digital payments and mobile money will deliver significant growth for the Group. We see these two as key catalysts in deepening financial inclusion,” said Mr. Oigara.
Net loans and advances grew by 16% driven by our Corporate and Retail businesses coupled with increased use of KCB Mpesa which now has a customer base of over 7 million users and over Ksh10 billion worth of loans disbursed since its inception in March last year. This saw net interest income shoot up by 24%. Total assets registered an increase of 9% to KShs. 556.8 Billion.
The Bank said it will continue making deliberate investments and focus on building a business around diversification, prudent cost management, a robust IT system while remaining synonymous with excellence in customer experience at all service points across the Group to boost the efficiency of the business.
The financial results show the Bank was compliant on all mandatory capital buffers by the Central Bank of Kenya, giving it enhanced resilience.
“The Bank continues to meet the capital regulatory ratios. The additional capital injection through tier 2 debt and the rights issue approved by shareholders last month is expected to improve the ratios considerably” said Mr Oigara.
KCB has in the past one year been able to develop superior expertise in micro lending, through a strategic partnership and product innovation with Safaricom. The focus on the micro, small and medium enterprises is to not only harness the large numbers of businesses in the region but to also work with them to grow into mid-sized and even large corporates of the future.
Last month, KCB was appointed by the Central Bank of Kenya as receiver manager of Chase Bank, an assignment which is a confirmation of the market leadership profile that the lender holds across East Africa as a strong bank with a solid brand proposition and experience in the region.
Here are some Key Performance Highlights:
Total Assets: Up 9% from KShs. 510.2bn Profit Before Tax: Up 6% from KShs.
to KShs 556.8bn 6.2bn to KShs.6.6bn
Net Loans and Advances: Up 16% from Net Interest Income: Up 24% from KShs.
KShs 297bn to KShs. 345.9bn 9.3bn to KShs. 11.4bn
Customer deposits: Up 7% from KShs. Provisions for bad debts: up 149% from
397.1bn to KShs.423.4bn KShs. 550Mn to KShs. 1.4Bn.
Shareholder Funds: Up 6% from KShs
79.4bn to KShs. 83.9bn
Long term debt funding: Up 54% from
KShs. 12.72bn to KShs. 19.6bn