Kenya Commercial Bank (KCB) Group’s net profit for quarter one of this year has dropped to Sh4.5 billion.
The 1.9 per cent decline from Sh4.6 billion posted in the same period last year came as interest rates, a tough economic environment and hyperinflation in Sudan started taking toll on Kenya’s largest lender by asset base. The drop in profitability came despite a 14 per cent increase in the uptake of loans.
The group’s non-interest income rose 20.3 per cent to Sh5.6 billion, up from Sh4.6 billion in the first quarter of last year, underscoring the growing importance of income derived from alternative revenue channels.
Last year, the bank saw its net profit grow by 0.5 per cent in its full-year earnings to Sh19.72 billion, the slowest growth in seven years.