, NAIROBI, Kenya, Mar 1 – The Kenya Commercial Bank (KCB) is looking to expand its footprint beyond the greater East African region as part of its economic outlook to become a pan-African brand.
The bank announced that it will launch operations in Burundi next month adding to its regional network in Uganda, Tanzania, South Sudan and Rwanda.
KCB Group Chairman Peter Muthoka said the strong performance of its regional subsidiaries contributed to the bank’s growth, which he said are beginning to return profit.
“We plan to position KCB as a pan-African player with the capacity to support African businesses and boost the integration of our various common markets,” he revealed.
He added that KCB plans to develop the strong subsidiary contribution that amounted Sh1 billion in profit for 2011.
KCB posted a 53 percent growth in its net profits to Sh10.9 billion for the year ended 31 December 2011.
Muthoka said the performance was hinged on the growth of their revenue streams as well as the implementation for their transformation programs.
“The impressive performance was underpinned by the bank’s total operation income that grew to Sh36.9 billion from Sh29.6 billion, a 25 percent improvement,” he said.
KCB’s Total Operating Expenses went up by 19 percent from Sh18.7 billion to Sh22.3 billion last year due mainly to investment in information technology processes and one-off reorganization costs, according to the chairman.
The Group’s Chief Executive Officer Martin Oduor-Otieno said looking ahead for 2012, the bank intends to focus on boosting its top line growth to keep up the momentum from last year.
“We recognise the challenges in the economy but we believe given our size, wide branch network and customer base, regional span and products and services they will enable us to enjoy top-line growth as we go forward,” he said.
The board recommended a dividend payout of Sh1.85 per ordinary share subject to shareholder approval during the Bank’s Annual General Meeting set for June 18.
Earnings Per Share (EPS) grew 34.8 percent to Sh3.72, while Return on Equity (ROE ) was at 24.75 percent.
In addition the Group’s balance sheet grew by 32 percent from Sh251.4 million to Sh330.7 million due to an increase in customer deposits and advances to customers.