NAIROBI, Kenya, Nov 18 – The Kenya Commercial Bank (KCB) group has reported a 131 percent jump in its net profits for the nine months ended September which rose to Sh25.2 bn aided by increased income growth and reduced loan provisions.
Over the period, the group’s revenue surged 16 percent to Sh 79.9 billion on account of increased interest income driven by an increase in earning assets, nonfunded income, and low-cost funding.
Non-funded income increased by 10 percent due to a rise in customer transactions.
Group Chief Executive Officer and Managing Director MD Joshua Oigara noted that the firm had remained resilient despite the COVID-19 pandemic further projecting more growth on account of increased vaccination.
“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,” Oigara said.
In order to sustain a stronger recovery in 2022, Oogara noted that the firm will deepen its focus on supporting various sectors of the economy such as MSMEs and make strategic investments that will deepen its regional play
“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,” he added.
KCB nonetheless reported a rise in expenses which went up 9 percent to Sh 34.7 billion on account of staff costs.
Customer gross loans increased 12 percent to Sh718 billion on improved lending in Kenya, Uganda, and Rwanda while customer deposits stood at Sh859 billion, an 11 percent jump due to organic growth in Kenya.
The group has approved an interim dividend of Sh 1 for every ordinary share held.
