KCB Group has reported a net profit of Sh19.7 billion which is a slight decline of about -0.1% compared to the previous year.
The lender admits that 2017 was a tough year because the macroeconomic environment in East Africa declined. As a result, regional branches performed below the lender’s bottom line.
“We shrugged off a quite testing business environment across markets. The full effect of the law capping interest rate in Kenya marked by a slow business environment on account of the general election negatively hit businesses and the economy at large,” KCB Group Chairman Ngeny Biwott stated.
KCB Group’s Audited Results
Net interest income grew by +1.4% to Sh 63.7 Billion while non funded income was up 2.5% to Sh 23 Billion while loan loss provision expenses increased by 55% from Sh3.8 billion to Sh5.9 billion.
The Group reported a 9% increase in total assets from Sh595.2 billion to Sh646.7 billion. Net loans and advances rose by 10% from Sh386 billion to Sh423 billion while customer deposits surged 11% from Sh448.2 billion to Sh499.5 billion.
Gross non performing loans increased by 17.9% to Sh 37.5 Billion. The lender’s board declared a dividend payment of Sh 2.00 per share, unchanged from the previous year.