KCB profits up 13pc to Sh9.2bn on increased lending

Kenya Commercial Bank (KCB) has reported a 13 per cent growth in profits after tax for the half year to June this year riding on increased lending.

The lender announced a Sh9.2 billion net profit for the six months to June compared to Sh8.1 billion in a similar period last year.

The bank’s loan book expanded by 31.3 per cent to S20 billion from Sh244 billion in June last year resulting to 15 per cent increase in interest income.

“We have consistently focused on growing new business lines and strengthening the subsidiaries to drive the business to higher profitability and guarantee its sustainability. This is bearing fruit as seen in the increased earnings,” said KCB’s chief executive Joshua Oigara.

The bank’s deposit base expanded by 26.2 per cent to Sh443 billion over the one year period driven by increase in customer numbers due to new business lines such as its partnership with Safaricom and Islamic finance arm, KCB Sahl.

The management said the number of users of KCB MPesa currently stands at 2.1 million who have borrowed over Sh2 billion in the four months the product has been existent.

READ: KCB M-Pesa service tops one million accounts