[2008-08-01]  KCB profits increase by 69 per cent
Kenya Commercial Bank (KCB) has recorded 69 per cent increase in profits before tax during the first half of this year.
Group Chief Executive Martin Oduor-Otieno said the earnings increased to Sh3.5 billion compared to Sh2.07 billion last year.
Total operating income increased by 34 per cent from Sh6.7 billion to Sh8.95 billion driven by foreign exchange earnings that grew by Sh697 million over the period.
"We are very excited with this performance, which reflects consistent growth and ongoing momentum in our business," said Mr Otieno. He said net interest income increased by 37 per cent from Sh4 billion in June last year to Sh5.5 billion. Fees and commissions went up by 13 per cent to stand at Sh2.5 billion from the previous period’s Sh2.2 billion.
operating expenses
Even though the profits were on a high, KCB saw its total operating expenses increase by 39 per cent to Sh5.7 billion from the previous year’s Sh4.1 billion, while net provisions for the non-performing loans dropped by 147 per cent (Sh732 million) due to significant recovery efforts.
"We continue to receive increased business requiring us to invest a lot more in people and infrastructure to meet demand." The period saw an increase in net loans and advances by 28 per cent to Sh70.4 billion


Source: Standard