KCB 2013 profit rises to Sh14.3bn

February 27, 2014
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Group CEO Joshua Oigara noted that the overall operating environment in the year 2013 was favourable for business as inflation rates ranged between 3.2 percent and 8.29 percent/FILE
Group CEO Joshua Oigara noted that the overall operating environment in the year 2013 was favourable for business as inflation rates ranged between 3.2 percent and 8.29 percent/FILE
NAIROBI, Kenya, Feb 27 – Kenya Commercial Bank (KCB) has announced a 17.5 percent rise in 2013 full year net profit to Sh14.3 billion from Sh12.2 billion in the previous year.

Speaking during an investor briefing on Thursday, KCB Chairman Ngeny Biwott said the bank implemented growth strategies through partnerships, collaboration and innovation in the region, hence the improved performance during year under review.

As a result, the board has proposed the payment of a first and final dividend of Sh2 per share from Sh1.90 paid in 2012, which represents a six percent increase.

“This performance is aligned to our blueprint road map to strengthen our regional outfit through cross border trade transactions on our one-branch-banking platform and roll out technology driven products in these markets,” he said.

During the year, net interest income grew by eight percent from Sh30.6 billion to Sh33 billion while the bank’s balance sheet grew by six percent from Sh368.4 billion to Sh391.5 billion.

Customer deposits grew modestly by six percent from Sh288 billion to Sh305.7 billion following a strategic decision to release high cost deposits.

Net loans and advances grew by eight percent from Sh211.6 billion to Sh227.7 billion.

“We see a lot of potential demand for credit in the transport and communication, trade, manufacturing and agriculture sectors that supports our business growth in the medium term,” Biwott noted.

The bank’s total operating expenses also went up by seven percent from Sh25.3 billion to Sh27 billion attributed to one-off restructuring costs carried out in 2013.

Meanwhile, KCB Group CEO Joshua Oigara noted that the overall operating environment in the year 2013 was favourable for business as inflation rates ranged between 3.2 percent and 8.29 percent.

On the other hand the Central Bank Rate (CBR) stood at 8.5 percent while foreign exchange against the dollar slightly weakened to between Sh85 to Sh87 contributing to financial stability in the market.

“The strategy going forward in 2014 is to leverage on technology driven products to mobilise customer deposits. The next phase of development is expanding the product portfolio and upgrading channel platforms for mobile banking services and replicating the same to the other markets,” Oigara said.

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