Technology helps boost KCB’s FY-2015 pretax profit by 12% to Ksh 26.5 Billion

KCB Group FY 2015 Results

Kenya Commercial Bank (KCB Group), the country’s biggest bank by assets, on Wednesday released its Full Year 2015 Results posting a 16% rise in Profit after Tax of Ksh 19.6 Billion compared to Ksh 16.9 Billion posted the previous period.

The lender posted a 12% increase in Profits before Tax of Ksh 26.5 Billion from 2014’s  23.8 Billion.The rise was driven by higher net interest income, non-funded income and operational efficiencies attributed to investment in Technology.

Highlights

  • The Bank said its agents had handled KSh 31 Billion worth of transactions in 2015 up from KSh 14 Billion recorded in 2014.
  • KCB said it had disbursed over KSh 9 Billion in loans to over 5 million customers with 95% transacting via KCB-Mpesa mobile money platform with a repayment of 98.5%.
  • The bank received over 3.5 Million loan applications (95%) on mobile in 2015 with a repayment of 98%.
  • KCB Group also surpassed the 10Million customer mark, marking a major milestone for the bank.
  • Total Assets grew by 14% from KSh 490.34 Billion to KSh 558Billion with Net Loans and Advances growing by 22% from KSh 284 Billion to KSh 346 Billion.
  • The contribution from KCB’s international business rose to 12.8% up from 8.3% the recorded in 2014 with an increase of Sh1.2 Billion in overall earnings

Share Price Movement

By early trading on Wednesday, KCB Group share price on at the Nairobi securities exchange had risen by 1.27% in less than 20 minutes of Trading. Trading at Ksh 40 per share which is 8.11% above its One Year low of Ksh 37 set on Jan 20, 2016.Screen shot 2016-03-02 at 10.19.28 AM.png

Future Prospects

  1. The lender aims to grow its customer and employee satisfaction to 85% in 2016
  2. The Bank has opened an Office in Ethiopia and is waiting for official approval from the Ethiopian Authorities.KCB says they are looking to enter Ethiopia via digital and Mobile money platforms.
  3. The bank will also be going into the market in 2016 to raise tier two capital, said Lawrence Kimathi, KCB Group’s chief financial officer.

Downloads

Statement of Changes in Equity.pdf

KCB Group Ltd.- Audited Results & other Disclosures for the Year Ended 31st December 2015.pdf