Regional lender and Kenya's biggest bank by assets KCB has annouced a 10 per cent growth in net profit helped by a significant increase in interest income.

The second top tier bank to release its quarter three results after Equity Bank's announcement on Monday, said its net earnings to September 30, was Ksh13.7 billion ($134.4 million) compared Ksh12.48 billion ($122.4 million) posted during a similar period last year.

READ: Regional subsidiaries buoy Equity Bank net profit to $126 million

This performance was mostly as a result of interest income as KCB saw this revenue stream grow by Ksh5.4 billion ($53 million) to Ksh39.7 billion ($389.6 million), representing a 16 per cent growth.

“Across the six markets we operate in, while we experienced a relatively challenging economic environment on the overall, we have seen the business show great resilience,” Joshua Oigara, the bank’s CEO, said in a statement.

Cost management

“(This has arisen from) our deliberate focus on prudent cost-management and efficiency in operations, a trajectory we expect to continue in the remaining part of 2015.”

The bank’s net loans and advances during the period increased 32 per cent to Ksh347.6 billion ($3.4 billion) while customer deposits went up 35 per cent to close the period at Ksh471 billion ($4.6 billion).

The lender also announced that it has disbursed Ksh4.3 billion ($42.2 million) in loans through KCB M-Pesa since its approval in March, through 1.9 million approved applications.

KCB’s total assets during the period increased by 34 per cent to Sh607.3 billion ($6 billion)while total liabilities went up by Ksh144.8 billion ($1.4 billion) to Ksh525.4 billion ($5.2 billion), a 38 per cent jump.

Equity Bank reported Ksh12.8 billion ($125.9 million) net profit for the third quarter, up from Ksh11.2 billion ($110.2 million) in a similar period last year.

-Business Daily