KCB Group half year gross profit increases by 13%

Regional financial services provider, KCB Group, profit before tax grew 13 per cent in the first half of the year, driven by rise in funded and non-funded income, international business returns and efficient cost management, a statement from the firm indicates. During the January-June period, the group’s profit before tax rose to Ksh13.2 billion (Rwf 89.8 billion) from Ksh11.7 billion (Rwf79.6 billion) in June 2014. KCB Group chairman Ngeny Biwott said the financier shrugged off a relatively tough business environment, especially in Burundi and South Sudan, to post the improved earnings. “We had a relatively tough macro-economic and political environment in most of the markets the bank operates. In South Sudan and Burundi, we had economic shocks due to political tensions, while Uganda, Kenya and Tanzania were hit by currency depreciation and high inflation while Rwanda was relatively stable,” said Biwott while presenting the results in Nairobi last week. “We see a brighter outlook in terms of the bank’s growth trajectory in the coming years across all the markets,” he added. The group saw its regional subsidiaries in Uganda, Rwanda, Tanzania, Burundi and South Sudan turn in profits, contributing at least 10 per cent of its earnings. The profit growth was supported by an increase in net interest income by 13.5 per cent and growth in gross fees and commissions by 21 per cent attributable to new products and higher transactions volumes. Its total assets were up by 29 per cent due to a 31 per cent rise in loans and advances and investments in government securities which were up by 21 per cent. Net loans and advances constitute the highest proportion of the bank’s assets at 57 per cent. KCB’s assets base now stands at Ksh567 billion (Rwf3.9 trillion), the biggest balance sheet in the East African banking sector. Total liabilities increased by 30 per cent as a result of a sharp growth in deposits, by 26 per cent as customer numbers grew due to new business lines like KCB Mpesa, KCB Insurance Agency, KCB Capital and KCB Sahl Banking, the Islamic finance arm. business@newtimes.co.rw

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KCB Group half year gross profit increases by 13%