KCB Group has released its financial results for Q3 ending September 2021. The bank has registered a net profit stood at Ksh. 25.2 billion, a 131% improvement from Ksh. 10.9 billion posted in a similar period last year.
Similarly, the group recorded a 16% increase in total income to Ksh. 79.9 billion. The growth was attributed to higher interest income driven by an increase in earning assets, higher non interest income, driven by increased transactional volumes and FX income and lower cost of funding.
KCB’s balance Sheet also increased 15% to Ksh. 1.122 trillion, while customer gross loans increased 12% to Ksh. 718 billion on improved lending in Kenya, Uganda and Rwanda. Customer deposits also increased by 11% to register Ksh. 859 billion, due to organic growth in Kenya.
Total revenue increased 16% to Ksh. 79.9 billion on account of increase in interest income driven by increase in earning assets, non-funded income, and lower cost of funding. Non-funded income also increased by 10% on increased customer transactions.
On the flipside, total expenses increased by 9% to Ksh. 34.7 billion.
Speaking at the financial results release, Joshua Oigara, KCB Group CEO and MD said, “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. 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.”
During the period, the cost of risk improved to 200 bps driven by reduced provisions in corporate and digital loans, while the ratio of non-performing loans (NPL) decreased from 15.1% to 13.7%. Provisions were 53% lower to end the period at Ksh. 9.3 billion from Ksh. 20 billion a similar period last year.
The stock of NPL rose marginally to Ksh. 98.1 billion, from Ksh. 97 billion posted the same period last year mainly from KCB Bank Kenya and partially offset by a reduction in National Bank of Kenya, KCB Bank Rwanda, and KCB Bank Tanzania stock.
Total assets increased by 15% to Ksh. 1.12 trillion, driven by organic growth across our businesses and acquisition of Banque Populaire du Rwanda (BPR) in Rwanda.
The KCB Group directors have also approved an interim dividend of Ksh. 1.00 for every ordinary share of Ksh. 1.00 held. The dividend will be paid on or about Friday, January 14, 2022 to shareholders on the register at the close of business on Thursday, December 9, 2021.
“In anticipation of a stronger 2022 and a more sustained recovery, we are deepening our focus on supporting various sectors of the economy such as MSMEs as we walk with our customers to regain the lost foothold due to the COVID-19 crisis. We are making strategic investments to deepen our regional play while building a sustainable business for the future that is anchored on people, planet and profits,” added Mr. Oigara.