KCB Group has announced a full year net profit of Sh. 37.5 billion for the full year ended December 31. This net profit was derived from a profit before tax of Sh. 48.4 billion.
The net profit is a drop of 8.3Â from the Sh. 40.8 billion net profit that was realized by the bank in the full year ended December 31, 2022. The drop came as the bank’s operating costs increased by 61 per cent.
Following this profit drop, the bank has announced that its shareholders will not be getting any dividend payout as the bank seeks to conserve capital.
In the financial year under review, KCB Group recorded 40 per cent growth in total assets to reach Sh. 2.2 trillion. This was driven by an increase in customer deposits and loans mainly by KCB Bank Kenya.
The bank also recorded a 23.4 per cent growth in gross loans mainly attributed to households and businesses in trade, tourism and manufacturing sectors. 32.3 per cent proportion of the gross loans were recorded in subsidiaries outside of KCB Bank Kenya.
KCB Group to sell National Bank to Nigerians in multi-billion deal
“The value of mobile loans disbursed grew at an all time high of Sh. 337 billion in 2023 as well as 78 per cent growth in non-funded income from digital channels in 2023,” said chief executive officer Paul Russo.
During the release of the financial results, the bank confirmed that it will be selling its local subsidiary, National Bank of Kenya, to Nigerian lender, Access Bank for an undisclosed amount.
“In 2019, KCB took a bold step to acquire 100 per cent of the National Bank of Kenya and over four years made progressive investments, but some legacy claims have eroded all the gains we achieved,” said KCB Group Chairman Joseph Kinyua.
