KCB profit up 22pc to Sh24b on diversified business and cost management
NAIROBI, Kenya, KCB Group has posted a profit of Sh24 billion for the full year 2018, a 22 percent increase from the previous year, propelled by increased revenue across funded and non-funded streams and cost management initiatives.
Interest income, fees and commissions contributed the lion’s share of the bank’s Sh71.8 billion operating income.
KCB Group Chief Executive Joshua Oigara says a diversified business model and a strong risk discipline helped the financial services company navigate the pressures of interest rates cap in Kenya and economic volatility in some of our subsidiaries.
“The Group’s performance is a reflection and outcome of our growth strategy, maximizing on our strengths, agility into emerging opportunities and the inherent potential to drive value creation for the shareholders and the communities in the markets we operate in,” said Oigara.
Non-performing loans ratio was down by 150bps year on year to 6.9 percent as the loan book grew 7.9 percent compared to the previous year.
The KCB Group Board has proposed a final dividend of Sh2.50 per share to be presented to shareholders in the Annual General Meeting.
If approved, this will bring the total dividend to KShs. 3.50 per share, an increase of 16.7% over prior year dividend per share.