Thursday, November 30, 2023

KCB Group net profit falls to Sh. 9.5 billion in first three months of 2023

KCB Group PLC has posted a net profit of Sh. 9.5 billion in the first quarter of 2023.

This has represented a dip in profitability of 2.9 per cent from the Sh. 9.79 billion that the lender posted in the same period the previous year.

During the period under review, total assets hit Sh. 1.63 trillion on strong customer confidence, as focus shifted to supporting customers to navigate the hard economic environment while ring fencing the business for prospects and growth.

Revenue increased by 26.9 per cent to Sh. 36.9 billion mainly driven by the non-funded income from customer transactions.

“Our focus was on delivering value and support to customers to help them navigate the tough economic environment, while driving revenue growth for the Bank,” said KCB Group chief executive officer Paul Russo.

“The first quarter performance highlights the resilience of the KCB Group business across the corporateand retail franchises. The regional businesses performed well, giving credence to the regional expansion strategy.”

KCB Bank Group assets cross Sh. 1.55 trillion

On asset quality, the ratio of non-performing loans (NPL) stood at 17.5 per cent, largely driven by downgrades from the KCB Kenya business.

Total assets rose 40 per cent to Sh.1.63 trillion, making KCB the largest bank in Eastern Africa by assets, riding on higher loans and investment in government securities which were funded by growth in customer deposits and additional borrowings.

Customer loans were up by 32 per cent to Sh. 928.8 billion, from increased lending across the Group while customer deposits rose by 41.5 per cent to Sh. 1.20 trillion.

Shareholders’ funds grew by 17 per cent to Sh. 214.8 billion from the increase in accumulated profits for the year to date.

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