KCB Group first quarter net profit rises 12pc to Sh4.3bn

What you need to know:

KCB has seen its net profit for the first three months of the year grow 12 per cent to Sh4.3 billion.
This performance was brought about by an 11 per cent jump in interest income to Sh9.3 billion.

KCB Group has seen its net profit for the first three months of the year grow 12 per cent to Sh4.3 billion on the back of higher interest income, fees and commissions arising from new business lines.

The company says it expects growth in services like insurance, Islamic banking and mobile money transfer services to further boost its income.

The lender, the third top-tier bank to announce its quarter one results after Cooperative Bank and Equity, says its total operating income stood at Sh13.9 billion from Sh13.1 billion recorded during a similar period last year.

Mr Joshua Oigara, the bank’s chief executive officer, said this performance was brought about by an 11 per cent jump in interest income from Sh8.3 billion last year to Sh9.3 billion.

“The earnings are as a result of a continued focus on the business to drive up non-funded income,” said Mr Oigara.

“Fees and commissions grew by 19 per cent to Sh3.9 billion as a result of increased transaction volumes and new products we have rolled out.”

KCB Group’s total assets increased 24 per cent to Sh510.3 billion while customer deposits jumped by 27 per cent from to Sh397.1 billion.

Equity Group posted a 10.7 per cent net profit growth in the first quarter to Sh4.2 billion, while Co-operative Bank posted a 29 per cent growth in net earnings for the same period raking in Sh3.17 billion in net profit.

A mobile loan service, which KCB runs in partnership with telecoms firm Safaricom, had already attracted 1 million customers since launching in March, the bank said.