KCB Group’s Profit After Tax Doubles To Ksh 15.3 Billion

Profit after tax for KCB Group doubled to 15.3 billion shillings from 7.6 billion shillings a year ago amid the effects of the ongoing COVID-19 pandemic. The profits were driven by improved economic activity, robust revenues, and lower provisions charge.

Revenues by the lender increased by 14 percent on account of higher interest income driven by an increase in earning assets and a lower cost of funding.

Putting KCB Group’s numbers into perspective: Profits after Tax were up 102 percent to 15.3 billion shillings from 7.6 billion shillings. Assets stood at 1.02 trillion shillings from 953 billion shillings.

Customer for KCB Group Deposits increased 4 percent to 786.03 billion shillings from 758.0 billion shillings. Loans grew 9 percent to close at 606.9 billion shillings.

“We saw a strong first half of the year for the business with improved economic activity. The resilient and diversified nature of our business has helped us navigate the unfolding impact of the COVID-19 pandemic,” said KCB Group CEO & MD Joshua Oigara.

Total income increased 13.7 percent to 51.2 billion shillings during the period, with net interest income up by 17.7 percent to 36.6 billion shillings from 1.1 billion last year. This was on the back of higher interest-earning assets and effective management of the cost of funding during the period.

Operating costs were up by 7 percent on account of an increase in staff costs as the Group enforced cost management initiatives to ring-fence the business from the impact of the ongoing healthcare crisis.

The cost of risk fell to 2.2 percent from 4.0 percent, with the ratio of non-performing loans (NPLs) at 14.3 percent from 13.7 percent in 2020.

The stock of NPL closed the half at 95.7 billion, from 83.9 billion shillings same periods last year. Most of this increase occurred during the second half of last year, highlighting the strain on customers and their business because of the healthcare crisis.

Provisions for the period were down 40 percent to 6.6 billion shillings as the COVID-19 related impairments had been recognized in the full year 2020, and the facilities restructured to cushion customers from the impact of the pandemic.