KCB Group posts 14% growth in Q1 net earnings
Kenya Commercial Bank has released its financial results for the three month period ended March 2018. Overall, the performance was impressive with net profit for the period rising by 14.1% to Sh 5.2 Billion while profit before tax rose by 13.5% to Sh 7.5 Billion.
During the period, total interest income grew by 11% to Sh 15.7 Billion while interest expense rose by 12.6% to Sh 4.2 Billion. Net interest income also increased by a decent 10.5% to Sh 11.4 Billion. Non-interest income was unchanged at Sh 5.5 Billion.
Net loans and advances for the period grew by 5.8% to Sh 418.6 Billion while gross Non Performing loans grew by 36.2% to Sh 43.8 Billion.
Investment in government securities rose 5.8% to Sh 112.1 Billion. Customer deposits grew 8.7% to Sh 496.4 Billion despite slower private sector credit growth (1.8% in January 2018). Borrowed funds rose 51% quarter on quarter to Sh 22.5B on as interest expense rose 13% to Sh 4.2 Billion.
The bank said branch transactions and lending had declined by 11%, 26% and 3% respectively. 87% of its transactions are now conducted outside the bank branches. Mobile loan disbursement grew 64% to Sh 9.2 Billion.