Over 88% of all Transactions in 2018 were Outside the Branch with Mobile Being a Key Channel, Says KCB

Joshua Oigara, CEO, KCB Group
Joshua Oigara, CEO, KCB Group

The Kenya Commercial Bank (KCB) 2018 Financial Year results are out and as expected, mobile is a key revenue generator channel for the largest bank in East Africa.

At the announcements of the KCB financial results 2018, Joshua Oigara, CEO, KCB Group, revealed that the bank has experienced amazing growth numbers in agency banking, mobile loan disbursement and merchant / POS transactions.

Oigara said:

“There has been a 61% growth in Agency banking value, with the Inua Jamii programme being a key partnership for us. Total loans disbursed on mobile were up 84% to KShs 54.4 billion propelled by the installed capacity of our digital banking platform, effectively tripling monthly loan disbursements.”

Speaking on the impact of mobile transactions, Oigara said:

“Mobile remains a key channel for us. Over 88% of all KCB transactions are performed outside the branch with a 27% growth in non-branch revenue to over KES 5.2 Billion.”

Here are some of the highlights from the financial year results:

  • Value of ATM transactions grew by 51% from KES 86B to KES 130B between 2017 and 2018
  • KCB customers did 400,000 more ATM transactions in 2018 compared to 2017
  • KCB ATM related revenue grew from KES 465M in 2017 to KES 496M in 2018
  • Over KES 22B was deposited through 70 intelligent ATMS
  • Value of Agency transactions grew by 61% from KES 127B to KES 204B between 2017 and 2018
  • KCB agency banking revenue grew from KES 481M in 2017 to KES 542M in 2018
  • KCB recorded an 84% grown in mobile loans disbursed from KES 29.6B in 2017 to KES 54.4B in 2018
  • Mobile revenue grew by 40% to KES 3.175B in 2018 compared to 2017
  • Most mobile transactions were B2C
  • Despite having 88% transactions outside the branches, the branches still contributed to about 91% of the KES 62.9B revenue. Non branch revenues grew by 27% to KES 5.2B

Overall, KCB Group net profits were up by 22 percent.