(Last Updated On: May 7, 2015)
Kenya’s largest bank by assets, KCB Group has reported a net profit growth of Ksh4.3 billion for the first three months of 2015. This is a profit growth of 12%. The profit before tax stood at Ksh6.2bn. Kenya accounted for 91% of the profits, South Sudan 6%, Tanzania 1%, Uganda 1%, Rwanda 1%, Burundi 1%.
Total operating income stood at Ksh13.9 billion which is a 9% rise from the Ksh12.7bn in 2014. Net interest income still make up majority of the earnings. It stood at Ksh9.25bn which is an 11% rise from the Ksh8.32 in 2014. Foreign exchange income dropped by 22% to stand at Ksh874 million, Gross fees and commissions rose by 19% to stand at Ksh3.2bn and other income dropped by 17% to stand at Ksh538 million.
Operating expenses increased by 10% to stand at Ksh7.1bn while net provision for bad debts increased by 29% to stand at Ksh550 million. Net loans and advances to customers rose to Ksh297.03bn from Ksh233.78bn. This is a 27% rise. Customer deposits also went up by 27% to stand Ksh397.1 billion. This leaves the loan/deposit ratio to stand at 74%.
New product KCB Mpesa, launched in partnership with Safaricom has registered around 1.4 million customers. It has around Ksh120 million in deposits and over Ksh0.9 million in loans.
According to the bank’s CEO, Joshua Oigara, growth in services such as insurance, Islamic banking and mobile money transfer will increase its income. There was strong performance from its subsidiaries in Rwanda, Tanzania and Burundi though the security situation in Burundi is under close watch.