KCB Group quarter three net profit hits Ksh30.6 billion

Improved performance driven by strong non-funded income growth and higher net interest income. The Board proposed an interim dividend of Ksh1.00 a share

KCB Group PLC net profit rose 21.4 percent to Ksh30.6 billion in the first nine months of 2022 on the back of sustained growth from both net interest and non-funded income lines.

This was a jump from Ksh25.2 billion reported for the same period last year.

The contribution of Group businesses, which excludes KCB Bank Kenya stood at 16.3 percent (up from 15.2 percent) driven by new businesses and the impact of BPR Bank.

“We are seeing strong revenue momentum across the corporate and retail business which positions us to meet our full year outlook. Our focus has been on delivering value and support to our customers to help them navigate the tough economic environment”, said KCB Group CEO Paul Russo.

Financial Performance

Total revenues went up 15.3 percent to Ksh92.1 billion mainly driven by the growth in non-funded income. This increased by 30.2 percent on higher foreign exchange earnings and lending fees.

Additionally, interest income grew mainly from increase in our earning assets portfolio in particular loans disbursed during the period and investment in government securities.

Operating Costs went up 19.6 percent to Ksh41.6 billion compared to Ksh34.8 billion last year. This was on account of the impact of BPR Bank, increased business activities and increase in staff costs. This saw the cost to income ratio stand at 45.1 percent. The Group has put in place cost saving initiatives targeting savings across all its businesses.

The balance sheet expanded 13.7 percent with total assets standing at Ksh1.28 trillion largely driven by growth in loans, investment in government securities funded by growth in customer deposits and additional borrowings.

Net loans and advances surged 16.4 percent to Ksh758.8 billion from additional lending to the personal, building & construction and manufacturing sectors across the Group.

“Reflecting on the nine months, we have had a good run, and the business remains resilient and well within the target on Group for the 3 quarters. This is thanks to the perseverance of our staff and the support of our customers and other stakeholders,” said KCB Group Chairman Andrew Wambari Kairu.

Customer deposits increased by 7.4 percent to Ksh922.3 billion on higher deposits from the growth of current and savings accounts.

Shareholders’ funds grew by 15.2 percent from Ksh163.0 billion to Ksh187.8 billion on improved and accumulated profits for the year to date.

The Group maintained strong capital buffers with core capital as a proportion of total risk weighted assets standing at 14.5 percent against the statutory minimum of 10.5 percent. Total capital to risk-weighted assets ratio was at 18.1 percent against a regulatory minimum of 14.5 percent.

The Board has proposed an interim dividend of Ksh1.00 per share amounting to Ksh3.2 billion.


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