KCB Group Plc reported a net profit of Kshs 18.04 billion for the nine months to September 30, 2018, representing a 20% growth over same period last year.
Some of the key highlights of the Q3 Net Profit include:
- The improved performance was primarily driven by robust cost management and growth in net interest income.
- Total operating income was up by 2% to close at Kshs 54.2 billion with an improved show from non-interest income which accounted for 33% of the Group’s income.
- Non-branch transactions have continued to grow and now stand at 87% of total volumes, compared to 13% handled at the branches.
- Agency banking transactions grew by 74%
- Mobile banking was up by 34%, with ATM and Point Of Sale transactions increasing by 36% and 16% respectively.
- Totaloperating expenses declined by Kshs 2.1 billion driven by lower staff costs and loan loss provisioning.
- Group’s balance sheet improved by 6% to KShs.684.2 billion from Kshs 643.8 billion in 2017. Deposits grew by a similar margin to KShs.526.8 billion from Kshs 496.3 billion, an indication of the value customers attach to the Bank,
supporting the healthy liquidity position of 33.7%.
- Net loans and advances were up 4% to KShs.435.3 billion from Kshs 419.5
billion while long term funding stood at Kshs 20.7 billion from the previous
period’s Kshs 14.4 billion.
“Our focus on technology driven growth continues to deliver both client
satisfaction and efficiencies while keeping costs under control and diversifying the income streams,” said the KCB Group CEO and MD Joshua Oigara.
In the first quarter, KCB obtained a US$100 million Line of Credit (LOC) from the African Development Bank (AfDB) to be used for on-lending to corporate businesses and Small and Medium Enterprises (SMEs).
The asset quality improved for the second straight quarter with NPL ratio
closing at 7.5% and post IFRS 9 implementation coverage ratio increasing
from 41.5% to 80.8%.