Kenya’s largest bank by assets, KCB recorded a six percent growth in its pretax profit to 27.1 billion shillings for the first nine months of this year.
The bank saw a 17% increase in non-interest income to just under 21 billion shillings.
During the first nine months of this year, the KCB group’s total assets grew by 12% to 764 billion shillings.
This was achieved on the back of a similar 12% growth in its loan book to 486.4 billion shillings.
The bank’s customer deposits rose by 11.3% to 586.7 billion shillings.
With interest rate caps have been in place during that period, KCB’S interest income from loans and advances grew by a marginal 3.7% to 40 point 5 billion shillings.
The lender’s non-interest income however increased by nearly 17 percent to 20 point 9 billion shillings.
Fees and commissions alone increased by 28% to Kshs. 14.1 billion.
The bank has attributed that growth to a massive increase in loans disbursed through KCB M-Pesa, more than quadrupled from just 23 billion shillings last year to 98 billion shillings as of 30th September 2019.
KCB’S provision for bad loans more than tripled to Kshs 5.8 billion with its non-performing loans to total loan ratio standing at 8.3%; which is 4.3% points below the industry average of 12.6%.
The release of the results come just days after the repeal of interest rate cap law.
KCB Group is optimistic that its acquisition of the National Bank of Kenya will position it for more business and access to deposits on the domestic front.