NAIROBI, Kenya, Aug 19- Kenya Commercial Bank has announced a profit rise in its half year earnings by 102 percent to stand at Sh15.3 billion, from Sh7.6bn it recorded in a similar period last year.
The group through a statement attributed the rise in performance to improved economic activity, robust revenues, and lower provisions charge.
KCB Chief Executive Officer Joshua Oigara said, “We saw a strong first half of the year for the business with improved economic activity. The resilient and diversified nature of our business has helped us navigate the unfolding impact of the COVID-19 pandemic,” said Oigara.
“The business is well-positioned to catalyze the ongoing economic recovery as well as benefit from this resurgence, “he added.
In the period under review, revenues increased by 14 percent on account of higher interest income driven by an increase in earning assets and lower cost of funding.
Assets stood at Sh1.02 trillion from Sh953 billion as customer deposits increased 4 percent to Sh786.03 billion from Sh758billion.
Loans were up by 9 percent to close at Sh606.9 billion while total income increased 13.7percent to Sh51.2 billion during the period, with net interest income up by 17.7 percent to Sh6.6 billion from Sh31.1 billion last year.
This was on the back of higher interest earning assets and effective management of cost of funding during the period.
The lender’s operating costs were up by 7 percent on account of an increase in staff costs as the group enforced cost management initiatives to ring-fence the business from the impact of the ongoing healthcare crisis.
Loan Provisions & Asset Quality
However, the stock of non-performing loans closed the half at Sh95.7 billion, from Sh83.9 billion same period last year.“Most of this increase occurred during the second half of last year, highlighting the strain on customers and their business because of the healthcare crisis,” reads the statement.Despite the impact of the healthcare crisis, the Group says it is on track to achieve its three-year Beyond Banking Strategy which is anchored on delivering the very best in customer experience and driving a digital future.“While the pandemic is still in our midst, the roll out of a vaccine globally has brought hope that the crisis will soon be under control. The resilience and providence of our concerted efforts to reinforce the sustainability of our business have enabled us to support and walk with our customers, staff and other stakeholders,” said KCB Group Chairman Andrew Kairu.“Looking forward, we […]