KCB Group Wednesday reported a 16 per cent increase in profit after tax for the year ending December 2015 on higher net interest income, non-funded income and operational efficiencies.
The lender said its profit after tax hit Sh19.6 billion during the period, up from Sh16.8 billion in 2014 with the contribution from KCB’s international business rising to 12.8 per cent up from 8.3 per cent the previous year.
“We have continually made deliberate investments and focus on building a business around diversification, prudent cost management, a robust IT system while remaining synonymous with excellence in customer experience at all service points across the group,” said KCB Group CEO Joshua Oigara while announcing the result.
FEES AND COMMISSIONS
During the period the lenders’ net loans and advances rose by 22 per cent from Sh284 billion to Sh346 billion. Its net interest income rose by 9 per cent to Sh39.2 billion due to a sharp growth in the asset book while fees and commissions jumped 11 per cent, to Sh14.16 billion, attributable to increased transactions volumes and new products.
KCB has in the last one year set its sights on micro lending, through a strategic partnership and product innovation with Safaricom.
Mr Oigara said latest bank statistics show they have under the product disbursed over Sh7 billion in loans to over 5 million KCB-M-pesa customers.
Mr Oigara said the group surpassed the 10 million customer mark, marking a major milestone, as it set up a Representative Office in Ethiopia to deepen the regional presence.
KCB has operations in Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan and Ethiopia (representative office).
KCB is eying entry into Somalia, Mozambique and the Democratic Republic of Congo among other countries.