KCB Group PLC reported a 22% increase in full-year 2018 net profit to a record Sh24 billion, citing sustained revenue growth and disciplined cost control as key factors. The figure surpassed the Sh19.7 billion recorded in 2017, with operating income reaching Sh71.8 billion from interest, fees, and commissions.
CEO Joshua Oigara attributed the results to customer-centric strategies, a diversified business model, and risk management practices. He noted the challenges of Kenya's interest rate caps and economic fluctuations in subsidiaries but emphasized the group's resilience.
The board proposed a Sh2.50 per-share final dividend, raising the total to Sh3.50—up 16.7% from 2017. This follows a digital transformation initiative that included launching a fintech platform, which enabled 84% growth in mobile loan disbursements to Sh54.4 billion.
Asset growth totaled Sh714.3 billion by year-end, with loans and advances rising 8% to Sh455.9 billion. Deposit levels reached Sh537.5 billion, while long-term funding increased to Sh22.4 billion. The group maintained capital ratios above regulatory requirements, with core capital at 18.1% of risk-weighted assets.
Oigara outlined 2019 expansion plans focusing on personal finance, agriculture, healthcare, and housing. He expressed confidence in East Africa's economic recovery and the banking sector's growth trajectory. The group also reiterated commitments to sustainable development and responsible banking practices.
