Feb. 28 (Bloomberg) -- Kenya Commercial Bank Ltd., the East African nation’s biggest lender by market value and assets, said full-year profit jumped 11 percent, in line with estimates, as expansion offset slower bad-loan recoveries
Net income surged to 12.2 billion shillings ($142.2 million) in the 12 months through December from 11 billion shillings a year earlier, Chief Executive Officer Joshua Oigara told an investor briefing today in the capital, Nairobi. Net interest income climbed 28 percent to 30.6 billion shillings.
“The group’s steady performance was driven by three pillars of growth; increased revenues, tight cost management and improved efficiencies,” Oigara said in a statement handed to reporters.
Net income was forecast to be 12.3 billion shillings, according to the median estimate of five analysts surveyed by Bloomberg, including those from Renaissance Capital, Standard Investment Bank, and African Alliance Research.
“Profit came in lower than expected because the recovery of bad loans was not as strong as it was in 2011,” Victor Odendo, an investment manager at Nairobi-based CIC Asset Management Ltd., said in an interview in Nairobi today.
Kenya Commercial Bank has operations in Uganda, Tanzania, Rwanda, South Sudan and Burundi. The stock has climbed 29 percent this year, compared with a gain of 12 percent for the benchmark Nairobi Securities Exchange All-Share Index, according to data compiled by Bloomberg. The shares lost less than 0.1 percent to 38.25 shillings a share by the 3 p.m. close in Nairobi.
-- Editors: Bryson Hull, Paul Richardson
To contact the reporter on this story: Eric Ombok in Nairobi at email@example.com
To contact the editor responsible for this story: Shaji Mathew at firstname.lastname@example.org