trending Market Intelligence /marketintelligence/en/news-insights/trending/QvnJZYIwG7J19nceApU91A2 content esgSubNav
In This List

KCB Group targeting up to 12% earnings growth for FY'19

Podcast

Street Talk Episode 87

Blog

A New Dawn for European Bank M&A Top 5 Trends

Blog

Insight Weekly: US banks' loan growth; record share buybacks; utility M&A outlook

Blog

Banking Essentials Newsletter 2021: December Edition


KCB Group targeting up to 12% earnings growth for FY'19

KCB Group PLC is aiming for earnings growth of between 10% and 12% for full year 2019 as it looks to increase lending and make acquisitions to strengthen expansion plans, CEO Joshua Oigara told Bloomberg News.

Oigara noted that the Kenyan lender is seeking a double-digit loans growth and to speed up progression in noninterest revenue through an expansion of its mobile banking services to all markets the bank operates in, including South Sudan, Rwanda and Tanzania. Oigara said the bank is seeing a 30% yearly increase in its fees and commission income.

For the first half, the lender reported group profit after tax and exceptional items and minority interest of 12.72 billion Kenyan shillings, up from 12.11 billion shillings a year earlier.

Meanwhile, Chairman Andrew Kairu said KCB Group is looking for potential M&A targets that have a strategic fit, since depending on existing operations will not be enough to become the top bank in its selected markets.

Oigara also said the group's offer to purchase local peer National Bank of Kenya Ltd. for 5.8 billion shillings "is finished," according to Bloomberg. Oigara added that the group, which expects to complete the deal by September-end, will not increase its offer despite lawmakers' concerns about the valuation of the deal.

As of Aug. 15, US$1 was equivalent to 103.25 Kenyan shillings.