Kenya Commercial Bank (KCB) Uganda’s net profit for 2014 has reduced to UShs3.48b, down from UShs6.75b recorded in 2013, representing a 48.4% reduction.
While the bank didn’t explain factors behind the decline in its recently released financial statement for the year ended December 2014, increased expenditure and bad loans can be attributed to this shortfall.
According to the statement, the bank’s total operating expenses increased to UShs36.42b in 2014, up from UShs31.6b, while bad loans written off increased to UShs5.96b, up from UShs3.26b in 2013.
However, the bank’s Non-Performing Loans (NPLs) reduced to UShs12.8b, down from UShs15.3b in 2013. Additionally, the bank’s loans advanced to customers increased slightly to UShs197.7b, up from UShs187.48b in 2013, while Customer deposits rose to UShs417.39b, up from UShs337.21b in 2013.
Total assets for the bank increased to UShs 523.07b in 2014, up from 412.09bn in 2013. KCB Uganda, a subsidiary of Kenya based KCB Group entered the Ugandan market in November, 2007 and it is headed by Joram Kiarie, who joined the bank last year, replacing Albert Odongo who had joined the institution in June 2010.