KCB Bank Tanzania profits hit TZS 26.1 billion in the first six months of 2024, up by 46 percent from the TZS 17.8 billion the Kenya banking subsidiary recorded at the beginning of the year. The bank impressively recorded pre-tax profits of TZS 38.7 billion (KES 1.89 billion). These profits were due to the high revenue the bank received, which improved by 15 percent to TZS 58.1 billion, equivalent to Ksh 2.8 billion.
KCB Bank Tanzania’s customer portfolio also improved, jumping to TZS 973.8 billion from the TZS 791 billion the bank recorded at the beginning of the year. Back in January 2024, KCB Bank Tanzania became the second-largest mortgage lender in Tanzania after nearly tripling its loan book in the nine months ending in September 2023.
This increase boosted KCB Bank Tanzania’s market share in the mortgage market to 10.12 percent, making it the second-largest lender in this category. In comparison, in September 2022, it was ranked seventh with a market share of 4.02 percent.
Customer deposits also increased by 24 percent to TZS 975.8 billion during the first half of 2024, equivalent to Ksh 47.6 billion, up from TZS 786 billion.
Total assets increased by 21 percent to TZS 1.5 trillion, marking a historic milestone for the banking subsidiary. This saw KCB Bank Tanzania advance from a tier-two to a tier-one institution. Currently, KCB operates 17 branches and aims to increase this number to 18 by the end of 2024, strategically selecting locations with high economic potential.
Read: NMB Bank Named Best Bank in Tanzania
Net interest income hit TZS 43.6 billion, an increase of 26 percent from the TZS 34 billion recorded at the beginning of 2024. The non-interest income, however, decreased by 9 percent, from TZS 15 billion to TZS 14.5 billion. Additionally, the bank’s shareholders’ funds rose by 25% to TZS 199.4 billion, up from the TZS 159 billion it recorded at the start of the year.
The bank exhibited a strong financial performance, recording a non-performing loan (NPL) ratio of a mere 1.3%, indicating excellent asset quality and minimal credit risk. Moreover, the bank’s return on average equity (ROAE) of 27.7% demonstrated exceptional profitability and efficiency in generating returns for shareholders during the period.
More Stories
KCB Bank Profits Rise by 86 percent for H1 2024
Co-op Bank Profits After Tax Hit Ksh 13 Billion in First Half of 2024
Ecobank South Sudan Introduces Premier Banking Club