Mwaniki Wahome
23 October 2008
Nairobi — KCB has posted a 64 per cent improvement in its pre-tax profit for the first nine months of the year.
The bank's profits, according to unaudited accounts released by CEO Martin Odour-Otieno show that profit before tax reached Sh5.2 billion from Sh3.2 billion realised in the same period last year.
Healthy ratios
"We are pleased to announce a steady improvement in our trading results that generally reflects the momentum we have witnessed in the business over the past couple of years," he said.
The CEO said the bank enjoyed healthy prudential ratios following a successful second rights issue concluded in August with core capital to total deposit liabilities at 14.6 per cent against the Central Bank of Kenya's minimum of 8 per cent.
He said the foreign exchange income doubled to Sh1.1 billion from Sh555 million on the back of increased activities at the financial markets.
The funded and non-funded incomes also boosted the growth in the bank's profits.
Mr Oduor-Otieno said the bank was well grounded to withstand effects of the global financial crisis with a strong balance sheet, quality of assets, well diversified deposit base and strong liquidity.
Total operating income stands at Sh13.8 billion from Sh10.5 billion in same period last year, representing 33 per cent increase, against total operating expenses of Sh8.9 billion up from Sh6.6 billion.
The bank's balance sheet stands at Sh183 billion, an improvement of 67 per cent from Sh110 billion in September 2007.
Net loans and advances grew by 53 per cent to stand at Sh88 billion from Sh 57 billion in the same period last year, which Mr Oduor-Otieno attributed to growth in business, increased marketing and improved relationship management in both retail and corporate segments.
The bank realised increase in deposits to Sh110.6 billion compared to Sh87.7 billion in the same time last year. Mr Oduor-Otieno said there was a marked increase in current account balances to Sh62.9 billion and fixed deposits to Sh18 billion.
Expanding network
He said the bank's performing loan book was strong at Sh86.3 billion while the non-performing loan portfolio remained below Sh2 billion.
The bank will open a branch in Rwanda next week, and is expanding its network in southern Sudan by nine branches, and another seven in Tanzania, while an additional eight branches are line up for Uganda.
"The performance of all subsidiaries is within expectation," said Mr Oduor-Otieno.
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