KCB Group has posted a Ksh. 45.8 billion in net profit for the first nine months of the year. This represents a 49% growth from KShs.30.7 billion posted a similar period last year.
The rise in profitability was due to a 22% rise in total income to Ksh. 142.9 Billion. This was due to a 24% increase in the net interest income to Ksh. 92.8 Billion. While non funded income rose by 18% to hit Ksh. 50.1 Billion.
On the other hand, costs rose by 11% to Ksh. 67.7 billion, this was due to higher staff costs, technology expenses, spending related to business volumes.
The Group’s NPLs stood at KShs.215.3 billion, reflecting the economic conditions in different sectors across the markets. This saw a 12% rise in the loan loss provision to Ksh. 17.8 billion.
Total assets stood at KShs. 2.0 trillion, on the back of stable customer deposits growth which closed the period at KShs. 1.5 trillion. Net Loans & Advances rose to KShs.1.1 trillion benefiting from growth in retail sector lending that outpaced the impact from the appreciation of the shilling on the foreign currency denominated loans.
The contribution by subsidiaries (excluding KCB Bank Kenya) improved during the period, closing at 36.6% in profit after tax and 34% in total assets, a demonstration of the continued benefits of diversification to other markets outside Kenya.
KCB Group Chief Executive Officer, Paul Russo, said, “The operating environment has been tough across all our markets, but we have continued to walk the journey with our customers while ensuring our key fundamentals remain strong. We are optimistic of a strong end of the year, riding on improving market conditions, solutioning for customers and tapping the great strength of our people. We have made deliberate investments to support regional trade and connect millions of people across the world to opportunities on the African continent and beyond whilst making a positive social impact in the communities.”