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KCB announces profit increase

By Vision Reporter

Added 1st November 2009 03:00 AM

THE Kenya Commercial Bank Group last week announced a Ksh5.3b profit for its 2009 third quarter trading results.

THE Kenya Commercial Bank Group last week announced a Ksh5.3b profit for its 2009 third quarter trading results.

By Vision Reporter

THE Kenya Commercial Bank Group last week announced a Ksh5.3b profit for its 2009 third quarter trading results.

Peter Muthoka, the group chairman, said the bank’s operating profit, before provisions and tax, increased to Ksh5.90b, up from Ksh4.99b during the same period in 2008.

“This is a good performance in spite of the economic hardships experienced across the world. It shows the business’s ability to thrive in difficult circumstances,” he said.

The bank’s performance was anchored on a significant growth in operating income which went up by 23% to Ksh17.1b from Ksh13.9b as at September, 2008.

Martin Oduor-Otieno, the group chief executive, said the growth in total operating income was driven by an impressive increase in interest revenues and foreign exchange business.
“Our net interest income went up by 36% to Ksh10.9b due to growth in our loans and advances in both corporate and retail segments,” he said.

Customer deposits were up from Ksh110.99b during the third quarter of 2008 to Ksh150.9b this year.
Foreign exchange income also grew by 37% to Ksh1.5b, owing to market volatility and increased volumes, Oduor-Otieno added.

Shareholders’ equity went up by 7% from Ksh20.8b in the last period.
On the bank’s balance sheet, total assets remained stable at Ksh184.7b although net loans and advances increased to Ksh114.3b from Ksh88.1b in September 2008.

The group chief executive expressed confidence in the bank’s profit outlook for 2009 adding that the bank will use its wide branch network, variety of products and services to grow the business.
The bank is East Africa’s largest commercial bank with 203 branches spread across the region.

KCB announces profit increase

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