Full Year

KCB FY08 profits up 42%

KCB Group announced a 42% increase in its full year 2008 pre-tax profits from Ksh.4.2 billion in 2007 to Ksh.6.01 billion, last year. The good performance was attributed to the bank’s 39% growth in net interest income from Shs. 8.5 billion in 2007 to Shs. 11.8 billion. An increase in business volumes across the bank’s network saw an increase in earning from foreign exchange trading by 94% to Ksh.1.62 billion and fees & commissions by 28% to Ksh.2.9 billion.

Provisions for bad debts rose steeply by 88% to account for the increased risks of greater lending (following the Triton saga). Customer deposits increased by 30% to reach Ksh.126.7 billion by the end of 2008.

The bank’s total assets grew by 59% to Ksh.191.2 billion from Ksh.120.5 billion at the end of 2007. This was mainly due to its increased presence across the East African region. The strong balance sheet is expected to cushion the bank against the effects of a dwindling local and global economy in the short term.

KCB Uganda assets for the year under review grew to Ksh.2.4 billion since it opened a year ago. The banks loan portfolio, reached Ksh.660 million, while deposits grew to Ksh.1.48 billion
The directors proposed final dividend of Ksh.2.2 billion to be paid, which translates to Ksh.1 per share to be ratified by shareholders at its AGM to be held on 29 May, 2009.

S&L, the banks mortgage arm, also contributed a substantial amount of profit with its pre-tax profit growing a massive 68% to stand at Ksh.465 million. This was attributed to an increase in its market share. S&L mortgage lending rose to Ksh.9.3 billion, with the introduction of new mortgage packages like the civil servants package.

S&L recently increased its lending limit from Ksh.100 million to Ksh.250 million and further increased the ratio of mortgage finance by 10%. The mortgage company’s services have been extended to other countries that the KCB Group operates in.

The bank is planning to open at least 50 (30 in Kenya and 20 in the other countries) new branches and install 100 ATMs across the Eastern African region this year. Currently the Group has 185 branches spread across Kenya, Uganda, Tanzania, Southern Sudan and Rwanda.

Management Commentary on the Results

Dividend

The directors have resolved to recommend to members at the thirty eighth Annual General Meeting a first and final dividend for the year 2008 of Ksh.1.00 per share to be paid on or about Friday 29 May, 2009 to shareholders registered at the close of business on Monday 11 May 2009. The register of members will be closed for one day on Tuesday 12 May 2009 for the purpose of processing the dividend.

Annual General Meeting

Notice is hereby given that the thirty eighth Annual General Meeting of the shareholders of Kenya Commercial Bank Limited to be held at the Tsavo Ball Room, Kenyatta international Conference Centre on Friday 8 May, 2009 at 11.00 a.m.

Message from the Directors

The above balance sheet and profit and loss accounts are extracts from the bank’s financial statements which have been audited by Ernst & Young and received an unqualified opinion. A full set of the published financial statements will be available in our offices and can be viewed by any interested persons after approval by members at the Annual General Meeting.

The financial statements were approved by the Board of Directors on 26th February 2009 and were signed on its behalf by:
P W Muthoka – Chairman
M L Oduor-Otieno – Chief Executive
J Ndetto – Director
K D Malakwen - Secretary

Related Links:

• No Related Links