KCB group’s net earnings in the first quarter of 2019 went up by 11 per cent from KSh5.18 billion in 2018 to KSh5.77 billion. The high profits were supported by an 11 per cent increase in net interest revenue, which hit KSh12.7 billion. Most of the interest income came from government securities. The bank also posted a 9 per cent rise in non-interest income which amounted to KSh6 billion.
Following a shift in accounting rules from IAS 36 to IFRS 9, KCB’s loan loss provisions jumped up by 94 per cent from KSh600 million to KSh1.16 billion. The sharp rise in loan loss provisions led to an increase in operating expenses of 8 per cent. Despite the rise in total costs, KCB posted impressive net earnings. The bank recorded a 7.7 per cent drop in rental charges thanks to its investments in digital platforms and a steady shift from banking hall transactions.
In the three months up to 31st March 2019, KCB’s total assets grew by 1.6 per cent to reach KSh726 billion while its total liabilities grew by 0.9 per cent to KSh606 billion.
