KCB Group announced a net profit to Ksh. 19.5 Billion for the half-year ended June 2022, this is a 27.5 percent rise in profitability from  Ksh. 15.3 Billion reported for a similar period last year.

This rise in profitability was on the back of a 15.7 percent rise in total interest income rose to Sh54.5 billion amid increased lending and investment in government debt securities. During the period, non-interest income rose by 29.8 percent  to Sh19.2 billion.

On the other hand, operating expenses increased 7.9 percent to Sh31.6 billion, partly driven by staff costs which rose to Sh14 billion from Sh12.1 billion. The bank indicated that its payroll expenses have jumped due to the acquisition of Banque Populaire du Rwanda Plc (BPR) and salary increments across its regional operations in response to inflationary pressures. Also, interest expenses increased 30.3 percent to Sh13.9 billion, partly due to customer deposits rising by 15.5 percent to Sh908.5 billion.

KCB’s loan loss provision shrunk by Sh2.2 billion to Sh4.3 billion despite the stock of gross non-performing loans rallying 81.1 percent to Sh173.4 billion.

The bank is in the process of buying an 85 percent controlling  stake in Trust Merchant Bank in the Democratic Republic of Congo in its latest regional expansion drive.