Increased Mobile Loan Volumes Drive KCB Group Plc Q1 2019 Net Profit Up 11% To KShs 5.8 Bn

Increased Mobile Loan Volumes Drive KCB Group Plc Q1 2019 Net Profit Up 11% To KShs 5.8 Bn

Growth driven by increased transactional activity and higher loan volumes
KCB Group PLC after tax profit grew 11% to KShs. 5.8 billion in the first quarter of 2019.

Increased Mobile Loan Volumes Drive KCB Group Plc Q1 2019 Net Profit Up 11% To KShs 5.8 Bn Stronger non-funded income lines, robust loan book growth and reduction in
interest expense drove performance from KShs. 5.2 billion reported the same period last year.

KCB Group CEO and MD Joshua Oigara said while the regulatory and
operating business environment remained in flux, the Group’s corporate and
retail franchises continued to post impressive returns, helping the lender to
grow its market share.

“The performance is as a result of a sustained strategy that is anchored on
a simplified customer journey and products that provide solutions to our
customers” said Mr. Oigara during the release of the financial performance today.

“Further to the upgrade on our digital banking platform in 2018, channel performance has significantly improved with 91% of total transactions performed outside the branch. This comprised of 56% on mobile, 27% on agency, internet and POS and 8% on the ATM.

In line with the strategic shift and investment in our digital channels, non-
branch revenue grew 137% to KShs. 3.2 billion driven by disbursement of
mobile loans, which grew 270% from KShs. 9.2 billion in March 2018 to
KShs. 33.8 billion in March 2019.”

Financials

Interest income growth of 7% coupled with a 4% reduction in interest expense, 12% increase in fees and commissions drove total income up by 11% to KShs. 18.8 billion.

On the balance sheet side, total assets increased by 12% funded by 11%
growth in deposits and the resultant loan growth of 11%.

This saw the Group’s balance sheet surge to KShs. 725.7 billion while
deposits hit KShs. 552 billion from Kshs. 496 billion.

KCB Group capital base remained well within both internal and regulatory
limits. Core capital as a proportion of its total risk weighted assets closed the
period at 18.6% against the Central Bank of Kenya statutory minimum of 10.5%. Total capital to risk-weighted assets stood at 20.0% against a regulatory minimum of 14.5%.

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