KCB recently released its half year results on the 15th of August 2019. The bank had a 5% increase in net profit from KSh12.1 billion in the first half of 2018 to KSh12.7 billion in the first half of 2019. The jump is attributed to a 5% rise in net interest income and 15% increase in non funded income.
KCB is expected to continue to focus on its mobile platforms given that 96 percent of the bank’s transactions are done through mobile banking, online platforms, and agency banking.
The net interest income growth was at 5% and this was below expectation due to the decline in loans’ yield. The bank’s average yield of loans declined to 11.4% compared to 12.4% in 2018.
The 15% non funded income growth was attributed to the increase in fees and commission income.
The loan loss provision rose by 266% from 828 million to 3 billion due to the adoption of IFRS 9. The bank’s directors approved a KSh1 interim dividend for every ordinary share.
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