Kenya Commercial Bank KCB, has reported a 50% growth in profits after tax in the first half of the year helped by a growth in interest income.
KCB on Thursday said its profits after tax rose to KSh6 billion in the six months to June from the KSh4 billion it reported in a similar period in 2011.
“We attribute the performance to growth to in our revenues and prudent cost management,” KCB Chief Executive Martin Oduor said in an interview at the sidelines of an investor briefing.
Net interest income grew 36% to KSh14.3 billion from KSh10.5 billion earned in the previous year.
KCB’s total operating expenses grew by 16% to KSh11.9 billion compared to KSh10.2 reported in the previous year.
KCB’s balance sheet grew 25% to KSh349.3billion while its total shareholder funds now stands at KSh46.4 billion from KSh38.4billion in the previous period.
However KCB increased its provisions of bad debts by 72% to KSh1.4billion a signal that it is preparing for higher risk of defaults on loans it booked during the from the turbulent macroeconomic conditions in the recent months.
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