KCB Group Reports 5% Increase In After Tax Profits To Ksh 25.2 Billion

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KCB has reported improved profitability and higher returns to shareholders for the full year ended December 2019.  The lender posted a 5% jump in
profit after tax to KShs.25.2 billion.

Loan book growth, non-funded income from the digital banking and cost management initiatives across the business, were reported the key drivers to the profits.

Total income increased 17% to KShs.84.3 billion while operating expenses decreases by 10%. Net interest income expanded 15% to KSh 56.1 billion from KShs. 48.8 billion primarily due to a 17% growth in loan book, digital lending and additional interest income from NBK.

Despite the challenging economic conditions witnessed in the various markets and the wider global economy, KCB Group CEO and MD, Joshua Oigara said the business remained  resilient.

“The East African region continued to face various downside risks that ranged from adverse weather patterns to stress from currency fluctuations
and the pressure from oil imports. All business lines were strong on both funded and non-funded income as cost control, operational efficiency and driving excellent customer experience remained a top priority,” said Mr. Oigara.

Investments in digital channels impacted the non funded income  pushing it up  22.6% to KShs.28.2 billion from KShs.23.0 billion in 2018. Non-bank transactions increased to 97% with a majority of them conducted via mobile devices. Mobile loans advanced increased to KShs. 212 billion from KShs. 54 billion in 2018.

Having generated high returns to the shareholders, the lender distributed part of the profit by way of an interim dividend of KShs 1.0 per share in the financial year. The Board has proposed a final dividend of KShs. 2.5 per share to be presented to shareholders in the Annual General Meeting scheduled for May this year.

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