Highlights of the KCB AGM 2013;
No opening in other countries in the year 2013
The Bank wants to increase market share in the country it has operations.
Currently the market share is as follows;
Uganda--Less than 10%
Kenya--17%
South Sudan--41% target is 50%++
Burundi--Less than 10%
Rwanda--Less than 10%
Tanzania--Less than 10%
Some of the regions it had intended to open branches are also very risky.
There will be a dividend conservation policy going forward to avoid future rights issue.The bank will want to boost its core capital through retained earnings.
S&L is still there and is giving out mortgages from 15.5% and at a maximum duration of 25 years.
Rwanda subsidiary last year the bank made a loss while in 2011 it had made a profit.This due to tough macro-economic conditions but in the 1st Quarter of 2013 the subsidiary had swung into profitability.
KCB is number 1 in issuing loans to construction projects especially real estate and also number 1 mortgage lender.
Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle