KCB posts Sh10.1bn H1 pre-tax profit

KCB Group Chief Executive Officer Joshua Oigara attributed the result to increased business and improved operational efficiencies/FILE

KCB Group Chief Executive Officer Joshua Oigara attributed the result to increased business and improved operational efficiencies/FILE

NAIROBI, Kenya Aug 29 – Kenya Commercial Bank (KCB) has announced a 19 percent jump in its profit before tax to Sh10.1 billion in the half year ended 30 June 2013 from Sh8.5 billion same period in 2012.

Net loans and advances went up from six percent from Sh202 billion to Sh214 billion while customer deposits went up three percent from Sh279 billion to Sh288 billion.

KCB Group Chief Executive Officer Joshua Oigara attributed the result to increased business and improved operational efficiencies.

“We are beginning to benefit from our investment in cost transformation initiatives that ensure high operational efficiency and we believe we can bring this ration down below 54 percent by year end as we streamline further our operations,” Oigara said.

He said that total expenses rose by six percent from Sh11.9 billion to Sh12.7 billion owing to one off restructuring costs.

Increased volumes in mobile, money transfer and agency banking transactions over the last six months led to the improvement in fees and commissions income that went up by 9 percent from Sh4.6 billion in June 2012 to Sh5.0 billion.

Net interest income for the six months period grew by 12 percent to Sh16.1 billion up from Sh14.3 billion during the same period last year reflects the marginal increase in net loans and advances.

The bank’s balance sheet grew from Sh349 billion in June 2012 to stand at Sh371 billion in June 2013 a six percent growth maintaining its top position as the largest bank in the region in terms of asset and capital base.

Shareholders equity went up by 20 percent to Sh55.8 billion in June 2013 from Sh46.4 billion in June 2012.

Looking ahead, the group is focusing on its alternative channels to grow deposits and drive customer growth, new innovations as well as leveraging in Information and Communication Technology.

“In the next of the year the bank will focus on business consolidation, operational efficiency, customer service, talent maximization and technology and innovation to enhance performance and competitiveness in the business,” he said.