This archive report was first published on 15 August 2019.
On August 15, 2019, KCB Group announced a 5pc increase in its half-year profit to Sh12.7 billion.
The results were boosted by a 5pc rise in interest income to Sh25.4 billion and a 15pc growth in non-funded income to Sh13.2 billion.
However, the bank's bottom line was impacted by a 266pc jump in loan loss provision from Sh0.8 billion to Sh3 billion, according to Group Chief Finance Officer Lawrence Kimathi.
Kimathi attributed the increase to the absence of a one-off benefit from passing non-performing loans through the balance sheet, as was the case last year during the transition to a new accounting standard.
Despite this, KCB's growth in interest income was driven by a 13.8pc increase in its loan book, pushing up interest on loans and advances to customers to Sh479 billion from Sh421 billion.
Retail loans grew at 12pc, while corporate and mortgage loans grew at 10pc and 5pc respectively.
With the Central Bank of Kenya keeping benchmark lending rates at 9pc, no commercial loan was priced higher than 13pc during the six-month period.
Following the results, the board approved the payment of an interim dividend of Sh1.00 per share, which will be paid in November 2019.
