KCB posts flat growth in full year profts as interest rate caps continue to bite
KCB Group has reported Sh19.7billion profits after tax in the full year ended December 2017.
The lender said its operating Income grew 3 percent to Sh71.4bn on Net Interest Income, Fees and Commissions.
The profit after tax performance was flat against 2016 and is attributable to a robust loan book growth that offset the impact of lower interest rates following the introduction of the law capping interest rates, a significant growth in fees and commissions resulting from increased usage of our digital channels. It reported Sh19.7billion net profits, almost the same levels, in a similar period in 2016.
Group CEO and MD Joshua Oigara said on Thursday that the lender grew market share while at the same time recorded gains from cost-reduction programmes and improved operational efficiency.
“The business maintained a strong capital position enabling continued focus on our core lending segments in Retail and Corporate banking, deliberate investments in key strategic themes that are focused on delivering top-notch customer service and leveraging on digital channels for delivery of financial solutions resulting in the sustained growth in shareholder value,” Mr Oigara told an investor briefing in Nairobi.
Oigara said 2017 presented one of the most challenging years in the recent past as the macroeconomic environment deteriorated across East Africa, weighing down the financial sector.
This negatively affected the performance of KCB’s subsidiaries outside Kenya, reducing their contribution to the Group’s bottom-line.
“We shrugged off quite a testing business environment across markets. The full effect of the law capping interest rate in Kenya marked by a slow business environment on account of the general election negatively hit businesses and the economy at large,” said KCB Group Chairman Ngeny Biwott.
