KCB Group has finally lifted the lid for its financials for the past nine months ending September 2019. The lender posted a 6 percent jump profit after tax to KES 19.2 billion.
KCB reports that net earnings rose from KES 18 billion in the same period in the previous year (2018), and cites cost management initiatives across all businesses for the impressive results.
Total income grew by 10 percent from KES 54.2 billion to KES 59.7 billion. Non-funded income was up by 16.9 percent thanks to digitization programs, mostly marked by KCB M-PESA that offers savings and loans to M-PESA customers.
Specifically, Kenyans borrowed KES 98 billion from the platform in the period under assessment. Last year, KCB M-PESA disbursed KES 23 billion in loans.
The product has since been adjusted in terms of interest rate. Users are furnishing their KCB M-PESA loans at increased interest rates than it was a couple of months ago. On the other hand, Fuliza, which KCB co-owns with NCBA and Safaricom, will likely see its interest rate cut following a hint from the carrier’s CEO Michael Joseph.
“We had a strong quarter, and the business witnessed growth across various segments. We made continued strong investments in our capabilities to serve customers better. The international businesses have continued to improve while our digital offerings are witnessing increased activity, giving the business impetus to continue growing,” said Joshua Oigara, KCB CEO. “Going forward, we are emphasizing driving more sustainable growth, excellent customer experience, and diversification.”
KCB further reported a jump in net interest income by 7 percent to KES 38.7 billion from KES 36.3 billion.
KCB acquired the National Bank of Kenya (NBK), which it expects will bolster its position in the local banking sector.