– The net profit jumped from KSh 5.2 billion in first quarter of 2018 to KSh 5.8 billion
– Growth was attributed to among other things a healthier loan book and drop in interest expenses
– KCB Group boss Oigara said performance was also as a result sustained strategy anchored on products that provide solutions to customers
– The performance places KCB second after Equity Bank which recorded KSh 6.2 billion in after tax profit
Kenya Commercial Bank (KCB) Group’s net profit for the first quarter of 2019 has jumped to KSh 5.8 billion, 11% growth from KSh 5.2 billion it record during same period in 2018.
The lender attributed the impressive growth to robust loan book growth, drop in interest expenses and stronger non-funded income lines.
Announcing the results on Wednesday, May 22, the KCB Group CEO Joshua Oigara said while the regulatory and operating business environment remained in flux, the Group’s corporate and retail franchises continued to post impressive returns, thus helping the lender to grow its market share.
“The performance is as a result of a sustained strategy that is anchored on a simplified customer journey and products that provide solutions to our customers,” he said in Nairobi.
The CEO noted besides the upgrade on their digital banking platform in 2018, channel performance significantly improved with 91% of total transactions performed outside the branch.
“This comprised of 56% on mobile, 27% on agency, internet and POS and 8% on the ATM. In line with the strategic shift and investment in our digital channels, non-branch revenue grew 137% to KSh 3.2 billion driven by disbursement of mobile loans, which grew 270% from KSh 9.2 billion in March 2018 to KSh 33.8 billion in March 2019,” Oigara said.
The lender recorded interest income growth of 7% coupled with a 4% reduction in interest expense.
On the balance sheet side, total assets increased by 12% funded by 11% growth in deposits and the resultant loan growth of 11%.
The performance places KCB second after Equity Bank which recorded KSh 6.2 billion in after tax profit during the same period under review, a 5% growth from KSh 5.9 billion posted in 2018 same period.
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