KCB Group, Kenya's largest lender by assets, reported yesterday profit after taxation for three months through March rose by a marginal 6.19 per cent to Sh4.63 billion, boosted by increased interest earnings.
The bank's profit, however, fell behind its main competitor Equity Bank whose net profit rose19.30 per cent to Sh5.13 billion, also supported by interest income which jumped 36.5 per cent to Sh11.2 billion.
KCB's loan book, it said in an unaudited financial statement, expanded by Sh48.91 billion in the January-March period to Sh345.94 billion, helping grow its net interest income by 23.65 per cent to Sh11.45 billion compared to the same period last year. Net bad debt rose to Sh13.76 billion from Sh9.42 billion, of which Sh10.65 billion was secured leaving KCB with a net exposure of Sh3.10 billion.
The lender, held 17 per cent by the state, mobilised Sh26.33 billion more in deposits to Sh423.43 billion compared to Sh397.10 billion in the same period last year. Total non-funded income, mainly transactions fees and commissions, dropped 14.89 per cent to Sh4.03 billion from Sh4.63 billion previously.
Operating expenses increased by 15.94 per cent to Sh8.87 billion.
“We are confident that digital payments and mobile money will deliver significant growth for the Group,” CEO Joshua Oigara said.
KCB took over management of mid-sized Chase on April 20 and is also processing payments of up to Sh1 million – which have been temporarily suspended by the High court – for Imperial Bank clients together with Diamond Trust Bank.
