By Silvia Nyambura
KCB Group has registered a 10% rise in pre-tax profits for the first 9 months of 2015. This translates to Kshs. 19.4 billion (Ushs 679 billion) up from Kshs 17.7 billion (Ushs 619 billion). This performance was buoyed by a substantial growth in net interest income, fees and commissions and cost management initiatives.
The bank’s international business in Uganda, Rwanda, Tanzania, Burundi and South Sudan had an impressive performance. It grew by 74% year on year to contribute 12% of the Group’s profit, compared to 7% in the same period last year.
In a statement seen by The CEO Magazine, the Group’s CEO Joshua Oigara said the performance in the subsidiaries affirms the Bank’s growing role as a regional lender and a sustainable business.
“The new expansion strategy adopted for the international business is gaining momentum and underpins our regional expansion model. The September 2015 numbers are an indication of a robust business model that we have continually adopted through initiatives that support customer-centricity to deliver affordability, efficiency and convenience in deepening financial inclusion across the East African region and beyond,” he said.
Oigara explained despite the relatively challenging economic environment on the overall, the business has continued to show resilience arising from the bank’s deliberate focus on prudent cost-management and efficiency in operations.
Total assets grew by 34% to register Kshs 607.3 billion (Ushs 21.2 trillion) up from Kshs 451.6 billion (Ushs 15.5 trillion) recorded in September last year.
“This has given us the financial muscle we need as we morph into a stronger player in the wider East African market. The increase on the balance sheet is attributed to a 32% growth in loans and advances which constitute the highest proportion of the assets at 57%. Customer deposits went up 35% from Kshs 350.1 billion (Ushs 12.3 trillion) to Kshs 471 billion (Ushs 16.5 trillion) due to customer number growth and deposits,” he added.
On 14th October KCB continued its expansion journey by opening office in Ethiopia, Africa’s second largest market by population. The Bank hopes to use its presence in Ethiopia to facilitate trade between Ethiopia and other East African countries while playing part in driving economic expansion in the country. It also hopes to ride on its strong balance sheet, diversified products and expansive regional and national footprint to deepen its financial inclusion agenda in the existing and into four new markets by 2020.