KCB Group Plc has posted a strong performance in the first half of the year, driven by improved economic activity, robust revenues, and lower provisions charge.
Profit after tax doubled to Kes.15.3 billion from Kes. 7.6 billion a year ago amid the effects of the ongoing COVID-19 pandemic.
Revenues increased by 14% on account of higher interest income driven by an increase in earning assets and a lower cost of funding.
KCB Group Key Financial Highlights
- Profit after Tax up 102% to 15.3 billion from Kes.7.6 billion
- Assets stood at Kes. 1.02 trillion from Kes. 953 billion
- Customer Deposits increased 4% to Kes.786.03 billion from Kes.758.0B
- Loans grew 9% to close at Kes 606.9 billion
Total income increased 13.7% to Kes.51.2 billion during the period, with net interest income up by 17.7% to Kes.36.6 billion from Kes.31.1 billion last year. This was on the back of higher interest-earning assets and effective management of the cost of funding during the period.
Operating costs were up by 7% on account of an increase in staff costs as the Group enforced cost management initiatives to ring-fence the business from the impact of the ongoing healthcare crisis.
The cost of risk fell to 2.2% from 4.0%, with the ratio of non-performing loans (NPLs) at 14.3% from 13.7% in 2020. The stock of NPL closed the half at Kes.95.7 billion, from Kes.83.9 billion same period last year. Most of this increase occurred during the second half of last year, highlighting the strain on customers and their business because of the healthcare crisis.
KCB Group attained a historic milestone with the balance sheet closing the half at Kes.1.02 trillion, up from Kes.953 billion, a 7% jump.
Customer deposits were up by 4% to Kes.786.03 billion mainly due to current and savings accounts, while loans grew 9% on account of corporate term loans and retail check-offs during the period to close at Kes 606.9 billion.
The Group maintained a solid capital position, with all key ratios well above the minimum regulatory requirement. The total capital for KCB Group stood at Kes 172.6 billion, representing a total capital to risk-weighted assets ratio of 21.8% against a regulatory minimum of 14.5%. The Group’s core capital as a proportion of total risk-weighted assets closed the period at 18.2% against the Central Bank of Kenya statutory minimum of 10.5%.