Mobile loans advanced by Kenya Commercial Bank (KCB) stood at Ksh212 billion in the year ended December 2019 from Ksh54 billion in 2018, the latest financial results have shown. The cumulative disbursement via mobile over the past five years totaled to Ksh319 billion.
This comes a time the lender has announced elevated profits for the full year ended December 2019, posting a 5 percent jump in profit after tax to Ksh25.2 billion.
Net earnings increased from Ksh24 billion in 2018 on the back of loan book growth, non-funded income from the digital banking and cost management initiatives across the business.
Total income increased by 17 percent to Ksh84.3 billion while operating expenses grew much slower by 10 percent, resulting in an improved cost to income ratio of 45.7 percent, compared to 48.7 percent the previous year.
Net interest income expanded 15 percent to Ksh56.1 billion from Ksh48.8 billion primarily due to a 17 percent growth in loan book, digital lending and additional interest income from its recent acquisition, the National Bank of Kenya (NBK). Fees and commissions surged 39 percent to
Ksh19.8 billion on diversified income streams.
Non funded income went up 22.6 percent to Ksh28.2 billion from Ksh23.0 billion in 2018.
During the year under review, the number of non-bank transactions increased to 97 percent with a majority of them conducted via mobile devices.
Total assets surged 26 percent to Ksh899 billion from Ksh714 billion in 2018. The key drivers for this growth were the loan book growth of 17 percent to Ksh535.4 billion.
Customer deposits grew by 28 percent to Ksh686.6 billion, attributable to the acquisition of NBK.
The stock of nonperforming loans (NPLs) increased to Ksh63.4 billion (Ksh38.2 billion excluding NBK) up from Ksh32.7 billion in 2018, following consolidation with NBK.
Shareholders’ equity was up 14.1 percent from Ksh113.7 billion to Ksh129.7 billion.
KCB distributed part of the profit by way of an interim dividend of Ksh1.0 per share in the course of 2019. The KCB Group Board has proposed a final dividend of Ksh2.5 per share to be presented to shareholders in the Annual General Meeting to be held in May this year.