KCB Bank Tanzania Profits after Tax Hit TZS 26.1 Billion in H1 2024

Read Time:1 Minute, 52 Second

KCB Bank Tanzania recorded a profit of TZS 26.1 billion in H1 2024, marking a 46 percent increase from the TZS 17.8 billion recorded at the year’s start.

The bank’s pre-tax profits reached an impressive TZS 38.7 billion (KES 1.89 billion), driven by a 15 percent rise in revenue to TZS 58.1 billion (Ksh 2.8 billion).

The bank’s customer portfolio also saw a notable improvement, increasing to TZS 973.8 billion from TZS 791 billion at the beginning of the year.

In January 2024, KCB Bank Tanzania ascended to become the second-largest mortgage lender in Tanzania, nearly tripling its loan book over the nine months ending in September 2023.

This expansion elevated KCB Bank Tanzania’s market share in the mortgage sector to 10.12 percent, making it the second-largest lender in this segment. In contrast, the bank held the seventh position with a 4.02 percent market share in September 2022.

Customer deposits grew by 24 percent to TZS 975.8 billion in the first half of 2024, equivalent to Ksh 47.6 billion, up from TZS 786 billion.

The bank’s total assets surged by 21 percent to TZS 1.5 trillion, achieving a historic milestone for the subsidiary. This growth propelled KCB Bank Tanzania from a tier-two to a tier-one institution.

Currently, KCB operates 17 branches and plans to expand to 18 by the end of 2024, targeting strategically significant locations with high economic potential.

Read: I&M Bank Tanzania Records TZS 5.1 Billion Post-Tax Profit in H1 2024

Net interest income reached TZS 43.6 billion, a 26 percent increase from TZS 34 billion at the start of 2024. However, non-interest income decreased by 9 percent, from TZS 15 billion to TZS 14.5 billion.

Additionally, shareholders’ funds grew by 25% to TZS 199.4 billion, up from TZS 159 billion at the beginning of the year.

KCB Bank Tanzania demonstrated robust financial performance, with a non-performing loan (NPL) ratio of just 1.3%, indicating excellent asset quality and minimal credit risk.

Furthermore, the bank’s return on average equity (ROAE) of 27.7% highlighted its exceptional profitability and efficiency in generating returns for shareholders during the period.