Kenya Commercial Bank (KCB) group has shelved its earlier plans to acquire a stake in Chase Bank after the ‘due diligence’ process the bank has been undertaking elapses in two months.
The bank was placed under receivership in April after the directors under-reported insider loans by Sh8 billion triggering a run on the institution.
Group Chief Executive Joshua Oigara while unveiling KCB half-year results said: “We have done our job and we have returned Chase Bank where it is supposed to be.”
Oigara said once a consultancy firm appointed by Central Bank of Kenya presents its findings next month, KCB will exit from the lender.
He said increased interest income propelled KCB to announce a pre-tax profit of Sh15.1 billion in its half-year ending June 30, 2016. The bank’s net interest during the period increased from Sh19.4 billion to Sh22.5 billion and was mainly driven by high interest rate during the period.
However, a strong show from new business lines and decline in costs also contributed to the profit growth. Oigara said the bank’s stronger asset book and better yields contributed to interest income which surged by 22 per cent during the period.
“This helped the business shrug off a harsh economic and political environment in the international business to post the impressive results,” he said. He said business anchored on improved efficiency, diversified sources of income and a strong loan book growth always get consistent growth.