KCB Group PLC has reported a Ksh.9.8 Billion in net profit for the first quarter 2023, this is a 1% decline from the Ksh. 9.9 Billion reported in a similar period last year.
Profitability was driven by a 26.9% rise in interest income from loans to Kshs. 36.9 billion. Non-funded income also rose by 59% to Ksh. 14.8 Billion driven by a rise in customer transactions.
On the other hand, operating costs rose by 46% to hit Ksh. 18.9 Billion driven by from consolidation of TMB and expenditure to support additional revenues generated. Interest expense rose by 68% to hi t Ksh. 11.6 Billion while the loan loss provision rose by 98% to Ksh. 4.1 Billion.
Total assets rose by 40% to KShs.1.63 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 were up by 32% to KShs.928.8 billion, from increased lending across the Group while customer deposits rose by 41.5% to KShs. 1.20 trillion, mainly from TMB and additional deposits from the existing businesses.
The contribution of Group businesses (excluding KCB Bank Kenya) to the overall profitability was up to 35 % from 17.2% as investments in regional businesses continued to pay off. The contribution to total assets improved to close the period at 38.2%.
KCB Group CEO Paul Russo, had this to say, “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.”
KCB Group Plc shareholders approved KShs. 3.2 billion in final dividend payout for the 2022 financial year, signifying a sustained return to shareholders.
This brought the total dividend paid for the year to KShs 6.4 billion, following a KShs 3.2 billion in interim dividend declared at the end of last year.