NAIROBI: Kenya commercial bank has made Sh23.8b in pre-tax profits in 2014. It has continually focused on investment in innovation and technology, tapping alternative channels such at KCB Mtaani agents, merchants, M-Benki, Pepea transit cards, as well as improving operational efficiency to boost growth,” noted CEO Joseph Oigara.
Oigara said the bank’s net interest income increased by Sh2.9 billion while net loans and advances rose by Sh56 billion. The bank’s total operating income rose by 16 per cent to Sh56 billion following a 21 per cent increase in fees and commissions, he reported during an investor’s briefing at a Nairobi hotel on Thursday. Foreign exchange income rose by Sh500 million and customer deposits by Sh71.6 billion. “This year the bank plans to boost its investment in new business lines as well as revive growth in its subsidiaries and expand its foray in the cashlite economy which is billed as the next frontier for growth in the financial services sector,” Oigara said. Group board chairman Ngeny Biwott said one per cent of the profit will be donated to the KCB Foundation. He said the foundation will focus on education, environment, enterprise development, health and humanitarian interventions.
“We are working on scaling up our investment in KCB Capital and Bancassurance and improving efficiency and consolidation, as well as focus more on growing the business in Uganda, Tanzania, Rwanda and South Sudan,” he added. CFC Stanbic Bank, which also posted its 2014 results, reported an 11 per cent increase in net profits equivalent to Sh5.7 billion. The increase was attributed to a 12 per cent rise in interest income, an eight per cent decline in impairment charges and a lower tax charge of 26 per cent. The bank’s non-funded income declined by three per cent to Sh8.4 billion while operating expenses rose by three per cent. Its shareholders will enjoy a higher dividend pegged at Sh5.02 by its board.
