Kenya Commercial Bank (KCB Group) has reported a 15% growth net profit to Ksh 15.9 billion in the nine months to September 2016 supported by a 27% increase in net interest income to Ksh 36.1 billion.
Total expenses increased by 7% while provisions for bad debts were down 11% to KSh 3.4Billion and total non-performing loans for the group increased by Ksh 5.4 billion during the nine month period to Ksh 26.54 billion.
The bank said it had successfully re-implemented an upgrade of its core banking system T24 to boost operational efficiencies, facilitate technology innovation, and allow for easier interface with other platforms and increase reliability.
“The new system offers increased functionality and great customer experience and is a firm base for our journey towards a service oriented architecture in line with our customer strategy,” said the Group CEO Joshua Oigara.
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The Group’s total assets declined by 6% year on year to Ksh 570 billion from Ksh 607 billion, attributed to currency devaluation in the South Sudan market.
Net loans and advances were up 5% from KShs. 347.6Billion to KShs 364.5Billion during the period. This growth was largely driven by the Kenya business which registered an 8% growth.
Group deposits declined by 7% to Ksh 436.8billion from Ksh 471 billion recorded in September 2015, the decline also attributed to the devaluation of the South Sudan currency. However, KCB Bank Kenya Customer deposits had an impressive growth of 14%.
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The number of users currently on mobile phone stands at 10.2Million, while the number of mobile accounts grew by 98% from 4.3Milion in Quarter 3, 2015 to 8.3Million in a similar period this year. According to the CEO, the registered customers on mobile make up over 75% of the total customer base in the Bank. He also noted that its mobile loans hit an average of 80,000 per day on daily requests in the month of September 2016.
Total Insider loans grew from Ksh 12.57 billion in March to Ksh 14.63 billion as at the end of September of which the directors, shareholders & associates accounted for Ksh 3.11Billion while KCB Group’s 6080+ employees accounted for Ksh 11.52 Billion of the insider loans.
Share Price;
On Tuesday’s trading session at the Nairobi Securities Exchange, KCB Group closed at Ksh 29 per share, representing a -32.16% decline over the last one year and -28% since 25th May 2016 as illustrated in the chart above.
