Net interest income for the group was up 7.8 per cent to Sh33 billion from Sh30.6 billion in the previous year, while foreign exchange income was flat at Sh3.7 billion. Chief executive
The board has proposed to pay a dividend of Sh2 per share,
Its non-performing loans were up to 8.1 per cent in the fourth quarter compared to a 6.7 per cent rise in a corresponding period in the previous year. Net NPLs exposure rose by 173 per cent to Sh3.66 billion from Sh1.3 billion in 2012.
"NPLs were higher due to a delay in payments from our customers contracted by government particularly in construction and the revised CBK guidelines require six months before customers in arrears can be reviewed," Oigara said.
The group also reduced its long term debt by 13 per cent to Sh7.72 billion from Sh8.92 billion and is betting more on short-term customer deposits. "Long term debt is not necessarily expensive and we intend to bring on board about
Group chairman Ng'eny Biwott said the bank is eyeing the whole of eastern
"We are eyeing
Oigara said KCB will optimise alternative channels such as agency banking and mobile and internet banking to grow customer numbers and raise deposits. It will also target a bigger chunk of cash-less payment services.
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