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KCB profit grows

NAIROBI, Kenya Oct 29 – Kenya Commercial Bank (KCB) on Thursday announced a Sh5.3 billion profit before tax for its 2009 third quarter trading results. 

This marks one percent growth from Sh5.2 during the same period in 2008.

KCB Group Chairman Peter Muthoka said the bank’s performance was anchored on significant growth in operating income which went up by 23 percent to Sh17.1 billion from Sh13.9 billion as at September, 2008.

The bank’s operating profit (before provisions and tax) increased by 18 percent from Sh4.99 billion during the same period in 2008 to Sh5.9 billion.

“This is a good performance in spite of the economic hardships experienced across the world and shows the business’s ability to thrive in difficult circumstances,” Mr Muthoka said.

KCB Chief Executive, Martin Oduor-Otieno, said the growth in total operating income was driven by an impressive increase in interest revenues and foreign exchange business.

Advancement in both corporate and retail segments as well as growth in loans saw net interest income go up 36 percent to Sh10.9 billion. Foreign exchange income grew by 37 percent to Sh1.5 billion.

Mr Oduor-Otieno said growth in foreign exchange income was due to market volatility and increased volumes.

Total operating expenses increased by 26 percent from Sh8.9 billion to Sh11.2 billion in the period under review.

“We continued to invest in our new information technology system as well as expand our service delivery infrastructure in line with the expectations of our customers,” said Oduor-Otieno.

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Total assets remained stable at Sh184.7 billion although net loans and advances increased by 30 percent to Sh114.3 billion from Sh88.1 billion.  Fixed assets went up by 38 percent from Sh5.8 billion to Sh8.08 billion, due to branch network expansion and technology investments.

“We have been aggressively marketing for new loans and have a healthy pipeline that should be booked within a short period hence showing a promising outlook for the remainder of the year,” commented the Chief Executive.

The bank’s infrastructure has benefited from the growth in its branch network to the current 203, and ATM network expansion to 280 outlets.

Customer deposits were up significantly by 36 percent from Sh110.99 billion to KSh150.9 billion this year.

“The launch of our Micro and SME products as well as the ongoing  deposit mobilisation campaign have been very successful in attracting new deposits and growing our Retail business,” the CEO said.

Shareholders’ equity went up by seven percent to Sh22.2 billion from Sh20.8 billion in the last period.

“We are a strong regional bank and are poised for growth with our new core banking system now able  to support our large branch network in delivering quality customer service  efficiently,” Mr Muthoka said.

Mr Oduor-Otieno, expressed confidence in the bank’s profit outlook for this year adding KCB will use its wide branch network, variety of products and services and new information technology platforms to grow its business.

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