KCB Group PLC net profit rose 21.4 per cent to Sh. 30.6 billion in the first nine months of 2022 on the back of sustained growth from both net interest and non-funded income lines.
This profit growth was a jump from Sh. 25.2 billion reported for the same period last year.
The contribution of Group businesses, which excludes KCB Bank Kenya stood at 16.3 per cent up from 15.2 per cent. This was driven by new businesses and the impact of BPR Bank.
“We are seeing strong revenue momentum across the corporate and retail business which positions us to meet our full-year outlook. Our focus has been on delivering value and support to our customers to help them navigate the tough economic environment,” said KCB Group CEO Paul Russo.
Total revenues went up 15.3 per ent to Sh. 92.1 billion mainly driven by the growth in non-funded income. This increased by 30.2 per cent on higher foreign exchange earnings and lending fees.
Additionally, interest Income grew mainly from an increase in our earning assets portfolio in particular loans disbursed during the period and investment in government securities.
Operating Costs went up 19.6% to Sh. 41.6 billion compared to Sh. 34.8 billion last year. This was on account of the impact of BPR Bank, increased business activities and increase in staff costs. This saw the cost-to-income ratio stand at 45.1 per cent.
The Group has put in place cost-saving initiatives targeting savings across all its businesses.
The balance sheet expanded 13.7 per cent with total assets standing at Sh. 1.28 trillion largely driven by growth in loans, investment in government securities funded by growth in customer deposits and additional borrowings.
Net loans and advances surged 16.4 per cent to Sh. 758.8 billion from additional lending to the personal, building & construction and manufacturing sectors across the Group.
Customer Deposits increased by 7.4 per cent to Sh. 922.3 billion on higher deposits from the growth of current and savings accounts.
Shareholders’ funds grew by 15.2 per cent from Sh. 163.0 billion to Sh. 187.8billion on improved and accumulated profits for the year to date.
Following the profit growth, the Board has proposed an interim dividend of Sh. 1.00 per share amounting to Sh. 3.2 billion.
KCB ..Group CEO Paul Russo appointed to the UNEP-FI Leadership Council
KCB Group, which has a presence in six countries and a representative office in Ethiopia, has been keen to tap into new growth opportunities while reinforcing existing market capabilities. The Group is keenly following the developments in Ethiopia as it seeks to grow its regional footprint.