KCB posts Sh12.1 billion net profit in six months
What you need to know:
- This is a 17.48 per cent net rise from the previous period.
- Loan book grew 3.57pc to Sh421.4 billion, raising total interest income 6.1 per cent to Sh32.2 billion.
KCB also benefited from lower operating expenses which dropped 6.81 per cent to Sh18.5 billion.
KCB Group #ticker:KCB posted a 17.48 per cent net profit rise in the half year ended June boosted by a drop in cost of bad loans and increased interest income.
Kenya’s biggest bank said it had made Sh12.1 billion net profit in the review period compared to Sh10.3 billion a year earlier, riding on a 3.57 per cent loan book growth to Sh421.4 billion that raised total interest income 6.1 per cent to Sh32.2 billion.
KCB benefited from lower loan loss provision of Sh827.6 million, a 58.8 per cent drop from Sh2 billion in the same period last year despite a 13.17 per cent surge in gross defaults to Sh37.6 billion.
Non-interest income
Non-interest income remained flat at Sh11.47 billion in the period from Sh11.48 billion a year earlier.
KCB also benefited from lower operating expenses which dropped 6.81 per cent to Sh18.5 billion.
KCB chief executive Joshua Oigara, gave a positive guidance for the full year, which he pegged on expected improvement in economic conditions.
“We are on track to delivering on our 2018 targets on the six strategic initiatives,” said Mr Oigara.
“We are seeing a more robust business that is responsive to our model of boosting non-funded activity, improving our financial strength and prudent management to consistently deliver stronger shareholder value.”
