Kenya Commercial Bank (KCB) has reported a pretax profit of Sh 5.7 billion for the first half of 2011, a 36 percent increase over the same period in 2010.
The bank attributed its good performance to growth in income from various business segments, implementation of cost management initiatives, and growth in market share as well as improved returns from regional subsidiaries.
Announcing the results,KCB Group Chief Executive, Dr. Martin Oduor-Otieno said pre-tax profits returned Sh 5.7 billion which was made up of net interest income that grew by 20 percent to Sh 10.5 billion while fees and commissions stood at Sh 4.2billion, a 41 percent increase over the same period last year.
The Group’s deposits grew by 12 percent to reach Sh 216 billion from Sh 192 billion thanks to the Bank’s common technology platform which aims at facilitating regional trade, financial intermediation and convenience of customers.
“KCB is at the forefront in delivering innovative products and services with recent launches of partnerships that are not only aimed at enhancing customer access to our products and services but also creating value for our stakeholders,” Oduor said.
The bank’s balance sheet increased by 24 percent from Sh 226 billion 2010 to Sh 280 billion with a total shareholder equity at Sh 38.4 billion up from Sh 23.4billion in June 2010 as a result of the additional funds from the rights issue in August 2010 and growth in profitability.
The Group’s deposits grew by 12 percent to reach sh 216 billion from Sh 192 billion thanks to the Bank’s common technology platform which aims at facilitating regional trade, financial intermediation and convenience of customers.
The Bank’s total operating income increased by 25 percent to stand at Sh 16.4 billion while the total operating expenses were 19 percent higher compared to the first half year of 2010.
Dr Oduor noted that KCB recorded significant growth in retail lending, mortgage and corporate segments which realized a 35 percent growth in net loans and advances from Sh 130 billion to Sh 175 billion.
Dr. Oduor added that the transformation agenda has now been rolled out across the Group and as result, the bank launched an agent banking partnership with Postal Corporation of Kenya (PCK) in selected postal offices to complement accessibility of banking services and convenience – especially in remote areas.
KCB is the region’s largest bank in terms of total assets at Sh 280 billion, total number of branches at 222 spread over five countries, namely; Kenya (169), Tanzania (11), Southern Sudan (19), Uganda (14) and Rwanda (9) and most capitalized at Sh 38.4 billion. This is complemented by over 920 ATMs across the region that offer 24 hour quick serve services.
The bank expects greater returns after the completion of a systems optimization exercise in all the five countries thus its customers are expected to be served hitch free, across all its branches and ATM locations, subject only to country specific regulatory requirements.
The CEO that the move sets the pace for KCB to expand its services gear itself towards convenient banking for new customers as well as its existing 1.7 million users.