Home Business KCB Group Q3 profit up 21.4pc to Sh30.5bn

KCB Group Q3 profit up 21.4pc to Sh30.5bn

by kenya-tribune

NAIROBI, Kenya, Nov 15 – KCB Group grew its net profit by 21.4 per cent to Sh30.5billion in the first nine months of 2022 up from Sh25.2billon reported in the same period last year.

The growth was driven by sustained growth on the net interest and non-funded income lines.

The lender’s total revenue grew by 15.3 per cent to Sh92.1 billion mainly driven by the growth in non-funded income which increased by 30.2 per cent on higher foreign exchange earnings and lending fees.

Additionally, interest Income grew mainly from increase in earning assets portfolio in particular loans disbursed during the period and investment in government securities.

“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 on Tuesday.

In the period, operating costs went up 19.6 per cent to Sh41.6billion compared to Sh34.8 billion last year. This was on account of the impact of the acquisition of BPR Bank, increased business activities, and increase in staff costs.

The increased operating costs saw the cost-to-income ratio stand at 45.1 per cent.

The balance sheet expanded 13.7 per cent with total assets standing at Sh1.28 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 Sh758.8 billion from additional lending to the personal, building & construction and manufacturing sectors across the group.

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Further, customer deposits increased by 7.4 per cent to Sh922.3billion on higher deposits from the growth of current and savings accounts.

Shareholders’ funds grew by 15.2 per cent from Sh163.0 billion to Sh187.8billion on improved and accumulated profits for the year to date.

The Group maintained strong capital buffers with core capital as a proportion of total risk-weighted assets standing at 14.5 per cent against the statutory minimum of 10.5 per cent.

The total capital to risk-weighted assets ratio was at 18.1 per cent against a regulatory minimum of 14.5 per cent.

The Board proposed an interim dividend of Sh1.00 per share amounting to Sh3.2 billion.

“Reflecting on the nine months, we have had a good run, and the business remains resilient and well within the target on Group for the 3 quarters. This is thanks to the perseverance of our staff and the support of our customers and other stakeholders,” said KCB Group Chairman Andrew Wambari Kairu.

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