KCB Group Plc profit after tax for the first nine months of 2018 surged to Ksh18 billion, representing 19.6 per cent growth driven by improved cost management and increased gains from net interest income.
According to the financials, total interest income was up 5 per cent to Ksh49.2 billion from Ksh46.8 billion.
Operating expenses declined 3 per cent to Ksh26.8 billion from Ksh27.6 billion attributable to improved staff costs and loan loss provisioning.
In line with its digital transformation strategy, transactional activity continued to shift away from branches, with non-branch transactions (mobile, agency banking, point of sale terminals and ATMs) standing at 87 per cent of total volumes, compared to 13 per cent handled at the branches.
Deposits hit Ksh526.8 billion, a 6.1 per cent jump, resulting in an improved liquidity position. The loan book expanded 3.7 per cent to Ksh435.2 billion.
Highlights of Financial Performance;
| Profitability | · Profit After Tax up 19.6% to Ksh18B from Ksh15.1B · Cost to income ratio 49.7% from 51.9% · Return on Average Equity- Up to 22.8% from 20.1% |
| Efficiency | · Operating expenses down 3% to Ksh26.8B from Ksh27.6BB · Cost to Income Ratio down to 49.7% from 51.9% |
| Balance Sheet Position | · Total Assets- Up 6% to Ksh684.2B from KShs.643.8B, · Net Loans and advances Up 4% to KShs.435.3B from 419.5B · Shareholders’ equity up 15% to Ksh104.8B · Long-term debt funding- Rise to Ksh20.7B from Ksh14.4B |
| Capital Buffers | · Liquidity Ratio 33.7% · Core capital to total risk weighted assets 16.3%, (CBK minimum 10.5%). · Total capital to risk-weighted assets 17.8% (Regulatory target 14.5%). |
