KCB Group recorded KShs.19.7 billion in after-tax profit for the period ended December 31, 2017 attributable to a robust loan book growth that offset the impact of lower interest rates following the introduction of the law capping interest rates, a significant growth in fees and commissions resulting from increased usage of our digital channels.
Group CEO and MD Joshua Oigara said on Thursday that the lender grew market share while at the same time recorded gains from cost-reduction programmes and improved operational efficiency.
“The business maintained a strong capital position enabling continued focus on our core lending segments in Retail and Corporate banking, deliberate investments in key strategic themes that are focused on delivering top-notch customer service and leveraging on digital channels for delivery of financial solutions resulting in the sustained growth in shareholder value,” Mr Oigara told an investor briefing in Nairobi.
The group attributes the growth to a successful digital transformation exercise with over 13 million mobile customers, disbursement of over KShs 30 billion in mobile loans. Over 87% of transactions handled outside branch network.
Staff rationalisation programme to enhance the business model for efficient sustainable growth and integration of 8 Sustainable Development Goals (SDGs) into KCB Group strategy as part of the sustainability agenda.
The firm’s total assets were up by 9% from KShs. 595.2bn to KShs 646.7bn. It’s Net Loans and Advances were up 10% from KShs 386bn to KShs. 423bn and customer deposits were up 11% from KShs. 448.2bn to KShs.499.5bn bringing its profit after tax to KShs 19.7bn – flat to 2016.
By December 2017, KCB had over 13 million mobile customers and had disbursed over KShs. 30billion in loans through the platform. At least 57% of transactions are on mobile, 15% were handled through the Bank’s agents, 10% via the wide ATM network, 5% on various point of sale terminals while the balance was at the branch network.
“In South Sudan, hyper-inflation impacted on business but we remain optimistic that the political situation will take a turn for the better. Rwanda elections passed uneventfully, which was a positive indicator for business and investment in the region,” he added.
However, some KCB customers have claimed their bank accounts have had unexplained deductions and some account balances were cooked and others were negative. The bank, in a statement said, “KCB is aware of social media conversations regarding allegations of unauthorised deductions in clients’ accounts. As a trusted financial partner, we take our duty of confidentiality to our customers seriously and resolve any issues that may arise directly with the customer.”