KCB Group CEO Joshua Oigara. PHOTO | FILE | NMG KCB Group Plc recorded 1.8 percent growth in net profit for the three months period to March 31 amid the adverse effects of the Covid-19 pandemic.
The regional lender, which is listed on the Nairobi Securities Exchange (NSE), increased its profit after tax (PAT) to Ksh6.37 billion ($59.53 million) from Ksh6.26 billion ($58.5 million) in the same period last year.
“The economic environment marginally improved in the quarter although the uncertainties from the pandemic remain a big risk to the outlook. Focus was on conserving cash, supporting customers navigate the crisis and implementing our strategic focus areas which are anchored on digital banking and excellence in customer experience,” Chief Executive Joshua Oigara said in a statement Wednesday.
“Revenues have remained flat with the costs declining marginally. Overall performance was largely impacted by lower non-interest income due to subdued digital lending on reduced disbursements and lower customer transactions.”
During the period, operating income increased marginally by 0.38 percent to Ksh23.04 billion from Ksh22.95 billion as non-funded income declined by 20 percent due to slowdown in the digital lending and service fees waivers in Kenya to cushion customers from the pandemic.
Interest income increased by 8.71 percent to Ksh21.96 billion ($205.23 million) from Ksh20.2 billion ($188.78 million).
The lender retained the loan loss provisions at Ksh2.9 billion ($27.1 million) even as the stock of Non-performing loans (NPLs) increased by 48 percent to Ksh98 billion ($915.88 million) from Ksh66.2 billion ($618.69 million) in the same period last year.
According to the group’s unaudited financial statements, total assets rose by 3.27 percent to Ksh978 billion ($9.14 billion) from Ksh947 billion ($8.85 billion) while customer deposits increased by 1.21 percent to Ksh749 billion ($7 billion) from Ksh740 billion ($6.91 billion) during the period under review.
Net loans increased by 7.79 percent to Ksh597.1 billion ($5.58 billion) from Ksh553.9 billion ($5.17 billion).
