KCB Group’s 2018 net profit jumps 22% to Ksh. 24 billion

Joshua Oigara, Group CEO of KCB Group

KCB Group has announced that it has registered a net profit of Ksh. 24 billion for the full year ended December 31 2018. This represents a 22% increase from the previous year’s net profit which stood at Ksh. 21 billion.

The rise in profits was on the back of reduced operating expenses which fell to Ksh. 37 billion from Ksh. 42 billion in 2017. Income on the other hand improved slightly to Ksh. 71.8 billion from Ksh. 71.3 in the previous year. Income was driven from investment in government securities at Ksh. 12 billion and in customer loans and advances at Ksh. 52.7 billion.

Assets of the banking group increased 10% to Ksh. 714.3 billion, driven by net loans and advances, which were up 8% to Ksh. 455.9 billion. Deposits increased to Ksh. 537.5 billion while long term funding stood at Ksh. 22.4 billion from the previous period’s Ksh. 14.9 billion.

During the year, the company launched a new fintech platform that will host all its mobile + fintech products and services. It migrated KCB M-Pesa to the new platform in September 2018. Through KCB M-Pesa, the company disbursed Ksh. 54.4 billion in loans in 2018.

The KCB Group Board has proposed a final dividend of Ksh. 2.50 per share to be presented to shareholders in the Annual General Meeting. If approved, this will bring the total dividend for FY 2018 to Ksh.. 3.50 per share representing an increase of 16.7% from the previous year.

KCB Group is a financial services company and was founded in 1896. It has operations in Kenya, Tanzania, South Sudan, Uganda, Rwanda, Burundi and Ethiopia (Rep). It has a total branch network of 258 branches, 962 ATMs and over 16,600 merchants and agents.

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