KCB Group Limited announces a 16% increase in profit after tax for the 12 months ending December 2015 on the back of higher net interest income, non-funded income and operational efficiencies.
Post Tax earnings hit KShshs.19.6 billion during the period, up from KShs 16.8 billion in 2014 with the contribution from KCB’s international business rising to 12.8% up from 8.3% the previous year.
Currently, banks are facing tough competition from other financial institutions that come up with friendly rates, mostly when it comes to loans. Besides competition, corruption is another factor that’s killing financial institutions. A case study is Imperial Bank and shadowed leadership issues in National Bank of Kenya.
Equity bank on the other end is investing everywhere and people love the bank probably because it’s in every corner of the country. The bank has opened doors for students and giving Telecommunication companies a tight competition with their Equitel line.
The East African region is growing at a very fast rate and banks need to up their game.
KCB Group Chairman Ngeny Biwott said.”Overall, the business navigated through difficult times especially in Kenya during the second half of the year as well as Burundi and South Sudan. Our multiple market presence helped balance off the pressures and push up the Group’s earnings. The robust business model we have adopted for the International Business is gaining momentum and underpins our regional expansion strategy. We will invest more on initiatives that support deepening financial inclusion across East Africa region and beyond to guarantee a more sustainable business into the future.”
The financials show that net interest income rose by 9% to KShs 39.2 Billion due to a sharp growth in the asset book while fees and commissions jumped11%, to KShs14.16 Billion, attributable to increased transactions volumes and new products rolled out to meet customer needs.
“We have continually made deliberate investments and focus on building a business around diversification, prudent cost management, a robust IT system while remaining synonymous with excellence in customer experience at all service points across the Group,” said KCB Group CEO Joshua Oigara while announcing the result.
“Going into the future, we believe that the pace and trajectory of our growth as a business will largely be determined by our efforts in improving operational efficiencies and deepening digital payments while exploiting our network spread to enhance service excellence,” said Mr Oigara.