• KCB Group
  • XUGA:KCB KAMPALA/Uganda
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  • About the Company
  • KCB Bank Group is East and Central Africa's oldest and largest commercial bank ,listed on the Nairobi, Dar es Salaam , Uganda and Rwanda Securities Exchange. KCB has regional network of over 236 branches, 6 713 agents and 955 ATMs, in six countries.

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Name Title Officer Since
Mr Moses Dhizaala Chairman 2015
Mr B.S Dhaka Managing Director 2015

KEY STOCK DATA

  • Profits
  • $192.01M
  • P/E Ratio
  • 6.2
  • Return on Equity
  • 24.15%
  • Dividend Yield
  • 0.00%
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Revenue per year in US $
Revenue is the money a company recieves for selling its goods or providing services. The higher the revenue, the better the company is performing.

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Equity Bank has so far issued loans worth Sh57 billion through its platform Equitel launched in May 2014, highlighting Kenya’s growing uptake of mobile lending.

Kenya’s biggest bank by customer numbers said it processed a total of 7.5 million loan requests, with eight out of every 10 loan demands currently being processed and disbursed via Equitel.

The group’s chief executive James Mwangi said the ease of getting credit through mobile phones has seen Equitel average loan size more than double to Sh8,200 in the half-year to June 2017 compared to Sh3,900 in June 2015.

“Increased uptake is due to ease and convenience of access in addition to the quick decision making process. It is self-service,” Mr Mwangi said in an interview.

“The loan recipient doesn’t need security to be eligible for the loan, (and) the loan limits are based on your banking behaviour and credit history.”

Bank-backed lending apps such as M-Shwari, Equitel, M-Co-op Cash, and KCB M-Pesa have greatly transformed how Kenyans access loans, as consumers no longer need to fill lengthy paperwork, provide collateral or undergo vetting by credit officers.

There are also standalone mobile lending apps such as Branch, Tala, Saida and Mombo Mobile, which issue short-term loans via mobile money and charge a processing fee.Facebook-linked Branch mobile app said in July it had disbursed Sh3.6 billion ($35 million) since launching in Kenya in April 2015.

KCB has announced a rare interim dividend of Sh1 per share amounting to a total of Sh3 billion for the half year ended June when its net profit remained flat at Sh10.2 billion.

The lender recorded lower interest income and higher operating expenses but these were offset by a cutback in interest expenses, an increase in non-interest income and lower tax paid in the review period.

KCB said it has strong capital buffers including cash on hand, allowing it to declare the dividend which will be paid on October 31 to shareholders on record as of September 4.

“Following these results, the board of directors considered and approved payment of an interim dividend of Sh1 per share to be paid in the next 90 days. From a capital perspective, the bank has sufficient cover,” KCB said in a statement.

The lender’s dividend payout has risen significantly in the wake of interest rate controls, confirming analysts’ view that some banks will return more capital to shareholders at a time when they have curtailed lending to riskier customers.

KCB paid a dividend of Sh3 per share or Sh9.1 billion for the year ended December, up from Sh2 per share or Sh6.1 billion the year before.

The lender’s interest income dropped 3.9 per cent in the half year ended June to Sh30.3 billion despite a 16.7 per cent expansion of the loan book to Sh406.9 billion, indicating the impact of the narrowed interest rate spreads.KCB raised its purchase of government securities by a quarter to Sh101.7 billion

Full article at allafrica.com

KCB CEO Joshua Oigara KCB posts Sh10.26 billion half-year net profit

Income from fees and commissions went up 14 per cent to Sh7.21 billion

Forex income rose by three per cent to Sh2.65 billion

KCB to convert its Sh2 billion debt in Kenya Airways into equity

The Kenya Commercial Bank Group has weathered the storm in the banking sector to post a net profit of Sh10.26 billion in the first six months of this year.

The results, released on Wednesday, reflect a marginal drop in profitability from the Sh10.28 billion posted last year.

The lender’s half-year profits veered from the traditional net interest income, which only grew by three per cent to Sh23.15 billion from Sh22.5 billion last year.Income from fees and commissions went up 14 per cent to Sh7.21 billion from Sh6.3 billion in 2016 while forex income rose by three per cent to Sh2.65 billion from Sh2.57 billion.“The banking sector continues to undergo numerous challenges and as a bank, our continuous innovation and customer-centric orientation ensures that we remain focused on acting as an enabler for progress to our customers,” commented KCB Group Chief Executive Joshua Oigara.The lender saw non-performing loans rise from Sh32.9 billion in 2016 to Sh33.2 billion in the six months of this year, mainly from money owed by Kenya Airways and Nakumatt, both of which are insolvent and owe the lender a total of Sh31 billion.

Full article at www.standardmedia.co.ke

Nakumatt is in talks with banks to restructure a Sh8 billion loan including lengthening the repayment period to offer relief to the ailing retailer.

The retail chain’s management and the lenders on Tuesday met Trade Principal Secretary Chris Kiptoo to brief him on the talks.

“The meeting was just to brief us about the progress. We are hoping that by next week they will have reached an agreement,” said Dr Kiptoo.

He added that the Government would not be giving the retailer any money but would continue to act as a mediator, not an active party in the talks.

The 10 banks in the list include major players Standard Chartered, Kenya Commercial Bank, Stanbic Bank, NIC bank, Barclays Bank and Diamond Trust Bank.

Others who may suffer losses if the retailer does not survive are Bank of Africa, Oriental, Habib Bank and Guaranty Trust Bank.KCB and DTB, which host the retailer’s Nakumatt Global card, declined to comment on the talks. Solid plan Nakumatt also said they would not like to comment on the restructuring until a solid plan was agreed upon. It, however, admitted on social media that the redemption of shopping loyalty points had been suspended.“The redemption is temporarily unavailable. We will inform you once it resumes,” Nakumatt said on its twitter account in response to a Mr Tsisaga Jumba.The restructuring process came as Central Bank of Kenya Governor Patrick Njoroge fired a warning shot at banks over loans that would go into default.

The demand for and opportunities that exist for loan sharks in Kenya are boundless. This has seen all sorts of lenders crop up in corner shops in estates and major town centres. Their advertisements are nearly as impossible to miss as the waganga ones.

Informal lenders once ruled the short-term lending sector, but in the last couple of years, the market has become skewed. Formal lenders have got involved and shifted the focus to mobile-based lending applications.

The biggest players are either backed by formal lenders, such as CBA (M-Shwari), KCB (KCB M-Pesa), Equity Bank (Equitel) and Co-op Bank (M-Coop Cash), or backed by foreign-based venture capitalists, which is where businesses like Tala, Branch and Saida fall.

Mobile lending

Los Angeles-based Tala is financed by foreign venture capitalists that include Artha Indian, Bam, Collaborative Fund and Data Collective.

Branch International, which is based in Silicon Valley, recently received Sh955 million from Andreesen Horowitz, a venture capital firm that’s also based in Silicon Valley, while Khosla Impact Fund and Formation 8 put in Sh140 million.

American seed accelerator YC Combinator finances Saida, a mobile lending app that was co-founded by Kyale Mwendwa and Kenneth Ngetha.According to a recent Village Capital study, more than 90 per cent of funding for East African start-ups goes to expatriate founders, with most early-stage investors in the region being foreigners themselves.But Kenyans are not known to shy away from the challenge of deep-pocketed investors, and are determined to play in the microloans sector, despite the odds.

The quality of Chase Bank’s books is now a crucial make or break factor as the Central Bank of Kenya tries to play matchmaker between a buyer and the lender’s shareholders.

Weekend Business has learned that some of the bidders have opted to withdraw their bids, while some investors are holding back over the Small and Medium Enterprise bank.

SBM Holdings of Mauritius, which recently concluded the acquisition of Fidelity Commercial Bank, has withdrawn its bid for Chase Bank. “We looked at it and did not see the immediate value,” Moses Harding, advisor to the Board of Directors SBM Holdings, said.

SBM Holdings is among other investors such as Societe Generale of France, KCB Group, I&M Bank, Stanbic Bank and South Africa’s First Rand that recently made a bid to buy Chase Bank and its subsidiary, Rafiki Microfinance Bank.

The Port Louis headquartered bank has, however, said it had evaluated its position in Kenya and decided to withdraw the bid, opting to instead focus on growing Fidelity, which it has rebranded to SBM Kenya.

Mr Harding said while SBM was looking to grow both organically and through acquisitions in Kenya, it would in the initial period focus on building systems in the Kenyan operation.

A law capping interest rates continues to pile pressure on Kenyan banks, with at least three banks posting a drop in earnings in the first quarter of this year.

NIC Bank, Stanbic Bank and Kenya Commercial Bank (KCB) posted 3.9 percent, 9.3 percent and 1.9 percent decline in profit, with the performance attributed to the capping of loan rates.

Kenya introduced the law to cap interest rates in the third quarter of 2016, with the move aimed at deepening access to credit especially among small borrowers.

The rates were capped at 4 percent above the Central Bank Rate which currently stands at 10 percent. Banks, therefore, are currently charging borrowers a maximum of 14 percent, down from between 18 and 28 percent.

The result, however, is that commercial banks are reeling from the effects of the reduced earnings as the law leads to unintended outcomes, including layoffs and slow credit growth.

Financial results of the three banks released last week indicated the squeeze the banks are facing following the implementation of the law. KCB posted a 1.9 decline in core earnings per share to 14.4 billion U.S. dollars from 15 billion dollars.

The Capital Markets Authority (CMA) has expressed concern over the overwhelming dominance of five of the country’s top firms at the bourse.

The regulator in a new report released yesterday said five companies accounted for two-thirds of the total market capitalisation at the Nairobi Securities Exchange (NSE) in the three months to March, exposing the stock market to concentration risk.

The combined market capitalisation of the stocks of Safaricom, East African Breweries, Kenya Commercial Bank (KCB), Equity Bank and British American Tobacco (BAT), the Capital Markets Soundness Report showed, accounted for about 64 per cent of the market capitalisation.

“The top five companies accounted for between 63.7 per cent and 65 per cent of the market capitalisation, which is a heavy level of concentration on a few counters and exposes the market to concentration risks,” said CMA Chief Executive Paul Muthaura during the the report’s launch in Nairobi.

There are 67 companies listed at the NSE. The Capital Markets Soundness Report is a publication on capital markets stability indicators and industry risks.

Kenya Commercial Bank (KCB) Group’s net profit for quarter one of this year has dropped to Sh4.5 billion.

The 1.9 per cent decline from Sh4.6 billion posted in the same period last year came as interest rates, a tough economic environment and hyperinflation in Sudan started taking toll on Kenya’s largest lender by asset base. The drop in profitability came despite a 14 per cent increase in the uptake of loans.

The group’s non-interest income rose 20.3 per cent to Sh5.6 billion, up from Sh4.6 billion in the first quarter of last year, underscoring the growing importance of income derived from alternative revenue channels.

Challenging environment

Last year, the bank saw its net profit grow by 0.5 per cent in its full-year earnings to Sh19.72 billion, the slowest growth in seven years.

Kenya’s top 10 banks registered a 10.8 per cent growth in net earnings to Sh93.81 billion for the financial year ended December 31, 2016.

The growth was despite four of the lenders – Equity Bank, Barclays Bank of Kenya (BBK), Stanbic Bank and NIC Bank – registering a drop in profits after tax.

Kenya Commercial Bank (KCB), Equity Bank and Co-operative Bank remained the top three most profitable lenders respectively and also the only ones with double-digit-billions profits.

However, for the first time in over 10 years, Equity recorded a drop (5.9 per cent) in profits. Despite KCB Group recording a 0.5 per cent growth in profits, the slowest pace in seven years, KCB Bank saw its after-tax profit soar by 19.9 per cent to Sh19.78 billion.

At the same time, Co-operative Bank registered a 24.6 per cent growth in profit to Sh13.05 billion.