KCB Q1 profit up slightly to Ksh.6.4 billion
KCB Group has posted a marginal 1.6 per cent growth in quarterly earnings to March with profits rising slightly to Ksh.6.4 billion from Ksh.6.3 billion last year.
The near flat growth in earnings have found backing in a 10.6 per cent rise in net interest income to Ksh.16.7 billion.
The growth helped offset a 20.3 per cent decline in non-interest funded income (NFI) to Ksh.6.3 billion to leave the Group’s total operating income flat at Ksh.23 billion.
KCB’s non-interest related expenses meanwhile shrunk slightly to Ksh13.9 billion from a flat Ksh.14 billion.
The Group’s provisions for non-performing loans (NPLs) remain unchanged at Ksh.2.9 billion as the bank saw its stock of gross NPLs race forward by 49 per cent to Ksh.98 billion.
KCB Group Managing Director Joshua Oigara has termed the first quarter outcome as resilient amidst continued uncertainty in the operating environment.
“The economic environment marginally improved in the quarter although the uncertainties from the pandemic remain a big risk to the outlook. Focus was on conserving cash, supporting customers navigate the crisis and implementing our strategic focus areas which are anchored on digital banking and excellence in customer experience,” he said.
“Revenues have remained flat with the costs declining marginally. Overall performance was largely impacted by lower non-interest income due to subdued digital lending on reduced disbursements and lower customer transactions”.
During the period, KCB failed to once again close out its target of Ksh.1 trillion balance sheet.
Its asset base stood at Ksh.977.5 billion in the quarter having grown by 3.2 per cent year on year, but was down on its 2020 closing position of Ksh.987.8 billion.
KCB is seeking to strengthen its growth through the capture of new opportunities in new markets having initiated the planned acquisition of Banque Populaire du Rwanda (BRP) and the African Banking Corporation Tanzania Limited (BancABC Tanzania).
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