KCB Bank Uganda Ltd recorded an impressive Shs10.2bn net profit in the year ended December 31, 2017, up from Shs5.4bn recorded in 2016. This represents an increase of 88.8%.
This could be attributed to the bank’s general improved performance in various areas. For example, the bank’s use of digital channels saw total expenses fall to Shs76.3bn in 2017, down from Shs82.5bn in 2016.
According to the results released Friday, KCB’s Non-Performing Loans (NPLs) almost remained unchanged at Shs5.19bn in 2017, from 5.1bn in 2016, while bad loans written off reduced to Shs2.3bn from Shs8.97bn.
Speaking about 2017 results, KCB Managing Director Joram Kiarie said: “We worked on delivering excellent customer service and increasing the productivity of our teams. This served us well as reflected in our performance.”
The bank’s loans advanced to customers increased to Shs238.7bn in 2017, from 203.17bn a year earlier.
However, KCB’s customer deposits fell to Shs532.88bn from 539.9bn in 2016, while total assets increased to Shs743bn in 2017, up from 715.7bn in 2016. Shareholders’ Equity increased to Shs104bn in 2017 from Shs88.4bn in 2016.
Talking about strategic opportunities for 2018, Kiarie said: “In 2018, we will focus on building transformative business partnerships around mobile banking, agency banking and other digital channels. We will also focus on operational efficiency to deliver even shareholder value.”
KCB shareholders will be smiling to the bank after a proposed dividend of Shs30.11 per share in 2017, up from Shs15.92.
