KCB Group 2018 earnings up 22% to Sh 24 billion
KCB Group has released impressive results for the year that ended in December 2018. The bank’s after-tax profit rose by 22 per cent to reach Ksh 24 billion. The growth is attributed to consistent revenue growth and efficient management of its expenses.
KCB’s largest revenue source – net interest income – increased by 1 per cent to reach KSh48.8 billion. The lender’s operating costs declined by 10 per cent to KSh37.9 billion mainly supported by a drop in staff costs, rental charges, and loan loss provisions by 11 , 17 and 50 respectively.
The lender’s assets jumped up 10 per cent to KSh714 billion from the previous year’s KSh647 billion. The rise in assets was driven by growth in its l book, deposits with local banks, property and equipment as well as in other assets.
KCB’s loans and advances to customers grew by 8 percent to KSh456 billion in 2018 from Ksh423 billion in 2017. Similarly, its customer deposits rose by 8 percent to hit KSh537.5 billion.
The bank’s directors recommend a final dividend of KSh2.50 per share. If approved by investors, the firm’s total dividend for the financial year 2018 will amount to KSh3.50 per share up from KSh3.00 paid out in 2017.