Kenya Commercial Bank has released its financial results for the three month period ended March 2018. Overall, the performance was impressive with net profit for the period rising by 14.1% to Sh 5.2 Billion while profit before tax rose by 13.5% to Sh 7.5 Billion.
During the period, total interest income grew by 11% to Sh 15.7 Billion while interest expense rose by 12.6% to Sh 4.2 Billion.Net interest income also increased by a decent 10.5% to Sh 11.4 Billion. Non-interest income was unchanged at Sh 5.5 Billion.
Net loans and advances for the period grew by 5.8% to Sh 418.6 Billion while gross Non Performing loans grew by 36.2% to Sh 43.8 Billion.
Investment in government securities rose 5.8% to Sh 112.1 Billion. Customer deposits grew 8.7% to Sh 496.4 Billion despite slower private sector credit growth (1.8% in January 2018). Borrowed funds rose 51% quarter on quarter to Sh 22.5B on as interest expense rose 13% to Sh 4.2 Billion.
The bank said branch transactions and lending had declined by 11%, 26% and 3% respectively. 87% of its transactions are now conducted outside the bank branches. Mobile loan disbursement grew 64% to Sh 9.2 Billion.
