KCB records 14pc pretax profit

By KBC Reporter

KCB Group made 15.1 billion shillings or 14 per cent in pretax profit during the first six months of this year, representing a 14 percent increase on the 13.2 billion shillings recorded in a similar period last year.

Chief Executive Officer Joshua Oigara attributes the growth in profit to a healthy loan book as well as diversified sources of income driven by its agency, point of sale and mobile banking.

 Oigara says KCB’s role in reviving Chase Bank is now done and dusted highlighted by three thousand new customers since reopening the bank four months ago.

However, non-performing loans continued to increase hitting 32.97 billion shillings as at June this year.

The bank attributes this to government related contracts although the trend is expected to change going forward.

Oigara noted that the revival of Chase Bank has been completed with all operations having resumed. He says Chase bank will most likely get another investor by next month, rubbishing claims that KCB was keen to take over the mid-tier bank.

He added his voice to the raging debate over the Banking Amendment Bill 2015 urging the president not assent it. According to him there are better ways of reducing the cost of lending without having to put a cap on interest rates.

KCB expects to benefit from diversified sources of income driven by its agency, point of sale and mobile banking. The bank did not announce any interim dividend.

 

  

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