KCB Group Plc has posted an after-tax profit of Sh12.1 billion for the half year of 2018 compared to Sh10.3 billion in H1 2017, indicating an 18 per cent growth. The Group’s total income rose 3 per cent to Sh35.6 billion from Sh34.6 billion.
“We are on track to delivering on our 2018 targets on the six strategic initiatives. We are seeing a more robust business that is responsive to our model of boosting non-funded activity, improving our financial strength and prudent management to consistently deliver stronger shareholder value,” Said KCB Group chief executive Joshua Oigara.
Operating costs dropped seven per cent to Sh18.5 billion from Sh19.9 billion on the back of reduced staff costs and loan loss provisioning.
“Transactional activity continued to shift away from branches, with non-branch transactions (mobile, agency banking, point of sale terminals and ATMs) standing at 87 per cent of total volumes, compared to 13 per cent handled at the branches,” the bank says.
Deposits grew nine per cent from Sh482.8 billion to Sh525 billion leading to increased liquidity while the loan book grew four per cent to Sh421.5 billion.
Shareholders’ equity surged one per cent to Sh98.9 billion attributed to the implementation of the IFRS 9 that “saw a significant reduction in statutory loan loss reserves.”
In March, KCB received a $100 million line of credit from the African Development Bank (AfDB) which will be utilised for on-lending to corporate businesses and SMEs.
“We foresee strong growth on an improved macroeconomic environment, especially in Kenya and expect improved investor confidence in South Sudan on the back of the newly signed peace agreement,” Oigara said.
The Board of Directors has approved the payment of an interim dividend of Sh1 per for every share which will paid out in November 2018.
