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KCB Group has on Wednesday announced a 22 percent jump in full-year profit after tax to Sh24 billion from Sh19.7 billion recorded in 2017.
Stable Revenue across Funded and Non-Funded Streams and Cost Management Drives Profitability to New Highs.
Sustained revenue growth and prudent cost management helped raise KCB Group PLC full year 2018 net profit by 22 per cent to a record KShs. 24.0 billion.
This was on the back of solid operating income of KShs. 71.8 billion—largely from interest income, fees and commissions— and lower costs which reduced 1 per cent to KShs. 34.7 billion during the period, said the KCB Group Chief Executive Officer and Managing Director, Mr. Joshua Oigara.
“Our focus on customers, as well as our diversified business model and strong risk discipline, helped us to produce another solid year of financial performance in 2018, even as we navigated the pressures of interest rates cap in Kenya and economic volatility in some of our subsidiaries,” said Oigara.
“The Group’s performance is a reflection and outcome of our growth strategy, maximizing on our strengths, agility into emerging opportunities and the inherent potential to drive value creation for the shareholders and the communities in the markets we operate in,” he said.
On the balance sheet position, the Group maintained its market leadership status as the biggest financial institution in East Africa. Assets surged 10 per cent to KShs. 714.3 billion, driven by net loans and advances, which were up 8 per cent to Kshs.455.9 billion.
The Group Board has proposed a final dividend of KShs. 2.50 per share to be presented to shareholders in the Annual General Meeting. If approved, this will bring the total dividend to KShs. 3.50 per share, an increase of 16.7 percent over the prior year dividend per share.