KCB Group has posted a net profit of Ksh. 19.2 billion shillings in the first nine months of the year up from Ksh. 18 billion recorded in a similar period last year. This translates to a six percent jump in net profit.
The bank has attributed the growth to a 10 percent increase in its total income as transactions and lending on its digital platforms increased. Cost management initiatives across the lender’s businesses similarly contributed to the improved performance.
“We had a strong quarter and the business witnessed growth across various segments. We made continued strong investments in our capabilities to serve customers better. The international businesses have continued to improve while our digital offerings are witnessing increased activity, giving the business impetus to continue growing,” KCB Group Chief Executive Joshua Oigara said while unveiling the results on Wednesday.
Going forward, we are emphasizing on driving more sustainable growth, excellent customer experience and diversification,” Mr. Oigara added.
The KCB Group CEO similarly insisted that improved performance by its regional subsidiaries in Tanzania, Burundi, Rwanda and South Sudan greatly contributed to the jump in net profit. Despite its Ugandan businesses not recording any profit the combined profit of the subsidiaries increased by 8 percent to Ksh. 1.3 billion.
Mr. Joshua Oigara consequently insisted that that the bank’s acquisition of the National Bank of Kenya would augment the bank’s profit margins moving forward.
KCB Bank is not the only lender that has announced its financial results in the past week. On Tuesday, KCB’s competitor Equity announced a pre-tax profit of Ksh. 24.78 billion shillings in the first nine months of the year up from Ksh. 22.41 billion recorded in a similar period last year. The bank’s net interest income in the period under review rose from Ksh. 29.5 billion to Ksh. 32.29 billion while non-funded income stood at Ksh.22.54 billion up from Ksh.19.8 billion registered in the first nine months of 2018.
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