Kenya Commercial Bank

Ticker code KCB Industry Regional Banks KCB Bank Rwanda Limited
Avenue de la Paix
P.O Box 5620
Kigali, Rwanda
ISIN KE0000000315 Sector Financial
Initial Listing 18 June 2009 (ROTC) Financial Year End 31 December
Website www.kcbbankgroup.com Results Released Quarterly
Five Year Financial Highlights 2010 2011 2012 2013 2014
CONSOLIDATED STATEMENT OF FINANCIAL POSITION  (KES '000s)
Assets
Loans and advances to customers (net) 148,113,364 198,724,919 211,664,226 227,721,781 283,732,205
Property and equipment 8,271,647 8,017,595 8,895,573 8,484,836 8,838,074
Other assets 94,971,189 123,973,645 147,868,486 154,644,962 197,768,045
Total Assets 251,356,200 330,716,159 368,428,285 390,851,579 490,338,324
Liabilities
Customer deposits 196,974,651 259,308,849 288,037,367 305,659,189 377,271,886
Borrowed funds - 8,525,000 8,923,312 7,719,647 12,734,848
Other liabilities 15,251,778 18,343,283 16,763,047 14,117,777 24,698,033
Total Liabilities 212,226,429 286,177,132 313,723,726 327,496,613 414,704,767
Total Equity 39,129,771 44,539,027 54,704,559 63,354,966 75,633,557
TOTAL LIABILITIES AND EQUITY 251,356,200 330,716,159 368,428,285 390,851,579 490,338,324
CONSOLIDATED INCOME STATEMENT (KES '000s)
Interest income 23,109,793 28,501,387 43,082,218 41,613,398 47,475,715
Interest expense 3,464,468 4,616,241 12,445,986 8,629,113 11,527,020
Net interest income 19,645,325 23,885,146 30,636,232 32,984,286 35,948,695
Non-interest income 11,016,062 16,022,665 15,620,886 17,125,979 22,001,159
Operating income 30,661,387 39,907,811 46,257,118 50,110,264 57,949,854
Operating expenses 20,863,416 24,179,708 29,048,975 29,986,506 34,162,425
Profit before tax 9,797,971 15,129,374 17,208,143 20,123,759 23,787,429
Income tax expense 2,619,998 4,148,328 5,004,612 5,782,377 6,938,567
Profit for the year  7,177,973 10,981,046 12,203,531 14,341,382 16,848,862
Other comprehensive income:
Other comprehensive income for the year net of tax - - 2,829,304 -305,795 797,284
Profit attributable to equity holders of the bank 7,177,973 10,981,046 15,032,835 14,035,587 17,646,146
Earnings per share (KShs) 2.76 3.72 4.11 4.82 5.63
Dividend per share (KShs) 1.25 1.85 1.9 2.00 2.00
OTHER DISCLOSURES (KES '000s)
Non-performing Loans and Advances
a) Gross non-performing loans and advances 14,583,382 12,228,264 14,750,335 19,227,705 18,404,132
b) Less interest in suspense 1,796,530 1,225,595 1,816,184 2,200,117 2,588,273
c) Total non-performing loand and advances (a-b) 12,786,852 11,002,669 12,934,151 17,027,588 15,815,859
d) Less loan loss provision 6,790,567 5,240,564 7,599,324 6,761,992 9,402,308
e) Net non-performing loans and advances (c-d) 5,996,285 5,762,105 5,334,827 10,265,596 6,413,551

Period ended: 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Unit: KES '000s KES '000s KES '000s KES '000s KES '000s
Statement type: Audited Restated Audited Audited Audited
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CONSOLIDATED INCOME STATEMENT
Interest Income
Loans and advances 17,663,904 23,612,698 33,973,438 32,457,329 36,574,907
Government securities 5,259,702 3,742,965 7,648,656 8,327,336 9,991,210
Deposits and placements with banking institutions 186,187 546,989 807,968 572,654 482,412
Other interest income - 598,735 652,156 256,080 427,186
Total interest income 23,109,793 28,501,387 43,082,218 41,613,398 47,475,715
Interest Expense
Customer deposits 3,307,581 3,821,853 11,229,319 7,871,927 10,633,005
Deposits and placement from banking institutions 156,887 794,388 1,216,667 757,185 894,015
Other interest expenses - - - - -
Total interest expenses 3,464,468 4,616,241 12,445,986 8,629,113 11,527,020
Net Interest Income 19,645,325 23,885,146 30,636,232 32,984,286 35,948,695
Other Operating Income
Fees and commissions on loans and advances 4,091,986 4,203,617 3,718,064 4,684,093 4,635,350
Other fees and commissions 2,696,594 4,981,222 5,894,921 5,816,744 8,103,867
Foreign exchange trading income 2,775,494 3,607,836 3,688,137 3,710,397 4,149,902
Dividend income 1,185 26,157 13,709 12,009 103
Other income 1,450,803 3,203,833 2,306,055 2,902,735 5,111,937
Total non-interest  income 11,016,062 16,022,665 15,620,886 17,125,979 22,001,159
Total Operating Income 30,661,387 39,907,811 46,257,118 50,110,264 57,949,854
Other Operating Expenses
Loan loss provision 2,144,320 2,494,817 3,756,642 2,905,975 5,058,270
Staff costs 9,379,643 10,883,679 11,861,196 13,469,901 13,993,445
Directors' emoluments 104,401 145,592 171,559 197,395 296,963
Rental charges 798,141 1,024,329 1,159,033 1,146,429 1,346,574
Depreciation charge on property and equipment 1,382,540 1,672,850 1,755,273 1,872,231 1,885,066
Amortisation charges 375,249 497,685 538,926 580,629 502,876
Other operating expenses 6,679,122 8,059,485 9,806,346 9,813,946 11,079,231
Total other operating expenses 20,863,416 24,778,437 29,048,975 29,986,505 34,162,425
Profit before tax and exceptional items 9,797,971 15,129,374 17,208,143 20,123,759 23,787,429
Exceptional items - - - - -
Profit after exceptional items 9,797,971 15,129,374 17,208,143 20,123,759 23,787,429
Current tax -3,651,244 -4,083,979 -6,296,080 -6,520,863 -6,977,553
Deferred tax 1,031,246 -64,349 1,291,468 738,486 38,986
Profit after tax and exceptional items 7,177,973 10,981,046 12,203,531 14,341,382 16,848,862
Minority interest - - - - -
Profit after tax and exceptional items and Minority interest 7,177,973 10,981,046 12,203,531 14,341,382 16,848,862
Profit for the year 7,177,973 10,981,046 12,203,531 14,341,382 16,848,862
Attrributable to:
Owners of the parent 7,177,973 10,981,046 12,203,531 14,341,382 16,848,862
Basic and diluted earnings per share (KShs) 2.76 3.72 4.11 4.82 5.63
Dividend per share (KShs) 1.25 1.85 1.9 2.00 2.00
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Profit for the year 7,177,973 10,981,046 12,203,531 14,341,382 16,848,862
Other comprehensive income
Items that will never be reclassified to profit or loss
Re-measurement of defined pension fund  -  - 1,191,000 727,000 -177,800
Related tax at 30%  -  - -357,300 -218,100 -
 -  - 833,700 508,900 -177,800
Items that are or may be classifed to profit or loss
Exchange differences on translation of foreign operations -278,084 -193,666 97,273 -736,114 904,406
Available for sale financial assets:
Unrealized loss/gain arising from measurement at fair value 14,558 -2,208,502 1,898,331 -78581 70,678
Cumulative realized gain arising from disposal made during the year -137,110  -  -  -  -
Other comprehensive income for the year, net of taxes -400,636 -2,402,168 2,829,304 -305,795 797,284
Total comprehensive income for the year  6,777,337 8,578,878 15,032,835 14,035,587 17,646,146
Attributable to:
Owners of the parent 6,777,337 8,578,878 15,032,835 14,035,587 17,646,146

Period ended: 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15
Period length: 3 months 3 months 3 months 3 months 3 months
Unit: KES '000s KES '000s KES '000s KES '000s KES '000s
Statement type: Unaudited Audited Unaudited Unaudited Unaudited
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Interest Income
Loans and advances 9,198,755 10,368,528 10,050,219 11,060,365 11,780,998
Government securities 2,546,409 2,343,333 2,138,091 2,433,719 1,959,081
Deposits and placements with banking institutions 76,739 105,470 53,338 118,203 70,282
Other interest income - 427,186 - - -
Total interest income 11,821,903 13,244,517 12,241,648 13,612,287 13,810,361
Interest Expense
Customer deposits 2,884,300 2,787,442 2,761,025 3,118,773 4,161,803
Deposits and placement from banking institutions 243,929 335,841 221,886 306,128 735,916
Other interest expenses - - - - -
Total interest expenses 3,128,229 3,123,283 2,982,911 3,424,901 4,897,719
Net Interest Income 8,693,674 10,121,234 9,258,737 10,187,386 8,912,642
Other Operating Income
Fees and commissions on loans and advances 1,392,570 1,098,781 1,166,746 1,200,961 1,293,806
Other fees and commissions 2,018,403 2,560,235 2,050,985 2,424,864 2,186,893
Foreign exchange trading income 991,801 938,180 873,579 1,140,157 912,854
Dividend income 4 17 19 391 359
Other income 2,138,392 473,544 538,094 1,872,914 1,670,929
Total non-interest income 6,541,170 5,070,757 4,629,423 6,639,287 6,064,841
Total Operating Income 15,234,844 15,191,991 13,888,160 16,826,673 14,977,483
Other Operating Expenses
Loan loss provision 2,233,873 614,541 549,703 2,043,694 1,258,831
Staff costs 3,588,724 3,538,328 3,785,768 3,912,602 3,421,172
Directors' emoluments 53,843 86,825 87,397 69,463 60,977
Rental charges 262,594 549,133 303,792 325,690 338,940
Depreciation charge on property and equipment 385,412 592,465 450,878 476,543 487,916
Amortisation charges 211,644 38,915 122,413 133,985 151,662
Other operating expenses 2,475,223 3,681,935 2,354,915 2,895,538 3,065,039
Total other operating expenses 9,211,323 -17,405,427 7,654,866 9,857,515 8,784,537
Profit before tax and exceptional items 6,023,521 6,089,859 6,233,294 6,969,158 6,192,946
Exceptional items - - - - -
Profit after exceptional items 6,023,521 6,089,859 6,233,294 6,969,158 6,192,946
Current tax -1,729,111 -1,746,227 -1,869,988 -2,090,748 -1,509,434
Deferred tax 16,571 22,415 - - -190770
Profit after tax and exceptional items 4,310,981 4,366,047 4,363,306 4,878,410 4,492,742
Minority interest - - - - -
Profit after tax and exceptional items and Minority interest 4,310,981 4,366,047 4,363,306 4,878,410 4,492,742
Other comprehensive income for the period net of tax 720,826 534,823 95,513 -719,545 -864,537
Total comprehensive income for the period 5,031,807 4,900,870 4,458,819 4,158,865 3,628,205

Period ended: 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Unit: KES '000s KES '000s KES '000s KES '000s KES '000s
Statement type: Audited Restated Restated Restated Audited
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ASSETS
Cash (both Local & Foreign) 10,009,715 15,697,286 14,941,781 15,759,310 33,275,231
Balances due from Central Bank of Kenya 8,018,535 1,155,840 11,422,492 8,173,873 13,789,090
Kenya Government and other securities held for dealing purposes 42,051,335 367,938 2,923,263 6,241,984 1,115,943
Financial assets at fair value through profit and loss - - - - -
Investment securities:
a) Held to Maturity:   a. Kenya Government securities - 36,432,197 51,095,443 28,504,194 36,601,868
b. Other securities - - 19,355,721 20,344 670 24,467,128
b) Available for sale: a. Kenya government securities 3,425,723 - 13,618,250 35,847,320 34,147,777
b. Other securities 2,436,765 9,204,501 2,298,627 2,057,948 865,258
Deposits and balances due from local banking institutions 2,880,000 7,874,875 - 1,059,638 745,314
Deposits and balances due from banking institutions abroad 16,300,581 33,392,099 20,477,204 19,349,766 36,827,145
Tax recoverable 11,009 20,557 10,598 740,020 183,283
Loans and advances to customers (net) 148,113,364 198,724,919 211,664,226 227,721,781 283,732,205
Balances due from group companies - - - - -
Investments in associates - - - - -
Investments in subsidiary companies - - - - -
Investemtns in joint ventures - - - - -
Investment properties - - - - -
Property and equipment 8,271,647 8,017,595 8,895,573 8,484,836 8,838,074
Prepaid lease rentals 145,893 147,801 146,801 141,642 139,110
Intangible assets 1,368,385 1,516,684 1,173,945 1,403,180 1,374,215
Deferred tax asset 1,126,284 1,055,476 2,330,118 2,445,334 2,560,636
Retirement benefit asset - - 1,049,000 1,837,000 1,835,000
Other assets 5,002,289 6,708,391 7,025,103 10,739,083 9,841,047
TOTAL ASSETS 251,356,200 330,716,159 368,428,285 390,851,579 490,338,324
LIABILITIES
Balances due to Central Bank of Kenya 1,499,595 - - - -
Customer deposits 196,974,651 259,308,849 288,037,367 305,659,189 377,271,886
Deposits and balances due to local banking institutions 8,025,637 9,359,286 6,259,610 - -
Deposits and balances due to foreign banking institutions 1,531,735 4,745,863 3,073,979 6,650,977 14,295,619
Other money market deposits - - - - -
Borrowed funds - 8,525,000 8,923,312 7,719,647 12,734,848
Balances due to group companies - - - - -
Tax payable 1,837,722 119,372 1,813,086 179,377 131,928
Dividends payable - - - - -
Deferred tax liability 121 - - - 307
Retirement benefit liability - 92,000 - - -
Other liabilities 2,356,968 4,026,762 5,616,372 7,287,423 10,270,179
TOTAL LIABILITIES 212,226,429 286,177,132 313,723,726 327,496,613 414,704,767
SHAREHOLDERS FUNDS
Paid up/Assigned capital 2,950,260 2,968,746 2,970,340 2,984,228 3,025,213
Share premium (discount) 18,565,504 18,891,221 18,921,568 19,330,200 20,135,561
Revaluation reserves -172,625 -2.574,793 -579,189 -163,398 -92,718
Retained earnings/accumulated losses 13,953,178 17,721,580 23,231,666 29,399,826 39,963,539
Statutory loan loss reserve 145,629 1,866,093 3,151,528 4,371,255 5,264,936
Other reserves/remeasurement of defined asset/liability - 174,000 1,365,000 1,464,400 1,286,600
Proposed dividends 3,687,825 5,492,180 5,643,646 5,968,455 6,050,426
Capital grants - - - - -
TOTAL SHAREHOLDERS' FUNDS 39,129,771 44,539,027 54,704,559 63,354,966 75,633,557
Minority Interest  - - - - -
TOTAL LIABILITIES AND SHAREHOLDERS' FUNDS 251,356,200 330,716,159 368,428,285 390,851,579 490,338,324

Period ended: 30-Sep-14 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15
Unit: KES '000s KES '000s KES '000s KES '000s  KES '000s
Statement type: Unaudited Audited Unaudited Unaudited  Unaudited
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Assets
Cash (both Local & Foreign) 19,163,749 33,275,231 17,024,024 16,208,624 16,269,430
Balances due from Central Bank of Kenya 7,287,720 13,789,090 14,691,594 11,675,082 17,908,270
Kenya Government and other securities held for dealing purposes 16,960 1,115,943 2,461,971 3,681,893 1,082,639
Financial assets at fair value through profit and loss - - - - -
Investment securities:
a) Held to Maturity:
i. Kenya Government securities 33,675,820 36,601,868 37,026,571 44,009,634 43,624,160
ii. Other securities 21,187,670 24,467,128 25,368,129 27,765,245 31,613,264
b) Available for sale:
i. Kenya government securities 40,268,922 34,147,777 32,406,077 37,138,178 22,894,211
ii. Other securities 1,951,568 865,258 885,541 876,295 845,000
Deposits and balances due from local banking institutions 1,575,228 745,314 - 2,927,875 575,575
Deposits and balances due from banking institutions abroad 39,493,766 36,827,145 60,451,463 77,057,187 96,548,215
Tax recoverable 180,884 183,283 - 34,266 210,769
Loans and advances to customers (net) 264,296,019 283,732,205 297,031,494 320,600,852 347,649,654
Balances due from group companies - - - - -
Investments in associates - - - - -
Investments in subsidiary companies - - - - -
Investemtns in joint ventures - - - - -
Investment properties - - - - -
Property and equipment 8,421,314 8,838,074 8,922,027 9,244,899 9,376,376
Prepaid lease rentals 285,424 139,110 268,702 265,298 277,992
Intangible assets 1,242,031 1,374,215 1,287,196 1,529,044 1,367,813
Deferred tax asset 2,461,905 2,560,636 2,565,608 2,554,549 2,369,866
Retirement benefit asset 1,837,000 1,835,000 1,835,000 1,835,000 1,835,000
Other assets 8,220,429 9,841,047 8,039,376 9,205,856 12,803,675
Total assets 451,566,409 490,338,324 510,264,773 566,609,777 607,251,909
           
Liabilities
Balances due to Central Bank of Kenya - - - - -
Customer deposits 350,104,094 377,271,886 397,102,268 443,036,231 471,054,955
Deposits and balances due to local banking institutions 2,412,838 - 127,523 7,100,000 13,029,300
Deposits and balances due to foreign banking institutions 6,906,118 14,295,619 9,320,810 5,173,359 6,115,984
Other money market deposits - - - - -
Borrowed funds 13,158,705 12,734,848 12,724,434 22,474,447 22,507,217
Balances due to group companies - - - - -
Tax payable 537,826 131,928 1,532,309 1,389 12,358
Dividends payable - - - - -
Deferred tax liability - 307 - 46,175 -
Retirement benefit liability - - - - -
Other liabilities 7,468,695 10,270,179 10,049,311 10,680,877 12,703,075
Total liabilities 380,588,276 414,704,767 430,856,655 488,512,478 525,422,889
           
Shareholders' funds
Paid up/Assigned capital 3,025,213 3,025,213 3,025,213 3,025,213 3,025,213
Share premium (discount) 20,135,561 20,135,561 20,135,561 20,135,561 20,135,561
Revaluation reserves 336,718 -92,718 -295,770 -930,855 -2,314,154
Retained earnings/accumulated losses 41,882,641 39,963,539 44,351,953 48,286,718 51,805,691
Statutory loan loss reserve 4,133,600 5,264,936 4,844,135 6,294,062 7,890,109
Other reserves/remeasurement of defined asset/liability 1,464,400 1,286,600 1,286,600 1,286,600 1,286,600
Proposed dividends - 6,050,426 6,050,426 - -
Capital grants - - - - -
Total shareholders' funds 70,978,133 75,633,557 79,408,118 78,097,299 81,829,020
Minority Interest - - - - -
Total liabilities and shareholders' funds 451,566,409 490,338,324 510,264,773 566,609,777 607,251,909

PERIOD ENDED: 31-Dec-10 31-Dec-11 31-Dec-12 31-Dec-13 31-Dec-14
Unit: KES '000s KES '000s KES '000s KES '000s KES '000s
Statement type: Audited Restated Restated Audited Audited
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CONSOLIDATED STATEMENT OF CASH FLOWS
           
Net cash flows generated from operating activities -3,493,482 13,653,776 6,009,336 5,205,833 23,557,934
           
Investing activities
Proceeds from disposal of property and equipment 20,128 359,151 82,794 84,879 56,521
Purchase of intangible assets -389,156 -581,782 -196,187 -807,330 -471,429
Purchase of operating lease rentals - -2,769 - - -
Purchase of property and equipment -1,903,559 -1,732,186 -2,665,360 -1,742,986 -2,283,265
Effects of exchange rate on translation of foreign operations -278,084 -76,894 119,156 -736,114 904,406
Net cash flows used in investing activities -2,550,671 -2,034,480 -2,659,597 -3,201,551 -1,793,767
           
Financing activities
Proceeds from additional shares floated 12,000,000 344,203 31,941 422,520 846,346
Net movement in borrowings - 8,525,000 - -1,213,795 4,574,247
Dividends paid -2,217,778 -3,687,825 -5,492,180 -5,643,646 -5,968,455
Net cash flows used in financing activities 9,782,222 5,181,378 -5,460,239 -6,434,921 -547,862
           
Increase/decrease in cash and cash equivalents 3,738,069 16,800,674 -2,110,500 -4,430,639 21,216,305
Cash and cash equivalents at the beginning of the year 21,392,673 25,130,742 41,931,416 39,820,916 35,390,277
Cash and cash equivalents at the end of the year 25,130,742 41,931,416 39,820,916 35,390,277 56,606,582