Growth in its loan book, increased mobile channel activity and sustained cost saving measures are the key factors that contributed to drive KCB Group’s performance in the first half of the year, leading the bank to post an after tax profit to Kshs 12.7 billion for the first half of 2019 ending June, indicating a 5% growth.
According to the bank, the improvement in earnings up from the Kshs 12.1 billion reported in the same period
last year is attributable to growth in loan book and increased mobile channel activity.
Channel transactions done outside the branch increased to 96% of total transactions, up from 87% in 2018 driven by mobile channel.
“We had a strong second quarter and witnessed continued growth across our businesses segments. The investment in technology generated positive return and further helped drive efficiency and deepen access to affordable
financial services in all markets,” said KCB Group CEO and MD Joshua Oigara.
The group’s net interest income increased by 5% to Kshs. 25.4 billion, attributable to a 14% expansion of the loan book and a marginal 2% increase in the interest expense. Fees and commissions increased by 31% to Kshs 8.9 billion as revenues from digital channels in particular KCB M-PESA grew significantly driven by the new platform launched late last year. The value of loans disbursed via the service during the period of review increased from Kshs 14.9 billion in the first half of 2018 to Kshs 66.7 billion in the first half of 2019.
KCB Group has the largest branch network in the region with 258 outlets, 979 ATMs and over 18,800 merchants and agents offering banking services across East Africa. This is complemented by mobile banking and internet banking platforms with a 24hour contact center. The Bank also has a network of correspondent relationships totaling over 200 banks globally.