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KCB Group shows resilience to post Sh10.2Bn HY profit

KCB Group Chief Executive Joshua Oigara has said the bank remains resilient adding that the management has put up strategies to boost earnings largely through digital channels.

NAIROBI, Kenya, Aug 2 – KCB Group has posted a Sh10.2 billion profit for the first half ending June 2017 buoyed by a strong performance of its retail and corporate banking, and non-interest income.

The retail and corporate loan book growth momentum and the prudent management of interest expense cushioned the bank against expected impact of interest rate capping.

KCB Group Chief Executive Joshua Oigara has said the bank remains resilient adding that the management has put up strategies to boost earnings largely through digital channels.

“The banking sector continues to undergo numerous challenges and as a Bank, our continous innovation and customer centric orientation ensures that we remain focused on acting as an enabler for progress to our customers. That is what drives us to excellence,” Oigara said.

Forex income increased 3 percent to Sh2.64 billion from Sh2.57 billion a similar period last year while fees and commission went up 14 percent to Sh7.21 billion.

Total loans and advances increased by 17 percent to Sh407 billion driving the growth of total assets to Sh630.6 billion.

“The growth in the balance sheet further strengthens the Bank’s capability to run a stronger regional business across East Africa.”

Customer deposits increased to Sh482.8 billion representing a growth of 1 percent. This marginal growth is attributed to the continued hyperinflation in South Sudan.

KCB has over the past three years pursued a strategy which departs from the traditional brick and mortar banking channels to non-branch channels, particularly digital platforms.

“This strategy focuses on growing digital banking so as to enhance the experience of our esteemed customers whenever they interact with us and at the same time spread our network in KCB,” Oigara added.

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Non-branch channel systems – M-benki, KCB M-PESA, Mobi and payments – accounted for 86 percent of KCB’s total transactions.

The Board of Directors has approved payment of an interim dividend of 1 shilling per share to be paid in the next 90 days.

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