KCB reports 16 pct rise in first half profit
31 July 2014, 09:31
Nairobi - Kenya Commercial Bank (KCB) , the country's largest bank by assets, reported on Thursday a 16 percent rise in first-half pretax profit to 11.67 billion shillings ($133 million), driven by fees, commissions and foreign exchange trading income.
Bad debts were more than targeted at 8.8 percent of the portfolio, Chief Executive Joshua Oigara said, but added the outlook had brightened after the Kenyan government had paid contractors following earlier delays.
The full-year target for non-performing loans (NPL) ratio was 6 percent, but Oigara said he hoped the level could be brought lower. "The internal target is 4.5 percent for the NPL ratio," he told an investor briefing.
Fees and commission income rose 13 percent to 5.67 billion shillings, while income from foreign exchange trading rose 25 percent to 2.22 billion. Net interest income rose by 7 percent to 17.13 billion shillings.
The bank also operates in Tanzania, Rwanda, Uganda, South Sudan and Burundi.