KCB Group Q3 Profit Doubles to KSh 25.1 Bn

KCB Group Plc more than doubled its profit after tax for the nine months ending September 2021. Net profit stood at KShs.25.2 billion from KShs.10.9 billion a year ago, a 131% jump, driven by higher income and reduced provisions as recovery from the COVID-19 pandemic accelerated in quarter three.

KCB Group Moi Avenue Branch in Kenya. PHOTO | KHUSOKO

KCB Group said on Wednesday its pre-tax profit for the nine months ended September doubled to Ksh 35.8 billion from Ksh 17.14 billion in the same period of last year.

Its net profit rose by 131 per cent during the period attributed to income growth and reduced loan loss provision surging to Kshs. 25.2 billion compared to Kshs. 10.9 billion.

“This is the strongest quarter for us since the COVID-19 pandemic struck 20 months ago, with clear signs of economic recovery across key sectors,” said KCB Group chief executive Joshua Oigara said in a statement.

Key Financial Highlights

  • Balance Sheet – Increased 15% to KShs.1.122 trillion.
  • Customer gross loans – Increased 12% to KShs.718 billion on improved lending in Kenya, Uganda and Rwanda.
  • Customer Deposits – stood at KShs.859 billion, an 11% jump due to organic growth in Kenya.
  • Profit after Tax – Up 131% from KShs.10.9 billion to KShs.25.2 billion.
  • Revenue – Increased 16% to KShs.79.9 billion on account of an increase in interest income driven by an increase in earning assets, non-funded income, and lower cost of funding.
  • Non-funded income – Increased by 10% on increased customer transactions.
  • Costs – Up by 9% to KShs.34.7 billion.

The lender declared an interim dividend of KSh1 per share.

“The directors have approved an interim dividend of Sh1 for every ordinary share. 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,” KCB said in a statement.

The Group said it is close to concluding the acquisition of a majority stake in the African Banking Corporation Tanzania Limited (BancABC Tanzania) in Tanzania.

It successfully completed the acquisition of Banque Populaire du Rwanda (BPR) in August 2021 and has kicked off integration activities in what will see the full consolidation of BPR and KCB Bank Rwanda into a single banking entity.

“This twin acquisition will bolster the Group’s market share in these two key markets and grow the contribution of international businesses to the Group.”