Customers inside a KCB branch banking hall. The bank recorded eight per cent growth in net profit during the three months period to March 31. PHOTO | AFP The group’s profit after tax rose to Ksh6.26 billion ($62.6 million) from Ksh5.77 billion ($57.7 million) in the same period last year with a huge portion of revenues coming from fees and commissions.
However, the bank, which has operations in Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan, says its growth outlook in the whole of this year is not promising largely due to the expected impact on revenues by the Covid-19 pandemic.
Regional lender KCB recorded eight per cent growth in net profit during the three months period to March 31.
The performance is buoyed by the improved performance of its regional subsidiaries and the newly acquired National Bank of Kenya.
The group’s profit after tax rose to Ksh6.26 billion ($62.6 million) from Ksh5.77 billion ($57.7 million) in the same period last year with a huge portion of revenues coming from fees and commissions charged on banking transactions and investments in government securities.
However, the bank, which has operations in Kenya, Uganda, Tanzania, Rwanda, Burundi and South Sudan, says its growth outlook in the whole of this year is not promising largely due to the expected impact on revenues by the Covid-19 pandemic.
The pandemic has seen lenders resort to loan restructuring to cushion borrowers from economic hardship, with governments implementing stringent measures to curb the spread of the disease including restriction of movements and adoption of cashless transactions.
“We are taking all the necessary precautions to safeguard the safety and well-being of our customers, staff and the general public in the wake of the pandemic. We expect our performance to be negatively impacted by the outbreak as business has been disrupted in all our markets. The crisis has taken toll on all segments of our customers, effectively suppressing demand for credit,” said Joshua Oigara, the group’s chief executive.
“We expect performance in the next two quarters to be impacted as the crisis is affecting the ability of customers to service their loans and reducing the demand for credit. We have taken measures to conserve our capital, manage costs and keep a keen eye on liquidity.”
Mr Oigara said the bank is reviewing its operations to focus more on digital banking to protect further the erosion of its revenues.
“We are recalibrating our business to focus more on […]