KCB assets hit Sh1 trillion, graduates to tier-one status
KCB Board Chairman John Ulanga (2nd left) explains how push to widen local network drove the bank to top tier and asset value growth of Sh1.04 trillion. He's flanked by KCB Managing Director, Cosmas Kimario (2nd right) and Head of Finance, Willis Mbatia (far right). PHOTO | COURTESY
What you need to know:
- The growth in the KCB’s assets, which is equivalent to a 105 percent increase within five years, was mainly driven by growth in customer deposits and profit
- The bank’s handsome performance was triggered by strong bank strategies as well as improvement in the country’s business environment
Dar es Salaam. KCB Bank has graduated to tier one status after increasing its asset value to Sh1.04 trillion. For a bank to earn tier one status, the highest ranking in the banking industry, it should boast assets of at least Sh1 trillion, according to the Bank of Tanzania (BoT).
The growth in the KCB’s assets, which is equivalent to a 105 percent increase within five years, was mainly driven by growth in customer deposits and profit, according to the bank’s managing director, Cosmas Kimario.
He revealed that customer deposits grew by over 103 percent in the last five years (2017–22), while profit before tax grew by 182 percent in the same period.
“We are grateful that our bank is now one of the big lenders in Tanzania’s banking sector,” underscored Mr Kimario.
KCB Managing Director, Cosmas Kimario (in blue tie) reacts during the bank's recent announcement of its graduation to tier-one status following a stellar five-year run buyed by record profits. PHOTO | COURTESY
He said the bank’s handsome performance was triggered by strong bank strategies as well as improvement in the country’s business environment. Deploying digital technology in its operations was cited as another key driver for the growth. The bank, said Mr Kimario, had focused on strengthening service delivery through alternative channels as opposed to branch networks alone.
“Digital services like internet banking, mobile banking and point of sale have increased efficiency in service delivery to our customers,” he recounted.
“Above all, we have been investing in human resources to speed up our efficiency.”
The bank’s board chairman, John Ulanga said the bank was implementing an expansion plan to reach more Tanzanians across the country.
“We have a strategy to ensure organic expansion by opening five new branches in different regions with business potential in the near future.”
The bank’s head of finance, Mr Willis Mbatia, said that the KCB Bank’s profit before tax by the third quarter ending September 2022 was Sh22.4billion.
This, he said, is an increase of 39 percent compared to the same period in 2021.
