KCB Group records a before tax profit of KShs. 22.9Billion from KShs. 19.3Billion

KCB Group has recorded a before tax profit of KShs. 22.9Billion from KShs. 19.3Billion in a similar period last year, KCB Group CEO and MD Joshua Oigara said yesterday.

The Group recorded a 27% growth in Net Interest Income, driven by asset book growth, better yields and reduction in cost of funds.

“The performance reflects continued resilience across the seven markets that we operate in. The business benefitted largely from a diversified income structure, prudent cost management and deliberate investments in infrastructure and digital channels,” said Mr. Oigara while releasing the results.

The released financials showed that total expenses increased by 7%, to support business growth, investment in channels and infrastructure. Provisions for bad debts were down 11% — to KShs.3.4Billion in September 2016. Overall Group gross nonperforming loans declined by KShs.1.9Billion on a quarter to quarter basis on the back of enhanced Credit processes and recoveries.

In the month of August 2016, the bank successfully re-implemented an upgrade of its core banking system T24 to boost operational efficiencies, facilitate technology innovation, and allow for easier interface with other platforms and increase reliability. “The new system offers increased functionality and great customer experience and is a firm base for our journey towards a service oriented architecture in line with our customer strategy,” added the Group CEO.

The Group’s total assets declined by 6% year on year attributed to currency devaluation in South Sudan market. Total assets without the South Sudan component increased by 10%. The pressure on the South Sudan Pound continues to grow since December 2015 when the currency was floated.

Mr Oigara said the Group’s asset book is poised to grow steadily as the Bank makes bigger investments in technology systems and digital platforms to support the business while consolidating the international business. “We see the new fin-tech capabilities giving us a strong business position and stable performance in the coming years as the future of banking shifts into digital,” said Mr. Oigara.

Highlights 

Total Assets: Down 6% from KShs. 607.2Billion to KShs. 570.1Billion

Net Loans and Advances: Up 5% from KShs. 347.6Billion to KShs 364.5Billion

Customer deposits: Down 7% from KShs. 471Billion to KShs 436.8Billion

Shareholder Funds: Up 12% from KShs. 81.8Billion to KShs. 91.9Billion

Liquidity Ratio: 30.7% (CBK minimum-20%).

Long term debt funding: Down 29% from KShs. 22.5Billion to KShs. 15.9Billion

Profit Before Tax: Up 18.3% from KShs. 19.3Billion to KShs. 22.9Billion

Net Interest Income: Up 27% from KShs. 28.3.Billion to KShs. 36.1 Billion

Total Expenses: Up 7% from KShs. 22.4Billion to KShs. 24Billion

Provisions for bad debts: Down 11% from KShs. 3.8Billion to KShs.3.4Billion on enhanced recoveries, upgrades and Credit Processes.