Kenya Commercial Bank last week became the first of the big five banks to publish its financial results for the nine months to 30 September 2013. First, the Income Statement. This is the statement that shows, in monetary terms, the operations of the company during the period under review, and tells us whether or not, those operations resulted in a profit or loss. Earnings from its core business of lending money stood at Sh30billion while the cost of customer deposits it used to create those loans stood at Sh6.3bn. Its profit in this category thus came in at Sh24.2bn. Other operating income such as fees charged on statements and ATM transactions stood at Sh12bn. This brought the banks total income from operations to Sh36bn (24.2+12bn). The expenses incurred to generate this income, paying workers, rent, bills etc stood at Sh21bn. The profit thus before assessment of tax came in at Sh15bn (Sh36bn-Sh21bn). This constituted a 15% increase compared to the Sh13bn reported the previous year. The bank paid an income tax of Sh3.8bn and an additional Sh520m that it has deferred. Net profit, available for distribution to shareholders (PAT) thus stood at Sh10.8bn or Sh4.83 per each share held. The Statement of Financial Position aka Balance Sheet, that shows what Assets the Bank has as well as the claims against those assets (Liabilities) shows that as at 30 Sep, the assets stood at Sh385bn, the largest in the region. Of this, Sh326bn represents obligations to others such as customer deposits (Sh301bn), and deposits due to other banks. This means, KCB owners, would if they sold their company today, receive Sh58bn (385-326). Its capital strength is dipping with a key ratio now at 19.7 compared to the minimum required 14.5. This means, KCB will likely come to the market to raise more funds some time next year. UP NEXT: EQUITY BANK
Posted on: Tue, 05 Nov 2013 06:57:01 +0000