KCB Group Plc has reported a Ksh. 34.2 Billion net profit for the year ended 31st December 2021. This was a 74% rise in profitability as compared Ksh. 19.6 Billion reported to the previous year.
The rise in profitability was as a result of revenues increasing by 13.5% to KShs.108.6 billion on account of a rise in net interest income which was up 15.0% to KShs.77.7 billion. Non funded income grew by 9.9% to KShs.30.9 billion on increased customer transactions, FX income and income from accelerated loan growth.
On the other hand, the bank’s costs went up by 11.9% to KShs.47.8 billion up from KShs.42.8 billion on account of an increase in staff and organizational costs, consolidation of Banque Populaire du Rwanda (BPR) and inflationary adjustments across the group. Other operating expenses increased marginally by 2.8% to close at Kshs 22.9B from Kshs 22.3B last year with improved cost management across the Group.
According to the bank, the ratio of non-performing loans (NPL) increased from 14.7% to 16.5%, signaling the longer-term effects of COVID-19 impact. Provisions for the period reduced by 52% to close at KShs.13.0 billion from KShs.27.2 billion a similar period last year. The decrease is largely due to lower corporate and digital lending impairment charge after the deliberate action on covid related provisions absorbed in the previous year.
Core capital as a proportion of total risk-weighted assets closed the period at 18.0% against the Central Bank of Kenya statutory minimum of 10.5%. The total capital to risk-weighted assets ratio was at 21.7% against a regulatory minimum of 14.5%.
The Board of Directors recommended a final dividend of KShs 2.00 per share. This follows an interim dividend of KShs. 1.00 paid out in January this year.