KCB : Q1 2018 Financial Results

I A 1 2 3

20 21

14

18

19

16

10

13

15

12

17

11

8

4 5

6 7

9

b. Other securities b. Other securities

34

B 22 23 24 25

38

33

36

39

30

35

32

29

28

26

37

27

31

C

40 41 42 43 44 45

II

1

• 1.3 Deposits and placements with banking institutions

• 1.4 Other Interest Income

• 1.5 Total interest income 12,568,922 56,944,161

  2 INTEREST EXPENSE

  BANK

  AuditedUn-Audited Un-Audited

  555,630,311560,903,987 78,575,997 77,809,10982,289,161

  204,721 - 18,404,818 - 2,658,256 5,938,471 - - 13,451,346 466,639,396483,878,360

  -440,164,316 4,120,966 1,112,877 - 10,579,000 - -

  ---10,662,237

  53,986,100

  (22,115)

  19,147,259

  9,556,900

  384,300

  - 555,630,311560,903,987

  5,938,471-88,990,915-

  BANK

  31-Dec-17 Kshs 000

  AuditedUn-Audited Un-Audited

  46,157,47110,493,819292,871-

• 2.1 Customer deposits 2,695,372 11,754,008

• 2.2 Deposits and placement from banking institutions

• 2.3 Other interest expenses

  248,019 1,074,761

  -

  -

• 2.4 Total interest expenses 2,943,391 12,828,769

3

NET INTEREST INCOME/(LOSS) 9,625,531 44,115,392

• 4 OTHER OPERATING INCOME

  • 4.1 Fees and commissions on loans and advances

  • 4.2 Other fees and commissions

  • 4.3 Foreign exchange trading income

  • 4.4 Dividend Income

  • 4.5 Other income

  • 4.6 Total non-interest income

• 5 TOTAL OPERATING INCOME

• 6 OTHER OPERATING EXPENSES

  • 6.1 Loan loss provision

  • 6.2 Staff costs

  • 6.3 Directors' emoluments

  • 6.4 Rental charges

  • 6.5 Depreciation charge on property and equipment

  • 6.6 Amortisation charges

  • 6.7 Other operating expenses

  • 6.8 Total other operating expenses

• 7 Profit/(loss) before tax and exceptional items

• 8 Exceptional items

1,133,666 5,199,5281,179,904 5,492,435588,564 2,928,408

-

362

719,266 3,265,556

3,621,400 16,886,289

13,246,930 61,001,681

773,760 4,978,786

3,719,060 16,408,400

326,388 1,361,963

181,292 800,310

231,182 999,307

4,280 277,553

1,776,843 8,703,4077,012,805 33,529,7266,234,125 27,471,955

-

COMPANY

31-Mar-18 Kshs 000

GROUP

31-Mar-17 31-Dec-17

31-Mar-18

Kshs 000

Kshs 000

Kshs 000Un-Audited

31-Mar-17 Kshs 000

AuditedUn-Audited

- - - - - - -

67,130,100 67,648,850

- 9,900,292 125

- - 563,900 - - - -

• 933,609 887,927

• 47,971 53,016

  • - 68,639

  -

  • - 20,051

  - 8,568,354 125

  - - 562,147 - - - -

  - - - - - - -

  -

  - 395,491,270

  31-Dec-17 Kshs 000

  AuditedUn-Audited

  31-Mar-18 Kshs 000

  • 22,621,216 17,802,484

  • 9,246,661 11,288,063

    - ---

    - -

    • 32,440,656 28,884,760

      25,166,605

    • 8,704,021 9,379,729

      8,129,656

    • 60,799,938 63,511,079

      69,478,995

    • 4,029,334 8,231,770

    9,340,289

    - 8,030,307

    85,361

    38,858,626 35,304,595

    226,861

    523,785 422,684,637 - - - - - 10,454,253 132,246

    - - - - - 9,453,613 133,423

    418,618,183 - - - - -

    10,989,869

    133,423

    • 3,057,898 3,371,113 3,321,456

    • 3,512,755 4,824,432 5,600,948 811,000 1,018,000 1,018,000

    84,149 16,367,514

    605,754,786

    21,227,686 24,646,370 646,668,939 647,473,915

    - 438,710,751 4,509,997

    775,998 9,093,250 504,539,050 540,703,066 547,840,437

    739,845 1,266,666 13,131,484 14,794,338 16,542,684 7,712,886

    - - - - -- - - - -

    • - 7,755,000

      - 456,815,151 4,693,827 3,665,380 - 23,595,619 --

      -

      • 499,549,179 496,366,083

      • 4,120,966 4,509,997

      • 6,917,784 5,012,077

        -

        -

    • - 69,833

    • 14,895,208 22,519,759

    36,153 - - -

    - - 1,751 -

    • - 2,466,139

    77,025,627 77,799,999 68,715,859101,215,736 105,965,87399,633,478

    - 171,450 -- 265,629 - 159,962 -- 2,864,073 - 25,764 -

    - -

    - 43,888,994 -

    • 21,646,777 21,646,777 21,646,777 21,646,777

    • 3,066,057 3,066,0573,066,057 3,066,057 21,646,777

      56,360,181 63,394,145

      11,670,644 11,208,263

      - 9,198,171 -

      78,575,997 77,809,109605,754,786 646,668,939647,473,915

      -

      (23,727)37,894,638-

      3,066,057 21,646,777 (30,092)

      43,761,419 - - 6,132,114 - 74,576,275 - 82,289,161

      (1,040,394)

      • -314,300

      3,066,057

      134,217

      6,132,114

      9,198,171 --384,3006,132,114-

      -

      -

      COMPANY

      GROUP

      -11,421,000 2,563,636 49,867 - 14,034,503

      14,667,279 9,202,693 12,592,03715,908,603 71,385,582

      31-Mar-18 Kshs 000

      2,133,881 7,231,619

      3,325,249 197,483 - 3,522,732 10,511,771

      4,155,508 9,202,693 12,539,4605,563,792 23,000,809

      31-Mar-18 Kshs 000 Un-Audited 146,107 - - - 146,107 - 135,603 - 135,603 10,504 - - (17,449) 5,938,471 25,195 5,946,217 5,956,721 - 22,585 30,500 - 715 - 39,124 92,924 5,863,797 -

      31-Mar-17 31-Dec-17

      • - 579,817

        1,134,644 1,530,387 680,542 - 809,935

        Kshs 000

        Kshs 000 Audited

        - - ----

      • - 579,817

        - -

      • - 527,240

      - - -

      --

      -527,24052,577

      - - - 9,177,620 25,073

      --

      • 6,2051,285,092 4,665,498

      12,416,780116,475

      494,449

      -

      -

      • 3,793,401 62,179 45,953

      • 33,674 42,719

      -

      • -312,520 1,520,172

        698 2,791 -

      • -248,003 1,082,508

      • 31,776 211,981

      • 128,327 303,444

      • 7,435,660 9,074,366 12,288,593

      Kshs 000 Un-Audited

      31-Mar-17

      31-Dec-17 Kshs 000

      AuditedUn-Audited

      • 11,343,854 50,818,258

        • 14,113,676 63,673,096

      • 2,568,537 12,365,068201,285

      489,770-

      • 10,344,811 48,384,773

      • 3,768,865 15,288,323

        • 3,198,170 13,615,312570,695 1,673,011

        -

        -

        3,801,100 440,948 - 4,242,048 11,426,333

      • 1,429,651 5,595,408

      • 2,025,496 9,099,026

        - 823,553

        362

        34,6,34301,5,71544

        958,134 5,914,321

        4,444,809 19,146,769

        67,151

        397,324

        413,352 1,707,172

        • 2,872,616 12,503,115

        • 9,316,585 42,271,381

        • 6,592,018 29,114,201

        16 17 18 19

        14

        10

        13

        15

        12

        11

        • 9 Profit/(loss) after exceptional items

        III

        II STATEMENT OF COMPREHENSIVE INCOME

        BANK	COMPANY	GROUP
        31-Dec-17	31-Mar-17	31-Dec-17	31-Mar-17	31-Dec-17	31-Mar-18
        Kshs 000	Kshs 000	Kshs 000	Kshs 000	Kshs 000	Kshs 000
        Audited	Un-Audited	Audited	Un-Audited	Audited	Un-Audited
        27,471,955	9,074,366	12,288,593	6,592,018	29,114,201	7,484,169
        (9,562,422)	(7,522)	(37,423)	(2,049,691)	(10,142,554)	(3,087,126)
        1,325,767	-	(1,751)	733,483	786,465
        19,235,300	9,066,844	12,249,419	4,542,327	19,705,130	5,183,508
        -	-	-	-	-	-
        19,235,300	9,066,844	12,249,419	4,542,327	19,705,130	5,183,508
        -	-	-	(89,967)	(1,473,751)	(51,209)
        15.2 Fair value changes in available-for-sale financial
        	assets	283,334	1,589,163	-	-	283,334	3,912,705	148,244
        15.3 Re-measurement of defined benefit pension fund	-	100,000	-	-	-	100,000	-
        15.4 Share of other comprehensive income of
        associates	-	-	-	-	-	-	-
        15.5 Income tax relating to components of other	(85,000)	(506,749)	-	-	(85,000)	(579,746)	(44,473)
        comprehensive income
        Other comprehensive income for the year net of tax	198,334	1,182,414	-	-	108,367	1,959,208	52,562
        Total comprehensive income for the year	4,686,904	20,417,714	9,066,844	12,249,419	4,650,694	21,664,338	5,236,070
        EARNINGS PER SHARE- DILUTED & BASIC KSHS	0.31	0.36	11.83	4.00	5.93	6.43	6.76
        DIVIDEND PER SHARE - DECLARED KSHS	0.17	3.00
        OTHER DISCLOSURES

        (2,832,824) (7,559)

        Current tax Deferred tax

        Profit/(loss) after tax and exceptional items Minority Interest

        Profit/(loss) after tax and exceptional items and Minority Interest

        Other Comprehensive income:

        15.1 Gains/(Losses) from translating the financial statements of foreign operations

        1 NON-PERFORMING LOANS AND ADVANCES

        • a) Gross Non-performing loans and advances 29,830,144 34,181,590

        • b) Less Interest in Suspense 4,443,776 4,775,864

        c)Total Non-Performing Loans and Advances (a-b)

        • d) Less Loan Loss Provision

        • e) Net Non-Performing Loans and Advances (c-d)

        f) Discounted Value of Securities

        g) Net NPLs Exposure (e-f)

        • 2 INSIDER LOANS AND ADVANCES

          31-Mar-17

          Kshs 000 Un-Audited

          31-Mar-18

          Kshs 000 Un-Audited

          6,234,125 (1,745,555)

          7,435,660

          786,465 (1,751)

          4,488,570 -

          4,488,570

          -

          - 139,692 - -

          (41,907)

          97,784 5,487,085 0.40

          Kshs 000 Un-Audited

          31-Mar-17

          BANK 31-Dec-17 Kshs 000

          31-Mar-18 Kshs 000

          25,386,368 18,220,729

          12,577,876

          • a) Directors, Shareholders and Associates 2,606,949 2,476,014

            6,132,114 -

          • b) Employees 11,917,042 11,348,411

          c)Total Insider Loans and Advances and other facilities

        • 3 OFF-BALANCE SHEET ITEMS

          384,300

          • a)Letters of credit,guarantees, acceptances 60,455,126 60,424,701

            -

          • b) Forwards, swaps and options 9,626,333 13,215,932

          31-Mar-18

          Kshs 000 Un-Audited

          5,863,797

          - - - - -

          - 5,854,488 7.64

          3.00

          COMPANY

          GROUP

        • 4 CAPITAL STRENGTH

          c) Other contingent liabilities d)Total Contingent Liabilities

          a)Core capital

          b) Minimum Statutory Capital c)Excess (a-b)

          d) Supplementary Capital

          e) Total Capital (a+d)

          f)Total risk weighted assets

          • g) Core Capital/Total deposits Liabilities

          • h) Minimum statutory Ratio

          I) Excess

          • j) Core Capital / total risk weighted assets

          • k) Minimum Statutory Ratio

          • l) Excess (j-k)

          • m) Total Capital/total risk weighted assets

          • n) Minimum statutory Ratio

          • o) Excess (m-n)

          • p) Adjusted Core Capital/Total Deposit Liabilities*

            14,523,991

            70,081,459

            62,528,955

            76,867,104 451,451,942

          • q) Adjusted Core Capital/Total Risk Weighted Assets*

            7,165,639

            2,009,781

            63,528,955 71,969,993

          • r) Adjusted Total Capital/Total Risk Weighted Assets*

        • 5 LIQUIDITY

          • a) Liquidity Ratio

          • b) Minimum Statutory Ratio

          • c) Excess (a-b)

        13,338,149

        1,000,000 1,000,000

        5,155,858

        16.0% 16.4%

        17.0% 16.1%

        30.6% 28.5%

        14.1% 14.9%

        10.6% 8.5%

        20.0% 20.0%

        14.5% 14.5%

        10.5% 10.5%

        8.0% 8.0%

        8.0% 8.4%

        3.6% 4.4%

        2.5% 1.6%

        29,405,72618,947,410

        13,824,425

        73,640,633

        70,969,993

        10,458,316

        78,019,820483,986,168

        6,049,827

        9,717,172

        Audited

        31-Mar-18 Kshs 000 Un-Audited 40,893,918 4,760,944	31-Mar-18 Kshs 000 Un-Audited - -	31-Mar-18 Kshs 000 Un-Audited 43,774,880 5,118,839
        36,132,974	- -	-	27,405,321 32,371,150	38,656,041
        19,108,169	- -	-	19,250,483 20,350,677	20,543,885
        17,024,805	- -	-	8,154,838 12,020,472	18,112,156
        14,468,207	- -	-	6,169,886 12,645,119	16,928,275
        2,556,598	- -	-	1,984,952 (624,647)	1,183,880
        1,503,180 11,207,208	- -- -	- -	2,671,024 2,512,857 12,585,442 12,231,711	1,531,165 12,194,873
        12,710,388	- -	-	15,256,466 14,744,567	13,726,039
        73,791,121 7,669,526	- -- - - -	- - -	62,937,121 64,846,078 10,596,655 15,004,860 --	79,240,141 9,384,804
        81,460,647	--	73,533,776 79,850,938	88,624,945
        74,255,309 1,000,000	- --	- -	90,663,612 85,245,565 6,718,624 6,691,313	84,702,442 6,537,376
        73,255,309	--	-	83,944,988 78,554,252	78,165,066
        -	-	6,494,557 6,928,786	854,138
        74,255,309	--	-	97,158,169 92,174,351	88,556,580
        493,897,730 16.9% 8.0% 8.9% 15.0% 10.5% 4.5% 15.0% 14.5% 0.5% 18.0% 16.0% 16.0% 29.4% 20.0% 9.4%	- - - - - - - - - 0.0% 0.0% 0.0%	560,943,322 17.1% 8.0% 9.1% 15.1% 10.5% 4.6% 15.3% 14.5% 0.8% 18.0% 15.9% 16.1% 33.9% 20.0% 13.9%

        741,144

        -

        STATEMENT

        The Adjusted Capital Ratios include the expected credit loss provisions added back to Capital in line with the CBK Guidance Note issued in April 2018 on implementation of IFRS 9.

        1,396,882 2,225,304 1,032,393 - 886,387 5,540,966 16,967,299

        INTERIM DIVIDEND

        The Directors do not recommend payment of interim dividend.

        MESSAGE FROM THE DIRECTORS

        These financial statements are extracts from the books of the institution. The complete set of quarterly financial statements, statutory and qualitative disclosures can be accessed on the institutions websitewww.kcbbankgroup.com

        They may also be accessed at the institutions head office located at Kencom House, Moi Avenue.

        Ngeny Biwott- Group Chairman

        Joshua Oigara- Group Chief Executive Officer and Managing Director

        478,264

        296,056

        -

        -

        -

        -

        -

        3,271,018 9,483,130 7,484,169 -