KCB Group Mobile Transactions Drive Up Profits To Ksh12.7B In Half Year

KCB CEO Joshua Oigara

KCB Group has today announced its 2019 half-year financial results. For the first half of the year ending 2019 June, the bank recorded a 5% increase in the after-tax profits from Ksh 12.1B reported the same period last year to Ksh 12.7B attributable to the bank’s loan book and growth in mobile transactions with revenues from digital channels, in particular, KCB M-PESA reported to have grown significantly.

Of the total transactions by the Bank, 96% was carried out outside its branched posting an increase from 87% with mobile transactions being the key driver, recording an increase from 42% to 78%.

“We had a strong second quarter and witnessed continued growth across our businesses segments. The investment in technology generated a positive return and further helped drive efficiency and deepen access to affordable financial services in all markets,” said the Group CEO and MD Joshua Oigara.

Continued strong growth in personal and transaction accounts and anchored on the Bank’s focus on providing superior customer service, the Group’s balance sheet increased by 12% to KShs. 746.5 billion, with deposits up 7% to KShs. 563.2 billion. A 14% loan book surge to KShs. 478.7 billion was posted a reflection of the group’s robust lending system, primarily driven by the retail and corporate banking customer segment, which also increased the Net interest income by 5% to KShs. 25.4 billion as the Group maintained a strong capital base.

The group also recorded an increase in loan loss provision which saw a significant increase to KShs. 3 billion from KShs. 0.8 billion reported the same period in 2018 due to the impact of day 1 adjustments done during implementation of IFRS 9 last year.

Among its key strategic businesses initiative for the second half of the year, KCB is looking to transfer part of the assets and liabilities Imperial Bank and close up on the take over bid of National Bank of Kenya.

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Inzillia is an avid reader and researcher on matters finance, business, government affairs, culture, and human interest stories. Poetry too. Email: inzillia@urbwise.com