Strong loan growth in Kenya business and prudent cost management initiatives.
Strong loan growth in Kenya Business and prudent costs management initiatives helped push up KCB Group pretax profits 18.3 per cent in the third quarter of 2016.
Profit before tax for the nine months ending September 30, 2016 rose to KShs. 22.9Billion from KShs. 19.3Billion in a similar period last year, KCB Group CEO and MD Joshua Oigara said today.
- Total Assets: Down 6% from KShs. 607.2Billion to KShs. 570.1Billion
- Net Loans and Advances: Up 5% from KShs. 347.6Billion to KShs 364.5Billion
- Customer deposits: Down 7% from KShs. 471Billion to KShs 436.8Billion
- Shareholder Funds: Up 12% from KShs. 81.8Billion to KShs. 91.9Billion
- Liquidity Ratio: 30.7% (CBK minimum-20%).
- Long term debt funding: Down 29% from KShs. 22.5Billion to KShs. 15.9Billion
- Profit Before Tax: Up 18.3% from KShs. 19.3Billion to KShs. 22.9Billion
- Net Interest Income: Up 27% from KShs. 28.3.Billion to KShs. 36.1 Billion
- Total Expenses: Up 7% from KShs. 22.4Billion to KShs. 24Billion
Provisions for bad debts: Down 11% from KShs. 3.8Billion to KShs.3.4Billion on enhanced recoveries, upgrades and Credit Processes.
The Group recorded a 27% growth in Net Interest Income, driven by asset book growth, better yields and reduction in cost of funds.
“The performance reflects continued resilience across the seven markets that we operate in. The business benefitted largely from a diversified income structure, prudent cost management and deliberate investments in infrastructure and digital channels,” said Mr. Oigara while releasing the results.
The Q3 financials showed that total expenses increased by 7%, to support business growth, investment in channels and infrastructure. Provisions for bad debts were down 11% — to KShs.3.4Billion in September 2016. Overall Group gross nonperforming loans declined by KShs.1.9Billion on a quarter to quarter basis on the back of enhanced Credit processes and recoveries.