KCB Group posted Ksh9.8 billion in profit after tax for the first quarter 2023, supported by increased revenues.
The Group recorded a strong balance sheet growth; with total assets hitting Ksh1.63 trillion, rising on strong customer confidence, as focus shifted to supporting customers to navigate the hard economic environment while ring-fencing the business for prospects and growth.
“Our focus was on delivering value and support to customers to help them navigate the tough economic environment, while driving revenue growth for the Bank. The first quarter performance highlights the resilience of the business across the corporate and retail franchises. The regional businesses performed well, giving credence to the regional expansion strategy,” said KCB Group CEO Paul Russo.
Revenue increased by 26.9 percent to Ksh36.9 billion mainly driven by the non-funded income from customer transactions across the Group network and consolidation of Trust Merchant Bank (TMB); the Group’s newest subsidiary in the Democratic Republic of Congo.
The contribution of Group businesses (excluding KCB Bank Kenya) to the overall profitability was up to 35 percent from 17.2 percent as investments in regional businesses continued to pay off. The contribution to total assets improved to close the period at 38.2 percent.
Non-Financial Intermediaries (NFI) grew by 59.2 percent to Ksh14.8 billion from service fee income stream that is anchored on enhanced digital capabilities. This has resulted in customers conducting 99 percent of all transactions with ease and secured digital channels.
“During the period, we continued to embed customer obsession across the Group to position it as the key pillar through which we deliver our strategy. We continuously pursued innovations and delivered products with leading value propositions. We are deliberate on driving stronger growth, on the back of delivering value to customers, growing the existing businesses, opening new frontiers and a tight cost management regime,” Mr. Russo added.
Total assets rose 40 percent to Ksh1.63 trillion, making KCB the largest Bank in Eastern Africa, riding on higher loans and investment in government securities which were funded by growth in customer deposits and additional borrowings.
Customer loans increased by 32 percent to Ksh928.8 billion, from increased lending across the Group while customer deposits rose by 41.5 percent to Ksh1.20 trillion, mainly from TMB and additional deposits from the existing businesses.