This archive report was first published on 15 August 2019.
On August 15, 2019, KCB Group announced a 5% growth in after-tax profit to KShs. 12.7 billion for the first half of 2019, compared to KShs. 12.1 billion reported in the same period last year.
The growth was attributed to an increase in the loan book and mobile channel activity, with channel transactions outside the branch rising to 96% of total transactions, up from 87% in 2018.
"We had a strong second quarter and witnessed continued growth across our business segments," said Group CEO and MD Joshua Oigara. "The investment in technology generated positive returns and further helped drive efficiency and deepen access to affordable financial services in all markets," he added.
The firm's net interest income increased by 5% to KShs. 25.4 billion, with a 14% expansion of the loan book and a marginal 2% increase in interest expense.
Fees and commissions rose by 31% to KShs. 8.9 billion, driven by significant growth in digital channels, particularly KCB M-PESA, which saw a value of loans disbursed increase from KShs. 14.9 billion in H1 2018 to KShs. 66.7 billion in H1 2019.
Overall, total operating income was up 8% to KShs. 38.6 billion, with strong non-funded income growing 15% to KShs. 13.1 billion.
