FINANCIALS

KCB Group end year profit up 5% to Sh25.2 billion

Total assets surged 26 per cent to Sh899 billion from Sh714 billion in 2018

In Summary
  • The bank enhanced investments in digital channels pushed non funded income up 22.6 per cent to Sh28.2 billion from Sh23 billion in 2018.
  • Fees and commissions surged 39 per cent to Sh19.8 billion on diversified income streams.
KCB chief executive Joshua Oigara on March 2. Photo/Enos Teche.
KCB chief executive Joshua Oigara on March 2. Photo/Enos Teche.

KCB Group Plc has reported a five per cent growth in net profit to Sh25.2 billion for the year ended December 31 on improved loan book and digital efficiency.

Speaking while unveiling the results, the KCB Group MD Joshua Oigara said 97 per cent of the bank's transactions are performed outside branch.

The bank enhanced investments in digital channels pushed non funded income up 22.6 per cent to Sh28.2 billion from Sh23 billion in 2018.

 

“Our investments in diversified channels are giving our customers a means to access banking services conveniently, at a competitive prices and in line with our purpose of simplifying their world to enable their progress,'' Oigara said.

The NSE listed lender's net interest income expanded 15 per cent to Sh56.1 billion from Sh48.8 billion primarily due to a 17 per cent growth in loan book, digital lending and additional interest income from NBK.

Fees and commissions surged 39 per cent to Sh19.8 billion on diversified income streams.

Mobile loans advanced increased to Sh 212 billion from Sh54 billion in 2018. The cumulative disbursement via mobile over the past five years totaled to Sh319 billion.

The ratio of non-performing loans to total loan book increased to 10.9 per cent ), well below the industry average of 12 per cent. As a result, provisions for impairment increased to Sh8.9 billion from Sh2.9 billion.

KCB Group has maintained its position as the biggest bank in Kenya in terms of asset value, with total assets surging 26 per cent to Sh899 billion from Sh714 billion in 2018.