KCB records 5pc net profit jump to Sh12.1bn

IMAGE 1C e1565862041818 - KCB records 5pc net profit jump to Sh12.1bn
The Board of Directors approved a payment of an interim dividend of Sh1.00 per share/COURTESY.

NAIROBI, Kenya, Aug 15- Kenya Commercial Bank (KCB) has registered Sh12.7 billion in profit after tax in 2019 half year result, an upward improvement of 5 per cent from Sh12.1 billion registered during the same period last year.

KCB Group Chief Finance Officer Lawrence Kimathi says the results were driven by growth in loan book and increased mobile channel activity which rose by 446 percent.

Net interest income reached Sh25.4 billion while non-funded income grew by 15 percent to Sh13.2 billion. Growth in interest income was enhanced by 13.8 percent growth in loan book that increased the interest on loans to customers at Sh479 billion from Sh421 billion.

Retail loans grew at 12 percent while corporate and mortgage grew at 10 percent and 5 percent respectively.

The bank’s loan book surged 14 percent to Sh478.7 billion, driven by the retail and corporate banking customer segment.

“The bottom line was impacted by 266 percent jump in loan loss provision from Sh0.8 billion to Sh3 billion. This is something we are looking at keenly to deliver robust second-half performance,” Kimathi said.

The bank’s board has approved payment of an interim dividend of Sh1.00 per share which will be paid to shareholders on November 2019.

National Bank Takeover 

Chief Executive Joshua Oigara said the acquisition of the National Bank of Kenya is on course and should be finalized soon.

“We are still clearing some matters in parliament and by 30th August we will have the full acquisition of NBK,” he said.

This comes a few days after the bank asked holders of National Bank’s shares to swap them for KCB shares.

The shares swap offer closes on Friday 30th August.

Author: worldwidenewscast

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