KCB to invest Kshs 900m in digital financial services

Written By: Regina Manyara

KCB Group is planning to invest 900 million shillings in digital financial services to boost service delivery as well as customer satisfaction.

The bank whose net profit for the year ending December 2017 remained unchanged at 19.7 billion shillings compared to 2016 saw a rise in customer deposits by 11 percent to 499.5 billion shillings.

Tightening in the market precipitated by the interest cap regime as well as uncertainty during the electioneering period saw KCB group post a stunted growth at Kshs 19.7 billion.

Also Read  CBA begins operations in Rwanda

Despite the unpredictable trends however, the groups  balance sheet continued on an upward trajectory, expanding by 9% from 595.2 billion shillings  to 646.7 billion shillings buoyed by, among others, a strong loan book with net loans and advances up 10% to Ksh 423 billion and investment in government securities up by 7% at Ksh 110 billion.

Personal lending was 35% of the total loan book, while the Real estate took up 17% and manufacturing took up 11.4%. During the period under review foreign exchange income dipped by 15% from 5.5 billion shillings to 4.7 billion attributed to political uncertainty in South Sudan and Burundi.

SMS the word ‘NEWS’ to 22163 to receive all the important breaking news as it happens from KBC on Your Phone

The group intends to maintain its presence in the 7 countries.  Nonperforming loans grew by 8.5 % in 2017 up from 7% the previous year.

Also Read  Meat exporters advised to know standardization codes

Stakeholders are calling for a review of the cap on interest rates in efforts to reduce the cost of risk that the bank pegs at 1.5%. KCB Group has set aside 900 million shillings to invest in digital financial services.

Also Read  Equity Bank posts Kshs. 18.9B net profit

The firm incurred a one off 2 billion shillings expense on account of the reorganization program that saw 316 staff released. The group has proposed a dividend payout of 2 shillings per share.

Tell Us What You Think