KCB Group has reported a net profit rise of 131% during the third quarter period ending September 30, 2021 attributed to income growth and reduced loan loss provision.
The giant lender profit after tax during the nine month period to September surged to Kshs. 25.2 billion compared to Kshs. 10.9 billion at the hieight of COVID-19 last year.
“This is the strongest quarter for us since the COVID-19 pandemic struck 20 months ago, with clear signs of economic recovery across key sectors. While we are cautiously optimistic of the prospects, especially due to the dynamic nature of the healthcare crisis, we project that the worst is behind us,” said Joshua Oigara, KCB Group Chief Executive Officer.
The Group recorded a 16% rise in total income which grew to hit Kshs.79.9 billion attributed to higher interest income which was driven by an increase in earning assets and a growth in non-interest income driven by increased transactional volumes and FX income and lower cost of funding.
“Our focus was on cost management, cash preservation and driving sustainable business growth. Our resolve to support our customers to navigate the crisis has helped them pick up from the subdued business environment,” Oigara added.
The lender registered a reduction in non-performing loans (NPL) which eased from 15.1% to 13.7% as loan loss provisions shrunk 53% to Kshs. 9.3 billion from Kshs. 20 billion last year.
However, The stock of NPL rose marginally to Kshs. 98.1 billion, from Kshs. 97 billion posted the
same period last year mainly from KCB Bank Kenya and partially offset by a reduction
in National Bank of Kenya, KCB Bank Rwanda, and KCB Bank Tanzania stock, the bank said.
Increased staff costs saw operational expenses rise 9% to Kshs. 34.7 billion during the period
Total assets increased by 15% to Kshs. 1.12 trillion, driven by acquisition of Banque Populaire du Rwanda (BPR) in Rwanda.Customer deposits on t he other hand rose 11% to Kshs. 859 billion as gross loans rose 12% to Kshs. 718 billion on account of improved lending in Kenya, Uganda, and Rwanda.The Directors have approved an interim dividend of KShs.1.00 for every ordinary share of KShs.1.00 held which will be paid in January next year. NBK profit growth KCB Group subsidiary National Bank of Kenya (NBK) also posted a rise in net profit which increased 1126%, from Kshs. 87 million to Kshs. 1.1 billion during the quarter under review.The profit growth is attributed to increased income […]
