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KCB in 56% profit growth to sh265b
Publish Date: Apr 07, 2011
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By David Ssempijja

KENYA Commercial Bank (KCB) has recorded a 56% rise in pre-tax profits for last year from Ksh6.3b (sh170b) in 2009, to Ksh9.8b (about sh265b).

In a statement issued last week, the chairman of the bank, Peter Muthoka, said the 2010 audited results that reflected a 29% increase in total operating income to Ksh29.6b from Ksh22.9b in the previous year.

Total operating expenses were stable at Ksh18.7b, growing by 18% from Ksh15.9b in 2009.

“The board is pleased to present these impressive results, which confirm that our consolidation agenda is bearing fruits,” Muthoka said.

He said the bank’s good results were anchored on a 36% increase in net interest income from Ksh14.5b in 2009 to Ksh19.6b.

Foreign exchange earnings grew by 68% to Ksh2.8b, up from Ksh1.6b in 2009, while fees and commissions went up by 16%, from Ksh5.9b to Ksh6.8b.

The bank’s balance sheet continued to grow with a further 29% expansion last year to Ksh251.4b, up from Ksh194.8b in 2009.

The bank registered an increase in total deposits of 21% to Ksh197b, from Ksh163b in 2009, while balances with other banks went up by 66% to Ksh11b, from Ksh6.7b realised in the previous year.

The bank chief executive officer, Dr. Martin Oduor-Otieno, hailed the bank’s performance, attributing it to hard work and commitment among employees, and great support from customers and other stakeholders.

KCB covers the region with 218 branches and 400 automated teller machines.

“We experienced a significant increase in our loans and deposits volumes due to our effective business drive and growth in our customer base, which now stands at approximately Ksh1.5m,” he said.
The KCB board recommended a dividend payout of Ksh3.7b, a 66% increase from that of 2009.

“Shareholder funds increased by 73% from Ksh22.6b in 2009 to
Ksh39.1b last year, largely due to the proceeds of the bank’s third rights issue and annual profit retention,” Oduor-Otieno explained.

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