NAIROBI, Kenya, Nov 8 – KCB Group has posted a 4 percent reduction in their third-quarter net profit to Sh14.49 billion compared to Sh15.19 billion recorded same period last year.
Management attributes a 3.6 percent reduction in their Total interest income to Sh46.8 billion as the effect of interest rate cap and an economic slowdown in the political season set in.
KCB Group CEO and MD, Joshua Oigara, said the full effect of the law capping interest rate in a quarter marked by a slow business environment on account of the general election in Kenya – the Group’s largest market – was mitigated by growth in the loan book, prudent management of cost of funds and focus on non branch channels.
KCB Group’s non-interest income currently accounts for 32.9 percent of the total operating income, underscoring the growing importance of income derived from non-branch revenue channels.
The Group expects alternative revenue channels to be the growth driver in the next few years.
“Our business fundamentals remain strong. We remain optimistic and true to our strategy, even in the face of challenges. As the business environment evolves, it is important for the Group to expand its revenue streams to remain competitive. This aggressive focus on non-branch channels leveraged on our Fintech strategy is paying off,” said Oigara.
Forex Income increased by 2.9 percent from Sh3.5billion to Sh3.6billion while Total Assets improved by 14.5 percent from Sh562.3billlion to Shs643.8billion.
Net Loans and Advances up 15.1 percent from Sh364.3billion to Sh 419.5 billion while Net Non-Performing Loans and Advances down 14.7 percent from Sh13.05 billion to Sh11.1billion.
Customer Deposits increased 15.6 percent from Sh429.3billion to Sh496.3billion.