KCB annual net profit hits Sh600bn

Wednesday March 18 2020

 

By The Citizen Reporter @TheCitizenTZ news@tz.nationmedia.com

Dar es Salaam. KCB Group Plc recorded a strong performance during the year that ended in December 2019 after improving profitability and higher returns for shareholders.

The bank’s final annual results posted on the Dar es Salaam Stock Exchange (DSE) website show that profit-after-tax jumped by five percent to Ksh25.2 billion (nearly Sh600 billion) last year, rising from the Ksh24 billion (nearly Sh500 billion) recorded in 2018.

The increase for the DSE crosslisted bank was on the back of loan book growth, non-funded income from the digital banking and cost management initiatives across the business.

Both Kenya’s business and international subsidiaries including Tanzania delivered strong income growth, according to the results statement.

Total income increased 17 percent (to Ksh84.3 billion), while operating expenses grew much slower by ten percent, resulting in an improved cost-to-income ratio of 45.7 percent, compared to 48.7 percent the previous year.

Net interest income expanded 15 percent to Ksh56.1 billion from Ksh 48.8 billion primarily due to a 17 percent growth in loan book, digital lending and additional interest income from NBK.

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Fees and commissions surged 39 percent, rising to Ksh19.8 billion on diversified income streams.

On the other hand, total operating income went up by 17 percent, rising from Ksh71.8 billion to Ksh84.3 billion.

The KCB Group chief executive officer and managing director, Joshua Oigara, said the business remained resilient despite the challenging economic conditions witnessed in various markets and the wider global economy.

“The East African region continued to face various risks that ranged from adverse weather patterns to stress from currency fluctuations,as well as pressure from oil imports,” the statement quoted the chief as saying.

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