CEO Today Africa Awards

www.ceotodaymagazine.com 18 CEO Today Africa Awards 2017 KENYA JOSHUA OIGARA Group CEO & MD of Kenya Commercial Bank www.kcbgroup.com Kenya Commercial Bank Uganda Limited operates as a commercial bank and provides SME banking, corporate banking, personal banking, money transfers, and mortgage products. The company was founded in 2007 and is based in Kampala, Uganda. Kenya Commercial Bank Uganda Limited operates as a subsidiary of Kenya Commercial Bank Ltd. Since 1896, KCB Group Plc has grown to become the region’s largest banking institution with an asset base of KES 595 Billion (USD 5.84 Billion) a market capitalization of KES 105 Billion (USD 1.02B) and broad regional distribution in 7 countries (over 265 branches, 13,562 agents and 962 ATMs). Our commitment to sound corporate governance goes back to our very early days. KCB Group posted a pre-tax profit of KShs. 14.75 Billion for the first half ending June 2017, helped by a strong performance of its core retail and corporate business, non- interest income and lower interest expense. The Retail and Corporate loan book growth momentum that started late last year carried into the first half of 2017. This coupled with effective management of interest expense has cushioned the expected impact of interest rate capping in Kenya. Following these results, the Board of Directors considered and approved payment of an interim dividend of KShs 1 per share to be paid in the next 90 days. KCB Group CEO and MD Joshua Oigara said the business however remained resilient, showing strong momentum for growth into the second half of the year, adding that the management has put up strategies to boost earnings largely through digital channels. H1 2017 Results Key Highlights •PBT stood at KShs. 14.75B. •Net Interest Income was up 3% to KShs. 23.15B from KShs. 22.50B •Forex Income increased 3% to KShs. 2.65B from KShs. 2.57B •Fees & Commissions went up 14% to KShs. 7.21B from 6.30B •Total Assets improved by 3% from KShs. 610.2B to KShs. 630.6B •Net Loans and Advances up 17% from KShs. 348.7B to KShs. 407.0B •Customer deposits increased 1% from KShs. 476.5B to KShs.482.85B •Shareholder funds grew 2% from KShs. 96.5B to KShs. 98.3B •Long term debt funding was down 6% from KShs. 17.7B to KShs. 16.7B “The business fundamentals remain strong and we are optimistic of a stronger performance in the remaining part of the year. We are continually pursuing a sustainable business model and excellence in customer experience to enable us play a more catalytic role in East Africa’s economic journey,” said Mr Oigara. “The banking sector continues to undergo numerous challenges and as a Bank, our continuous innovation and customer centric orientation ensures that we remain focused on acting as an enabler for progress to our customers. That is what drives us to excellence” he added. According to the financials released on Wednesday, forex income increased 3% to KShs. 2.64B from KShs. 2.57B a similar period last year while fees and commissions went up 14% to KShs. 7.21B from KShs. 6.30B, buttressing the Bank’s resolve to deliver growth aided by non- interest income. Total loans and advances, increased by 17% to KShs. 407 billion. This drove the growth in Total assets to KShs. 630.6 billion. The growth in the balance sheet further strengthens the Bank’s capability to run a stronger regional business across East Africa. On the funding part of the business, Customer deposits increased to KShs. 482.8 billion representing a growth of 1%. This marginal growth is attributed to the continued hyperinflation in South Sudan. From a capital perspective, the Bank has sufficient cover on both key ratios i.e. core capital to risk weighted assets at 14.3% (CBK minimum-10.5%), total capital to risk weighted assets at 17.2% (CBK minimum-14.5%) and core capital to total deposits at 15.7% (CBK minimum-8%). KCB has over the past three years pursued a strategy which departs from the traditional bricks and mortar banking channels to non-branch channels, particularly digital platforms, including internet, agency, mobile banking, and cards. “This strategy focuses on growing digital banking so as to enhance the experience of our esteemed customers whenever they interact with us and at the same time spread our network in KCB,” said Mr Oigara. The first half numbers indicate that non-branch channel systems—Mbenki, KCB M-PESA, Mobi and payments— accounted for 86% of KCB’s total transactions. Last month, the Global Credit Ratings (GCR) agency affirmed the KCB’s long- term and short-term national scale ratings of AA(KE) and A1+(KE) respectively; with the outlook accorded as Stable—currently the highest for a Kenyan bank assigned by firm. The South African based ratings firm said KCB is poised to continue growing in an increasingly challenging environment, riding on an established domestic market position, strong capitalisation, sound liquidity position and support from its shareholders. Moody’s Investors Service in its latest assessment of KCB released late July said although Kenyan banks will continue to face challenges in the months ahead, with muted loan growth and mounting asset quality pressure, KCB is expected to maintain healthy profits and strong capital buffers which provide substantial protection against downside risks and help support the bank’s credit quality. FIRM PROFILE He was appointed as the KCB Group CEO on January, 2013. He previously served as the Chief Financial Officer of the Bank prior to his appointment. He holds a Masters in Business Administra- tion with a distinction in International Business Management from Edith Cowan University, Australia (2011), Bachelor of Commerce Degree, Accounting Option, from the University of Nairobi, Kenya (1997), Advanced Management Program Graduate from INSEAD, Fontainebleau, France (2010). He is also a graduate of the Program for Management Development (JuMP), Fuqua School of Business, Duke University, North Carolina, USA (2006) as well as a Certified Public Accountant of Kenya, CPA (K), School of Accountancy, Strathmore University, Kenya (1997). ABOUT JOSHUA OIGARA