In the first half of 2024, nine largest banks in Kenya that are listed on the Nairobi Securities Exchange collectively reported a net profit Sh. 120.3 billion. How did this performance come about? Let us take a look at each bank’s individual performance and how each performance contributed to this overall record-breaking net catch:
KCB Group: This banking group recorded a half year net profit of Sh. 29.9 billion for the period ended June 30, 2024. This was a growth of 86.4 per cent from the Sh. 16.1 billion that was reported in the same period the previous year. Total assets increase by 6 per cent to Sh. 1.97 trillion while customer deposits increased by 1.3 per cent to Sh. 1.49 trillion. Shareholder funds increased by 14.1 per cent to Sh. 241 billion.
Equity Group: Net profit increased to Sh. 29.6 billion. This represented a marginal rise of 12 per cent. In the same period the previous year, Equity Bank Group’s six months net profit had risen by 7.8 per cent to Sh. 26.3 billion, supported by higher income from lending and transactions. Subsidiaries contributed 50 per cent of the total profit after tax. The bank’s balance sheet now stands at Sh. 1.756 trillion, representing a growth of 6 per cent over the same period last year. Customer deposits increased 11 per cent to Sh. 1.3 trillion while total assets increased 6 per cent to Sh. 1.75 trillion.
Co-operative Bank: This bank recorded a 7 per cent increase in half year net profit to Sh. 12.9 billion. Total assets increased by 7.8 per cent to Sh. 716 billion while customer deposits increased by 9.4 per cent to Sh. 507.4 billion. Revenue grew by 10.9 per cent to Sh. 39.2 billion while shareholders’ funds increased by 17 per cent to Sh. 126.7 billion. The bank’s subsidiary, Kingdom Bank, contributed a profit before tax of Sh. 635.5 million in the period up 21.8 per cent from Sh. 521.9 million in the same period the previous year, riding on strong penetration of the bancassurance business.
Absa Bank Kenya: The bank recorded a 28.9 per cent increase in half year net profit to Sh. 10.7 billion. This came as profit before tax increased 27 per cent to Sh. 15.3 billion. Customer deposits grew by 6.2 per cent to Sh. 353.3 billion. Total capital adequacy ratio was at 18.6 per cent and liquidity reserve position at 35.2 per cent against the regulatory limits of 14.5 per cent and 20 per cent, respectively. Loans and advances closed at Sh. 316.3 billion while total revenues rose 16 per cent to stand at Sh. 31.8 billion.
Standard Chartered: It’s net profit in the first half of the year grew by 48.8 per cent to Sh. 10.28 billion. This was attributed to higher income from fees and interest on customer loans. Customer deposits shrunk by 2.6 per cent to Sh. 276.4 billion while the loan book grew by 2.7 per cent to Sh. 149.3 billion. Non-funded income grew by 36 per cent to Sh. 9.6 billion while net interest income increased by 19.2 per cent to Sh. 16.5 billion.
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NCBA Group: This banking group enjoyed a 5 per cent growth in net profit to Sh. 9.8 billion from the Sh. 9.3 billion that was recorded in the same period the previous year. Subsidiaries contributed Sh. 1.5 billion in profit after tax, which was about 15 per cent of the Group’s profit. The bank disbursed Sh. 478 billion in digital loans in the first half of this year. This represented a growth of 4 per cent. Customer deposits increased from Sh. 516.6 billion in the first half of 2023 to Sh. 528.9 billion. Total assets on the other hand grew from Sh. 660.3 billion in the first six months of 2023 to Sh. 689.1 billion while shareholder funds closed the Sh. 100 billion mark.
Stanbic Bank Kenya: This bank had a marginal 2.3 per cent net profit increase to Sh. 7.21 billion. Customer deposits increased by 39 per cent to Sh. 320 billion. Net interest income increased by 4.2 per cent to Sh. 12.6 billion while total revenue dipped by 4 per cent to Sh. 20.1 billion. Total assets increased by 29.6 per cent to Sh. 497.9 billion while earnings per share was 2.3 per cent up to 18.25. Customer base increased by 18 per cent to 284,555 from 241,512. Total equity went up by 8.5 per cent to Sh. 69.4 billion. Non-interest income went down by 15.1 per cent to Sh. 7.6 billion while total operating expenses dipped by 10.1 per cent to Sh. 10.1 billion.
I&M Group: Net profit grew by 17.4 per cent to Sh. 5.6 billion while net interest income increased by 35.2 per cent to Sh. 16.5 billion. I&M Bank Kenya unit saw its net interest income increase by 37 per cent to Sh. 11.2 billion. Overall, the bank’s regional units contributed 30 per cent to the operating income, which at the end of June stood at Sh. 22.67 billion. The loan book grew by 5.3 per cent to stand at Sh. 284.1 billion. Customer deposits grew by 17.5 per cent to Sh. 419.4 billion in the same period. Non-funded income decline by 11 per cent to stand at Sh. 6.16 billion.
Diamond Trust Bank: Net profit increased by 8.55 per cent to Sh. 4.34 billion, riding on the back of higher interest and non-interest income. Non-interest income increased by 15.1 per cent to Sh. 6.4 billion from the previous Sh. 5.5 billion. Net interest income increased by 8.3 per cent to Sh. 14.2 billion. The loan book, however, shrunk from Sh. 281.17 billion to Sh. 267.86 billion.
