KCB Group CEO & MD Joshua Oigara/ Courtesy.
NAIROBI Kenya, Nov 21– KCB Group Plc has posted a 131 percent jump in profits in the nine months ending September 2021 attributed to higher income and economic recovery from the Covid-19 pandemic.
Net profit hit Sh25.2 billion in the period under review compared to Sh10.9 billion posted in the same period last year.
KCB Group Chief Executive Joshua Oigara said the results indicate a clear sign of economic recovery across key sectors.
“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,” he added.
Total income went up by 16 percent to Sh79.9 billion while total assets increased by 15 percent to Sh1.12 trillion driven by the acquisition of Banque Populaire du Rwanda (BPR) in Rwanda.
Customer deposits went up by 11 percent to hit Sh859 billion while loans rose 12 percent to Sh718 billion on account of improved lending in Kenya, Uganda, and Rwanda.
Loan loss provisions were 53 percent lower to end the period at Sh9.3 billion from Sh20 billion a similar period last year.
Total capital stood at Sh173.5 billion, representing a total capital to risk-weighted assets ratio of 20.6 percent against a regulatory minimum of 14.5 percent.
The Group’s core capital as a proportion of total risk-weighted assets closed the period at 17.3 percent against the Central Bank of Kenya statutory minimum of 10.5 percent.
The group said it has entered the last quarter of the second year of its three-year Beyond Banking Strategy with more optimism. The strategy is anchored on delivering the very best in customer experience and driving a digital future.
Shareholders’ equity grew 20 percent from Sh136 billion to Sh163 billion on improved profit for the period.
“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,” said Oigara.
The group’s directors approved an interim dividend of Sh1 for every ordinary share of Sh1.
The bank said 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.
“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,” he added.