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KCB Group half year pretax profit up 14 percent

KCB Group half year pretax profit up 14 percent

Kenya

KCB Group, Kenya’s largest bank by assets, announced on Thursday its first-half pretax profit rose by 14 percent to 15.1 billion shillings ($149.1 million), with most of it coming from its home market.

The bank, which also operates in Rwanda, Burundi, Tanzania, Uganda and South Sudan, said net interest income rose 16 percent to 22.53 billion shillings in the first half.

“We are seeing a consistently growing business that is anchored on improved efficiency, diversified sources of income and a strong loan book growth,” the bank’s CEO Joshua Oigara said in a statement.

We are seeing a consistently growing business that is anchored on improved efficiency, diversified sources of income and a strong loan book growth.

KCB however warned of rising bad debts in the industry and postponed plans to raise cash through a rights issue.

The lender’s non-performing loans jumped by over a third, sending the ratio of bad debts to 8.9 percent from 7.3 percent a year earlier.

“Generally, across the industry, the level of NPLs remain a concern,” KCB Chief Executive Joshua Oigara said in a statement.

The bank said its total assets fell 1 percent to 560 billion shillings, while customer deposits fell 2 percent to 433 billion shillings, both attributed to the devaluation of the South Sudan pound.

“South Sudan remains challenging arising from the uncertainty following fresh fighting and tension between the two main political factions. We however are optimistic that a resolution will be found and the country will continue on its economic expansion journey,” KCB Group Chairman, Ngeny Biwott added.

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