Nairobi — The Kenya Commercial Bank (KCB) has recorded a 13.6 percent increase in net profit in the first half of 2014, posting Sh8.17 billion from Sh7.2 billion recorded in the same period of 2013.
Total assets went up by 19 percent from Sh370.91 billion to Sh439.70 billion, while net loans and advances went up by 14 percent from Sh214.09 billion to Sh244.01 billion.
KCB Chief Executive Officer (CEO) Joshua Oigara says the performance was driven by improved operational efficiency, investment in alternative channels, increased lending and business growth.
Oigara said that customer deposits went Up 22 percent from Sh287.7 billion to Sh351.6 billion while Shareholder Funds went Up 16 percent from Sh55.83 billion to Sh64.86 billion.
"Net Interest Income went Up 7 percent from Sh16.05 billion to Sh17.13 billion Foreign exchange income also rose by 25 percent from Sh1.78 billion to Sh2.22 billion as fees and commissions went up 13 percent from Sh5.03 billion to Sh5.67 billion," he announced.
The international business contributed 7.3 percent to the Group profits as the group plans to roll out mobile banking and agency services to the subsidiaries in the next quarter.
The group also plans to open two additional branches in Juba in the month of August as business starts to pick up in the country.
"We have also witnessed growth in our Bancassurance business and it continues to exhibit potential that is progressive, the Bancassurance profits grew by 482.7 percent from Sh21.4 million during the second quarter of 2013 to Sh124.9 million during the same period in 2014," he said.
Total assets for Bancassurance grew by 284 percent from Sh68.4 million to Sh263.2 million.
Fees and commissions stand at Sh102.6 million in the second quarter of 2014 against fees and commissions of Sh34.1 million in the same period in 2013.
The group's expenses grew by 16 percent from Sh11.69 billion in June 2013 to Sh13.62 billion in June 2014 attributed to operating expenses relating to the ongoing upgrade in IT, and managing the additional business that is coming into the bank.
The Bank's investment in government securities rose by 6 percent from Sh88.21 billion in June 2013 to Sh93.33 billion in June 2014.
He says the group plans to enter into new countries that include Zambia, Mozambique and Somalia between 2015 and 2017.
On Wednesday, Equity Bank recorded a 21 percent net profit growth in the first half of 2014 to Sh7.6 billion compared to Sh6.3 billion recorded in the similar period of 2013.
The bank grew its total assets by 16 percent to Sh303 billion up from Sh262 billion recorded in June 2013 while the loan book grew by 24 percent in the period under review to Sh186.51 billion from Sh150.48 billion recorded in 2013.