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KCB Group PLC after tax profit grew 11 per cent to es 5.8 billion in the first quarter of 2019. The lender attributed the growth on increased transactional activity and higher loan volumes.
The Group’s operational cost also jumped by 2 per cent to Kes9.1billion from Kes8.9billion over a similar period last year, while the bank’s total assets stood at Kes725.7billion from Kes 647.5billion it held last during the first quarter of 2018.
This saw the Group’s balance sheet surge to KShs. 725.7 billion while deposits hit KShs. 552 billion from Kshs. 496 billion. KCB Group capital base remained well within both internal and regulatory limits.
While Core capital as a proportion of its total risk weighted assets closed the period at 18.6% against the Central Bank of Kenya statutory minimum of 10.5%. Total capital to risk-weighted assets stood at 20.0% against a regulatory minimum of 14.5%.
Joshua Oigara, the bank’s Chief executive said while the regulatory and operating business environment remained in flux, the Group’s corporate and retail franchises continued to post impressive returns, helping the lender to grow its market share.
“The performance is as a result of a sustained strategy that is anchored on a simplified customer journey and products that provide solutions to our customers” said Mr. Oigara during the release of the financial performance in Nairobi.
KCB Group is keen on new growth opportunities through M&A and is in the process of transferring part of the assets and liabilities of Imperial Bank In Receivership Limited.
The Group has also made a takeover bid for National Bank of Kenya. Both transactions are targeted for completion in the third quarter of 2019. The two transactions, said the Group CEO, are within the Group’s expansion strategy and gives KCB a stronger edge over its peers.
“We expect some inflationary headwinds in the economy as a result of lower rainfall in Kenya and increasing fuel prices. The Group has capacity to navigate through this and are therefore optimistic we will maintain our positive growth trajectory,” said Mr Oigara.
Financial Fortune is a digital financial news website and print business magazine published in Nairobi by Fortune & Transit Publishers Ltd and covers the financial services sector through news, views and extensive people coverage since 2018.