KCB Group profit after tax for the first 9 months of 2022 has risen by 21.4 per cent to Sh30.6 billion based on sustained growth from both net interest and non-funded income sources.

The net profit by the bank jump from Sh25.2 billion reported for a similar period last year.

Contribution made by the group’s businesses, excluding KCB Bank Kenya, rose to 16.3 per cent from 15.2 per cent last year driven by new businesses and the impact of BPR Bank.

“We are seeing strong revenue momentum across the corporate and retail business which positions us to meet our full year outlook. Our focus has been on delivering value and support to our customers to help them navigate the tough economic environment,” said KCB Group CEO Paul Russo on Tuesday.

Financial Performance

KCB’s total revenues increased by 15.3 per cent to stand at Sh92.1 billion on the back of growth in non-funded income, which increased by 30.2 per cent due to increased foreign exchange earnings and lending fees.

Similarly, interest income went up mainly from an increase in its earning assets portfolio, mainly loans disbursed during the said period and investment in government securities.

Its operation costs rose by 19.6 per cent to Sh41.6 billion compared to Sh34.8 billion in 2021 based on the impact of BPR Bank as well as increased business activities and staff costs.

The cost to income ratio stood at 45.1 per cent as it established various initiatives to save on cost as it targets to make savings across all its businesses.

Its balance sheet expanded by 13.7 per cent with its total assets standing at Sh1.28 trillion driven by rising loans, investment in government securities financed by growth in customer deposits and extra borrowings.

The net loans and advances went up 16.4 per cent to Sh758.8 billion from extra lending to the personal, building and construction as well as manufacturing sectors across KCB Group.

KCB’s customer deposits also increased by 7.4 per cent to Sh922.3 billion on the back of higher deposits from the advancement of current and savings accounts.

Interim Dividend

Funds held by shareholders grew by 15.2 per cent from Sh163.0 billion to Sh187.8 billion on improved and accumulated profits for the year to date.

KCB Group maintained strong capital buffers with core capital as a proportion of total risk weighted assets standing at 14.5 per cent against the statutory minimum of 10.5 per cent.

The total capital to risk-weighted assets ratio was at 18.1 per cent against a regulatory minimum of 14.5 per cent.

In that regard, the bank’s board has proposed an interim dividend of Sh1.00 per share with the total shares issued amounting to Sh3.2 billion.

KCB Group Chairman Andrew Wambari Kairu has expressed optimism the Group will continue realizing revenue growth across all its businesses with projected GDP growth in all markets amid currency depreciation and high inflation in most countries it operates in.

“Reflecting on the nine months, we have had a good run, and the business remains resilient and well within the target on Group for the 3 quarters. This is thanks to the perseverance of our staff and the support of our customers and other stakeholders,” said KCB Group Chairman Andrew Wambari Kairu.

He added: “Our deliberate focus on cost management, enhanced digital capabilities and customer obsession continue to give the business a springboard for further growth and to close the year stronger.”