KCB boasts 16% increase in H1 profits - CNBC Africa

KCB boasts 16% increase in H1 profits

East Africa

by Elayne Wangalwa 0

Kenya Commercial Bank has posted a 16 per cent rise in its pretax profits in the first half of 2014. PHOTO: Getty Images

Buoyed by fees and commissions as a result of a 14 per cent increase in customer borrowing to 244 billion Kenyan shillings, the group’s profit before tax stood at 11.7 billion Kenyan shillings in 30 June 2014.

“This is a very good performance which compares well with the same period last year and shows an impressive growth trend year-on-year over the past few years. The pretax profit we have announced is very much in line with our projections and is sustainable going into the future,” Ngeny Biwott, KCB Group Chairman said.

(READ MORE: Kenya's KCB bank will continue operations in conflict-hit South Sudan)

The group’s foreign exchange income leaped to 2.22 billion Kenyan shillings from 1.78 billion Kenyan shillings during the same period in June 2013 following increased market activity of its foreign exchange business. 

East Africa’s largest commercial bank, in terms of assets, reported an increase of 19 per cent to 439.7 billion Kenyan shillings up from 370.9 billion Kenyan shillings in June 2013 in it total assets.

The group’s net interest income was up by 7 per cent to 17.1 billion Kenyan shilling in 2014. While customer deposits increased to 351.6 billion Kenyan shillings from 287.7 billion Kenyan shillings.

With six subsidiaries across the East African region, KCB reported an overall improved performance and contributed 7.3 per cent to the group profits.

(READ MORE: Kenya's Safaricom & KCB set to transform entrepreneurship)

Irrespective of challenges posed by the recent political scuffles in South Sudan, the lender is looking to open two additional branches in Juba, the nation’s capital city as business starts to pick up in the war-torn country.

The lenders performance highlights the momentum of KCB’s strategy. The bank is aiming to drive business growth and also to reinforce the confidence in its near three million customers.

With the largest branch network in the region of 236 branches, 950 ATMs and over 8,000 agents, KCB is planning to roll out mobile banking and agency services to its subsidiaries in the next quarter.

The lender also plans to offer Islamic banking products through its entire branch network, accelerating the expansion of sharia-compliant banking in Kenya.

Earlier in the month, KCB was feted as the best bank in Kenya at the prestigious Euromoney Awards for Excellence 2014. 

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