KCB : H1 2018 Financial Results

KCB GROUP PLC UN AUDITED QUARTERLY FINANCIAL STATEMENTS AND OTHER DISCLOSURES FOR THE PERIOD ENDED 30TH JUNE 2018 BANK COMPANY GROUP
ISTATEMENT OF FINANCIAL POSITION A ASSETS 1 Cash ( both Local & Foreign) 2 Balances due from Central Bank of Kenya 3 Kenya Government and other securities held for dealing purposes 4 Financial Assets at fair value through profit and loss 5 Investment securities: a) Held to Maturity: a. Kenya Government securities b. Other securities b) Available for sale: a. Kenya Government securities b. Other securities 6 Deposits and balances due from local banking institutions 7 Deposits and balances due from banking institutions abroad 8 Tax recoverable 9 Loans and advances to customers (net) 10 Balances due from group companies 11 Investments in associates 12 Investments in subsidiary companies 13 Investments in joint ventures 14 Investment properties 15 Property and equipment 16 Prepaid lease rentals 17 Intangible assets 18 Deferred tax asset 19 Retirement benefit asset 20 Other assets 21 TOTAL ASSETS B LIABILITIES 22 Balances due to Central Bank of Kenya 23 Customer deposits 24 Deposits and balances due to local banking institutions 25 Deposits and balances due to foreign banking institutions 26 Other money market deposits 27 Borrowed funds 28 Balances due to group companies 29 Tax payable 30 Dividends payable 31 Deferred tax liability 32 Retirement benefit liability 33 Other liabilities 34 TOTAL LIABILITIES C SHAREHOLDERS' FUNDS 35 Paid up /Assigned capital 36 Share premium/(discount) 37 Revaluation reserves 38 Retained earnings/ Accumulated losses 39 Statutory loan loss reserve 40 Other Reserves/Remeasurement of defined asset/liability 41 Proposed dividends 42 Capital grants 43 TOTAL SHAREHOLDERS' FUNDS 44 Minority Interest 45 TOTAL LIABILITIES AND SHAREHOLDERS' FUNDS	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited
	6,850,236 18,456,216 - - 32,829,060 133,742 68,789,446 - - 9,042,873 1,250,023 373,809,146 2,417,097 - - - - 5,939,653 130,759 3,256,578 2,593,679 811,000 13,662,922	8,186,847 17,802,484 - - 28,884,760 88,202 63,129,842 2,489,208 8,030,307 5,074,613 174,568 387,942,858 1,150,511 - - - - 6,194,697 129,509 3,180,796 3,891,204 1,018,000 18,261,905	6,628,513 23,785,573 - - 25,041,952 45,853 69,478,995 2,022,525 85,361 9,930,773 - 383,875,385 3,462,398 - - - - 6,929,772 131,383 3,086,669 4,677,668 1,018,000 20,703,167	6,152,503 28,500,882 - - 25,087,739 46,533 69,666,147 2,020,691 15,885,023 5,353,396 - 386,578,198 4,135,132 - - - - 7,301,418 130,759 2,903,205 9,142,506 1,018,000 18,788,720	- - - - - - - 53,510 913,056 - - - 850,954 125 67,130,100 - - 563,292 - - - - -	- - - - - - - 53,016 887,927 - 68,639 - 8,568,354 125 67,648,850 - - 562,147 - - - - 20,051	- - - - - - - 46,651 900,747 - 69,000 - 12,979,598 125 67,648,950 - - 559,941 - - - - 84,149	- - - - - - - 38,907 884,216 - 61,611 - 252,250 125 67,648,950 - - 559,774 - - 5,554 - 993	9,886,863 20,006,048 - - 32,877,060 9,427,454 68,842,956 4,647,254 - 43,271,021 1,454,059 406,975,972 - - - - - 9,493,791 130,759 3,368,961 3,254,264 811,000 16,160,577	11,288,063 17,802,484 - - 28,884,760 9,379,729 63,511,079 8,231,770 8,030,307 35,304,595 523,785 422,684,637 - - - - - 10,454,253 132,246 3,371,113 4,824,432 1,018,000 21,227,686	10,002,205 23,785,573 - - 25,166,605 8,129,656 69,478,995 9,340,289 85,361 36,992,629 164,353 418,618,183 - - - - - 10,989,869 133,423 3,321,456 5,600,948 1,018,000 24,646,370	8,844,806 28,500,882 - - 25,177,938 5,452,142 72,018,993 9,895,938 15,885,023 33,752,125 150,945 421,508,507 - - - - - 10,328,994 131,514 3,085,579 9,977,424 1,018,000 21,952,826
	539,972,431	555,630,311	560,903,987	582,710,853	69,511,037	77,809,109	82,289,161	69,452,380	630,608,038	646,668,939	647,473,915	667,681,636
	- 423,695,874 7,387,164 822,670 - 11,974,090 - - - - - 13,705,021	- 440,164,316 4,120,966 1,112,877 - 10,579,000 - - - - - 10,662,237	- 438,710,751 4,509,997 204,721 - 18,404,818 - 2,658,256 5,938,471 - - 13,451,346	- 470,284,229 70,194 209,267 - 17,102,046 - 2,568,559 - - - 9,287,636	- - - - - - - - - - - 1,017,798	- - - - - 7,755,000 69,833 - - 1,751 - 1,266,666	- - - - - 7,575,000 - - - 1,751 - 136,135	- - - - - - 990,305 - - - - 15,499	- 482,844,611 7,387,164 8,031,361 - 16,732,935 - 118,756 - 171,230 - 16,990,721	- 499,549,179 4,120,966 6,917,784 - 14,895,208 - 265,629 - 159,962 - 14,794,338	- 496,366,083 4,509,997 5,012,077 - 22,519,759 - 2,864,073 - 25,764 - 16,542,684	- 524,938,523 70,194 8,499,695 - 20,698,615 - 2,593,263 - 42,640 - 11,854,815
	457,584,819	466,639,396	483,878,360	499,521,930	1,017,798	9,093,250	7,712,886	1,005,804	532,276,778	540,703,066	547,840,437	568,697,745
	53,986,100 - 184,912 16,321,543 11,580,756 314,300 - -	53,986,100 - (22,115) 19,147,259 9,556,900 384,300 5,938,471 -	53,986,100 - 75,670 22,579,557 - 384,300 - -	53,986,100 - 170,310 25,582,156 - 384,300 3,066,057 -	3,066,057 21,646,776 - 43,780,406 - - - -	3,066,057 21,646,777 (23,727) 37,894,638 - - 6,132,114 -	3,066,057 21,646,777 (30,092) 43,761,419 - - 6,132,114 -	3,066,056 21,646,777 (37,836) 40,705,523 - - 3,066,057	3,066,057 21,646,777 250,919 60,466,753 12,586,455 314,300 - -	3,066,057 21,646,777 134,217 63,394,145 11,208,263 384,300 6,132,114 -	3,066,057 21,646,777 237,988 67,312,103 854,138 384,300 6,132,114 -	3,066,057 21,646,777 124 69,905,510 915,066 384,300 3,066,057 -
	82,387,612	88,990,915	77,025,627	83,188,923	68,493,239	68,715,859	74,576,275	68,446,576	98,331,260	105,965,873	99,633,478	98,983,891
	-	-	-	-	-	-	-	-	-	-
	539,972,431	555,630,311	560,903,987	582,710,853	69,511,037	77,809,109	82,289,161	69,452,380	630,608,038	646,668,939	647,473,915	667,681,636
(0) 0 0 (0) - - - 0 - (0) - -
IISTATEMENT OF COMPREHENSIVE INCOME
1 INTEREST INCOME 1.1 Loans and advances 1.2 Government securities 1.3 Deposits and placements with banking institutions 1.4 Other Interest Income 1.5 Total interest income 2 INTEREST EXPENSE 2.1 Customer deposits 2.2 Deposits and placement from banking institutions 2.3 Other interest expenses 2.4 Total interest expenses 3 NET INTEREST INCOME/(LOSS) 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 5 Total non-interest income 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 9 Profit/(loss) after exceptional items 10 Current tax 11 Deferred tax 12 Profit/(loss) after tax and exceptional items 13 Minority Interest	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited
	21,712,920 5,257,164 204,128 -	46,157,471 10,493,819 292,871 -	11,421,000 2,563,636 49,867 -	23,257,599 5,421,983 179,951 -	- - -	579,817 - - -	146,107 - - -	302,821 9,811	23,945,210 6,113,635 304,649	50,818,258 12,365,068 489,770 -	12,577,876 3,010,746 79,759	25,645,200 6,333,016 241,402
	27,174,212	56,944,161	14,034,503	28,859,533	-	579,817	146,107	312,631	30,363,494	63,673,096	15,668,381	32,219,618
	5,514,756 459,358 -	11,754,008 1,074,761 -	3,325,249 197,483 -	6,444,802 490,023 -	- -	- 527,240 -	- 135,603 -	- 283,059	6,533,803 680,530 -	13,615,312 1,673,011 -	3,801,100 440,948 -	7,316,332 757,822 -
	5,974,114	12,828,769	3,522,732	6,934,825	-	527,240	135,603	283,059	7,214,333	15,288,323	4,242,048	8,074,154
	21,200,098	44,115,392	10,511,771	21,924,708	-	52,577	10,504	29,573	23,149,161	48,384,773	11,426,333	24,145,464
	2,935,031 2,389,016 1,539,513 213 1,041,583	5,199,528 5,492,435 2,928,408 362 3,265,556	1,134,644 1,530,387 680,542 - 809,935	2,870,241 2,538,434 1,295,640 53 1,705,794	- - 9,177,637 56,596	- - 6,205 12,416,780 116,475	- - (17,449) 5,938,471 25,195	- - (18,176) 9,004,528 62,272	3,114,491 4,095,367 2,644,696 213 1,632,949	5,595,408 9,099,026 4,665,498 362 3,640,515	1,396,882 2,225,304 1,032,393 - 886,387	3,078,034 3,697,558 2,823,695 53 1,880,430
	7,905,356	16,886,289	4,155,508	8,410,162	9,234,233	12,539,460	5,946,217	9,048,624	11,487,716	23,000,809	5,540,966	11,479,770
	29,105,454	61,001,681	14,667,279	30,334,870	9,234,233	12,592,037	5,956,721	9,078,197	34,636,877	71,385,582	16,967,299	35,625,234
	1,630,406 7,599,809 7,926 403,083 665,850 469,787 4,548,204	4,978,786 16,408,400 277,553 800,310 1,361,963 999,307 8,703,407	494,449 3,793,401 6,466 161,265 370,048 272,109 2,133,881	739,650 7,392,869 9,106 368,177 751,053 544,610 4,695,699	- 113,361 69,739 - 1,397 - (8,364)	- 45,953 42,719 - 2,791 - 211,981	- 11,478 8,873 - 715 - 71,858	- 25,498 15,428 - 1,430 - 92,729	2,012,647 9,085,443 142,986 779,020 832,045 503,602 6,529,052	5,914,321 19,146,769 397,324 1,520,172 1,707,172 1,082,508 12,503,115	600,297 4,451,595 48,438 337,462 478,264 296,056 3,271,018	827,684 8,599,757 94,055 668,798 915,705 590,075 6,833,934
	15,325,065	33,529,726	7,231,619	14,501,166	176,133	303,444	92,924	135,084	19,884,795	42,271,381	9,483,130	18,530,008
	13,780,388	27,471,955	7,435,660	15,833,704	9,058,100	12,288,593	5,863,797	8,943,113	14,752,082	29,114,201	7,484,169	17,095,226
	-	-	-	-	-	-	-	-	-	-
	13,780,388	27,471,955	7,435,660	15,833,704	9,058,100	12,288,593	5,863,797	8,943,113	14,752,082	29,114,201	7,484,169	17,095,226
	(3,666,454) (478,512)	(9,562,422) 1,325,767	(2,832,824) 786,465	(5,241,947) 542,802	(35,442)	(37,423) (1,751)	(7,559) (1,751)	(7,389) 7,305	(4,012,688) (478,512)	(10,142,554) 733,483	(3,087,126) 786,465	(5,528,864) 544,998
	9,635,422	19,235,300	5,389,301	11,134,559	9,022,658	12,249,419	5,854,488	8,943,029	10,260,882	19,705,130	5,183,508	12,111,360
	-	-	-	-	-	-	-	-	-
14 Profit/(loss) after tax and exceptional items and Minority Interest	9,635,422	19,235,300	5,389,301	11,134,559	9,022,658	12,249,419	5,854,488	8,943,029	10,260,882	19,705,130	5,183,508	12,111,360
15 Other Comprehensive income:
15.1 Gains/(Losses) from translating the financial statements of foreign operations 15.2 Fair value changes in available-for-sale financial assets 15.3 Re-measurement of defined benefit pension fund 15.4 Share of other comprehensive income of associates 15.5 Income tax relating to components of other comprehensive income	- 1,884,916 - (565,475)	- 1,589,163 100,000 - (506,749)	- 139,692 - - (41,907)	- 274,893 - (82,468)	- - - - -	- - - - -	- - - - -	- - - - -	(53,869) 1,884,916 - (565,475)	(1,473,751) 3,912,705 100,000 - (579,746)	(51,209) 148,244 - - (44,473)	289,296 124 - (37.20)
16 Other comprehensive income for the year net of tax 17 Total comprehensive income for the year 18 EARNINGS PER SHARE- DILUTED & BASIC KSHS 19 DIVIDEND PER SHARE - DECLARED KSHS	1,319,441	1,182,414	97,784	192,425	-	-	-	-	1,265,572	1,959,208	52,562	289,383
	10,954,863	20,417,714	5,487,085	11,326,984	9,022,658	12,249,419	5,854,488	8,943,029	11,526,454	21,664,338	5,236,070	12,400,743
	0.36	0.36	0.40	0.41	5.89	4.00	7.64	5.83	6.69	6.43	6.76	7.90
	-	0.17	0.06	3.00	-	3.00	1.00
IIIOTHER DISCLOSURES
1 NON-PERFORMING LOANS AND ADVANCES a) Gross Non-performing loans and advances b) Less Interest in Suspense 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 a) Directors, Shareholders and Associates b) Employees c)Total Insider Loans and Advances and other facilities 3 OFF-BALANCE SHEET ITEMS a)Letters of credit,guarantees, acceptances b) Forwards, swaps and options c) Other contingent liabilities d)Total Contingent Liabilities 4 CAPITAL STRENGTH 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	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited	30-Jun-17 Kshs 000 Un-Audited	31-Dec-17 Kshs 000 Audited	31-Mar-18 Kshs 000 Un-Audited	30-Jun-18 Kshs 000 Un-Audited
	30,244,109 4,505,009	34,181,590 4,775,864	40,893,918 4,760,944	35,055,794 4,298,094	33,248,978 4,918,816	37,496,454 5,125,304	43,774,880 5,118,839	37,627,677 4,539,723
	25,739,101	29,405,726	36,132,974	30,757,699	28,330,162	32,371,150	38,656,041	33,087,955
	18,236,637	18,947,410	19,108,169	18,136,909	19,103,631	20,350,677	20,543,885	19,374,003
	7,502,464	10,458,316	17,024,805	12,620,791	9,226,531	12,020,472	18,112,156	13,713,951
	5,431,083	9,717,172	14,468,207	9,107,787	9,009,014	12,645,119	16,928,275	11,333,760
	2,071,380	741,144	2,556,598	3,513,003	217,517	(624,647)	1,183,880	2,380,191
	6,097,064 11,765,695	2,476,014 11,348,411	1,503,180 11,207,208	1,202,573 11,177,880	6,006,222 12,851,701	2,512,857 12,231,711	1,531,165 12,194,873	1,203,894 12,193,876
	17,862,759	13,824,425	12,710,388	12,380,453	18,857,923	14,744,567	13,726,039	13,397,770
	71,372,628 11,628,017	60,424,701 13,215,932	73,791,121 7,669,526	69,867,244 6,908,092	76,501,166 12,445,441 -	64,846,078 15,004,860 -	79,240,141 9,384,804 -	78,728,777 8,379,263 -
	83,000,645	73,640,633	81,460,647	76,775,336	88,946,607	79,850,938	88,624,945	87,108,039
	66,554,653 1,000,000 65,554,653 13,524,635 80,079,288 466,370,824 15.7%	71,969,993 1,000,000 70,969,993 6,049,827 78,019,820 483,986,168 16.4%	74,255,309 1,000,000 73,255,309 - 74,255,309 493,897,730 16.9%	74,385,277 1,000,000 73,385,277 7,567,500 81,952,777 501,238,786 15.8%	92,715,332 6,754,433 85,960,899 6,648,292 99,363,624 531,863,349 19.2%	85,245,565 6,691,313 78,554,252 6,928,786 92,174,351 554,302,907 17.1%	84,702,442 6,537,376 78,165,066 854,138 85,556,580 560,943,322 17.1%	88,946,964 6,494,591 82,452,373 8,482,566 97,429,530 566,099,443 16.9%
h) Minimum statutory Ratio	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%	8.0%
I) Excess j) Core Capital / total risk weighted assets	7.7% 14.3%	8.4% 14.9%	8.9% 15.0%	7.8% 14.8%	11.2% 17.4%	9.1% 15.4%	9.1% 15.1%	8.9% 15.7%
k) Minimum Statutory Ratio	10.5%	10.5%	10.5%	10.5%	10.5%	10.5%	10.5%	10.5%
l) Excess (j-k) m) Total Capital/total risk weighted assets	3.8% 17.2%	4.4% 16.1%	4.5% 15.0%	4.3% 16.4%	6.9% 18.7%	4.9% 16.6%	4.6% 15.3%	5.2% 17.2%
n) Minimum statutory Ratio	14.5%	14.5%	14.5%	14.5%	14.5%	14.5%	14.5%	14.5%
o) Excess (m-n) (p) Adjusted Core Capital/Total Deposit Liabilities* (q) Adjusted Core Capital/Total Risk Weighted Assets* (r) Adjusted Total Capital/Total Risk Weighted Assets* 5 LIQUIDITY a) Liquidity Ratio b) Minimum Statutory Ratio c) Excess (a-b)	2.7% 30.0% 20.0% 10.0%	1.6% 28.5% 20.0% 8.5%	0.5% 18.0% 16.0% 16.0% 29.4% 20.0% 9.4%	1.9% 16.9% 15.8% 17.3% 31.8% 20.0% 11.8%	4.2% 35.7% 20.0% 15.7%	2.1% 29.0% 20.0% 9.0%	0.8% 18.0% 15.9% 16.1% 33.9% 20.0% 13.9%	2.7% 17.9% 16.6% 18.1% 35.3% 20.0% 15.3%
INTERIM DIVIDEND The Directors have approved payment of an interim dividend of KShs1/= for every ordinary share of KShs 1/= held. The dividend will be paid on or about Friday, 30th November, 2018, to shareholders registered at the close of business on Monday 3rd September, 2018. The register of members will be closed for one day on Tuesday 4th September, 2018 for the purpose of processing the dividend register. 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 Georgina Malombe - Director Joshua Oigara- Chief Executive Officer