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KCB Group posts Sh12.1b half year profit on rising non-funded income

KCB Group Chief Executive Officer Joshua Oigara

NAIROBI, Kenya, Aug 16 – KCB Group profit for the first six months of 2018 hits Sh12.1 billion, up 18 percent compared to same period last year.

The bank delivered the results on the back of a 7 percent decline in operating expenses to Sh18.5 billion while non-funded income contributed 32.3 percent of the total revenues.

“We are seeing a more robust business that is responsive to our model of boosting non-funded activity, improving our financial strength and prudent management to consistently deliver stronger shareholder value,” said KCB Group Chief Executive Joshua Oigara.

Transactional activity continued to shift away from branches, with non-branch transactions standing at 87pc of total volumes, compared to 13 percent handled at the branches.

During the period, KCB balance sheet grew by 6pc to Sh667.7 billion from Sh630.6 billion, driven by higher deposits and gross customer loans in an environment of controlled interest rates.

Deposits hit Sh525 billion from Sh482.8 billion, a 9pc jump, resulting in an improved liquidity position while the loan book expanded 4pc to Sh421.5 billion.

“We foresee strong growth on an improved macroeconomic environment, especially in Kenya and expect improved investor confidence in South Sudan on the back of the newly signed peace agreement,” said Oigara.

Following the results, the Board of Directors approved a payment of an interim dividend of Sh1.00 per share. Shareholders will be paid the dividend in November 2018.

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