KCB records Ksh.19.2 billion nine-month profit


KCB records Ksh.19.2 billion nine-month profit
KCB Chief Executive Officer Joshua Oigara adresses an investor briefing during the bank's update of its 2019 half year earnings on August 15 PHOTO | COURTESY

In Summary

  • The performance which on top-line mirrors that of close rival Equity represents a 6.7 percent jump in earnings from a similar period in 2018.
  • During the period, the bank’s loan book to customers expanded to Ksh.486.4 billion from Ksh.435.3 billion with KCB cutting its investment in Treasuries.
  • Even so, the bank's share of non-performing loans (NPLs) grew by 34.1 percent to Ksh.18.5 billion resulting to increased loan loss provisioning- an added cost to the lender’s balance sheet.

KCB Group has announced the posting of a Ksh.19.2 billion net profit in nine months to September 30 on the back of increased customer lending and non-interest funded income.

The performance, which mirrors that of close rival Equity, represents a 6.7 percent jump in earnings from a similar period in 2018.

During the period, the bank’s loan book to customers expanded to Ksh.486.4 billion from Ksh.435.3 billion with KCB cutting its investment in Treasuries.

As such, the bank’s fair value investment in government securities fell 11.5 percent to Ksh.59.9 billion to keep trend with peer exits from the risk-free portfolio.

Meanwhile, customer deposits soared to a high Ksh.586.7 billion as net interest income grew by similar margins to profit after tax to hit Ksh.38.7 billion.

The lender’s leverage on digital channels meanwhile saw KCB’s share of non-interest funded income (NFI) surge forward by 17.3 percent to Ksh.21 billion as the diversified revenue streams propped up fees and commissions by 28 percent to Ksh.14.1 billion.

“We had a strong quarter and the business witnessed growth across various segments. We made continued strong investments in our capabilities to serve customers better,” said KCB Group Managing Director Joshua Oigara.

“The international businesses have continued to improve while our digital offerings are witnessing increased activity, giving the business impetus to continue growing”

KCB has consequently continued to hold value for invested shareholders with the bank’s diluted earnings per share (EPS) growing by 6.1 percent to Ksh.8.33.

Even so, the bank’s share of non-performing loans (NPLs) grew by 34.1 percent to Ksh.18.5 billion resulting to increased loan loss provisioning- an added cost to the lender’s balance sheet.

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