KCB Group PLC Half Year Posts 5% Growth After Tax To Kshs 12.7 Billion

KCB Group PLC Half Year Posts 5% Growth After Tax To Kshs 12.7 Billion

KCB Group PLC has posted a 5% growth in after tax profit to Kshs 12.7 billion for the first half of 2019 ending June.

The improvement in earnings from Kshs 12.1 billion reported same period
last year, according to KCB Group CEO and MD Joshua Oigara is attributable to growth in loan book and increased mobile channel activity. Prudent cost management further supported the performance.

KCB Group PLC Half Year Posts 5% Growth After Tax To Kshs 12.7 BillionFinancial Performance

Net interest income increased by 5% to Kshs 25.4 billion, attributable to a
14% expansion of the loan book and a marginal 2% increase in the interest
expense.

Fees and commissions increased by 31% to Kshs 8.9 billion as revenues
from digital channels in particular KCB M-PESA grew significantly powered
by the new platform launched late last year. The value of loans disbursed via
the service during the period of review increased from Kshs 14.9 billion in
H1 2018 to Kshs 66.7 billion in H1 2019.

Total operating income was up 8% to Kshs 38.6 billion from Kshs 35.6
billion on the back of strong non-funded income which grew 15% to
Kshs 13.1 billion.

Operating expenses increase of 2.6% was well below inflation to close at
Kshs 17.6 billion. Loan loss provision on the other hand saw a significant
increase to Kshs 3 billion from Kshs 0.8 billion reported same period in
2018.

Balance Sheet

The Group’s balance sheet increased by 12% to Kshs 746.5 billion, with
deposits up 7% to Kshs 563.2 billion supported by continued strong
growth in personal and transaction accounts and underpinning the Bank’s
focus on providing superior customer service.

The loan book surged 14% to Kshs 478.7 billion.

The ratio of non-performing loans to total loans declined to 7.8% from 8.4%,
well below the industry average of 12.7%.
KCB Group maintained a strong capital base well within both internal and
regulatory limits. The core capital as a proportion of total risk weighted assets
closed the period at 18.0% against the Central Bank of Kenya statutory
minimum of 10.5%. Total capital to risk-weighted assets stood at 19.4%
against a regulatory minimum of 14.5%.

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