Kenya Commercial Bank (KCB), the country’s largest bank by assets, reported on Thursday a 16% rise in first-half pretax profit to 11.67 billion shillings ($133 million), driven by fees, commissions and foreign exchange trading income.
Bad debts were more than targeted at 8.8% of the portfolio, Chief Executive Joshua Oigara said, but added the outlook had brightened after the Kenyan government had paid contractors following earlier delays.
The full-year target for non-performing loans (NPL) ratio was 6 percent, but Oigara said he hoped the level could be brought lower.
“The internal target is 4.5% for the NPL ratio,” he told an investor briefing.
Fees and commission income rose 13% to 5.67 billion shillings, while income from foreign exchange trading rose 25% to 2.22 billion.
Net interest income rose by 7% to 17.13 billion shillings.
The bank also operates in Tanzania, Rwanda, Uganda, South Sudan and Burundi.
($1 = 87.7500 Kenyan Shillings)
reuters
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