KCB half-year net profit up 13pc on higher interest income
What you need to know:
Uganda, Kenya and Tanzania were hit by currency depreciation and high inflation while Rwanda was relatively stable,” KCB’s chairman, Mr Ngeny Biwott said.
The lender’s KCB M-Pesa platform has about 2.1 million users and has disbursed over Sh2 billion in loans in the past four months. This translates to about Sh130 million in loans disbursed on a weekly basis.
Increased lending and growing profitability of international business pushed up Kenya Commercial Bank’s net profit by 13 per cent to Sh9.2 billion in the first half of 2015 from Sh8.17 per cent in a similar period last year.
The bank’s international business units in Uganda, Rwanda, Tanzania, Burundi and South Sudan turned around and contributed at least 10 per cent of the lender’s earnings in the period.
The bank said it shrugged off a relatively tough business environment 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.
Uganda, Kenya and Tanzania were hit by currency depreciation and high inflation while Rwanda was relatively stable,” KCB’s chairman, Mr Ngeny Biwott said.
INTEREST INCOME
In the period under review, net interest income grew by 13.5 per cent to Sh19 billion from Sh17 billion, while fees and commissions rose by 21 per cent to Sh6.8 billion from Sh5.7 billion.
Net loans and advances grew by 31 per cent to Sh321 billion from Sh244 billion. Customer deposits on the other hand grew by 26 per cent to Sh443 billion from Sh352 billion.
The lender’s KCB M-Pesa platform has about 2.1 million users and has disbursed over Sh2 billion in loans in the past four months. This translates to about Sh130 million in loans disbursed on a weekly basis.
