By James Anyanzwa
The Group’s pre-tax profit for the six-month period to June 30 climbed to Sh8.5 billion from Sh5.7 billion in a similar period last year with regional subsidiaries, save Burundi, contributing Sh600 million to the bottom-line.
This is despite a relatively unstable macroeconomic environment characterised by high interest rates across the East African Community (EAC) member states and slowed economic growth, particularly in Kenya and Rwanda during the first half of this year.
Group chairman Musa Ndeto said the remarkable performance had been underpinned by the fundamentals of transformation initiatives, which the bank has implemented over the past 12 months.
“ KCB has completed the roll-out of its transformation agenda in Kenya and in its regional market. These strategic initiatives have contributed to the growth of our profits.
We look forward to a better performance as we close the year,” Ndeto told an investor briefing in Nairobi yesterday.
An un-audited financial statements released yesterday show operating income rose 29 per cent to Sh21.16 billion, from Sh16.4 billion, while total operating expenses surged 16 per cent to Sh11.94 billion from Sh10.29 billion in a similar period.
Net interest income rose 36 per cent to Sh14.31 billion from Sh10.53 billion while foreign exchange income grew 40 per cent to Sh1.9 billion from Sh1.35 billion.
Fees and Commissions increased nine per cent to Sh4.63 billion from Sh4.23 billion in a similar period.
“The growth in income reflects higher earnings on our good book as well as increase in business from retail, corporate and mortgage segments,” said Martin Oduor-Otieno, KCB Group chief executive.