KCB Group CEO and MD Joshua Oigara KCB group Chairperson Andrew Kairu KCB and Group CFO Lawrence Kimathi during the release of KCB Half year 2021 financial results in Nairobi on August 19, 2021 Kenya Commercial Bank’s investment in National Bank of Kenya is paying back after the subsidiary posted a Sh717.6 million net profit in the first half of 2021.
This comes after a loss of Sh381.3 million in 2020 representing a 307 per cent growth driven by increased income from loan interest and foreign exchange trading, coupled with lower loan loss provisions.
KCB’s Chief Financial Officer Lawrence Kimathi said that the improved performance by NBK was pegged on the Group managing its cost base through a shared back office integration.
He further said that the Group’s capital injection to NBK allowed them to recover from its bad loans allowing them to bounce back to profitability.
In the latest annual report, the Group noted that they injected Sh8billion into NBK to enable the subsidiary meet the capital adequacy requirements and also to bolster its resources.
Kimathi said that the capital also boosted NBK’s credibility to customers as it saw them grow deposits which can then enable them to lend.
Other subsidiaries in the region also recorded a growth in profits, KCB South Sudan posted Sh551million profit in the half year from Sh305million last year, KCB Tanzania posted a sh499 million profit from Sh301million last year.
KCB Rwanda posted a Sh497million profit while KCB Burundi posted Sh284million profit.
KCB Bank Kenya’s net profit grew to Sh13.2 billion in the first half of 2021 from Sh7.4billion.
KCB Uganda was the only subsidiary that recorded a dip in profits in the period from Sh216million in the first half of 2020 to Sh181million.
During the half year, the lender’s customer deposits stood at Sh99.7 billion due to increased inflows among existing clients and new accounts in corporate and retail business units of the Bank.This saw total assets grow by 12 per cent to Sh 134 billion, driven by growth in net loans and advances, which were up 20 per cent to Sh60billion.Net interest income on the other hand grew by 21 per cent from the previous year to stand at Sh4.1billion.The half year was marked by a 30 per cent growth in interest paid to Sh1.7 billion on increased customer deposits, from transactions on the revamped digital channels.Total operating costs during the period remained relatively flat at Sh4.1 billion over a similar […]