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.
â€œThe board is pleased to present these impressive results, which confirm that our consolidation agenda is bearing fruits,â€ Muthoka said.
He said the bankâ€™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 bankâ€™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 bankâ€™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.
â€œWe 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,â€ he said.
The KCB board recommended a dividend payout of Ksh3.7b, a 66% increase from that of 2009.
â€œShareholder funds increased by 73% from Ksh22.6b in 2009 to
Ksh39.1b last year, largely due to the proceeds of the bankâ€™s third rights issue and annual profit retention,â€ Oduor-Otieno explained.