KCB group has reported a 14 per cent rise in half year 2016 net profit to sh10.5 billion on the back of higher interest income from customer loans. The bank’s net interest income rose by 16 per cent to sh22.5 billion in the six month period on higher interest rates in the market coupled with KCB’s loan book expanding by sh27 billion to sh347.4 billion.
The lender was however unable to grow its non-funded income, which fell by 7.7 per cent to sh10.4 billion due to lower fees, commissions and foreign exchange trading income.
Non-performing loans also remain a concern for the lender, growing by 36 per cent during the six month period to sh32.9 billion. KCB Group Chief Executive Joshua Oigara says in its regional Uganda, Tanzania and Rwanda were stable in the period but there were concerns in South Sudan and Burundi due political instability.