KCB Bank recorded a 22% rise in net profit to Sh24 billion in 2018, compared to Sh19.7 billion in 2017, citing reduced operational costs and enhanced income streams. The financial institution lowered bad debt provisions by 50% to Sh2.9 billion following implementation of IFRS9 standards, which prioritize forecasting future defaults over historical data. Staff expenses declined by 11% to Sh35 billion, with employee numbers decreasing from 6,483 to 6,220 over the same period.
The bank's chief finance officer emphasized strategic focus on mobile lending platforms, particularly KCB M-Pesa, which now processes 250,000 daily loan applications after infrastructure upgrades. This system surpassed M-Shwari in loan volume and value within two months of full operation. The platform's expansion includes integration with payment services, insurance, and data analytics capabilities.
KCB maintained steady net interest income at Sh48.8 billion while boosting government loans to Sh120 billion from Sh110 billion. The institution aims for high single-digit income growth through its mobile financial services, which now contribute significantly to non-funded revenue streams.
