KCB Group PLC posted KShs.9.8 billion in profit after tax for the first quarter 2023, supported by increased revenues.
The Group recorded a strong balance sheet growth; with total assets hitting KShs.1.63 trillion, rising on strong customer confidence, as focus shifted to supporting customers to navigate the hard economic environment while ring-fencing the business for prospects and growth.
Revenue increased by 26.9% to KShs. 36.9 billion mainly driven by the non-funded income from customer transactions across the Group network and consolidation of Trust Merchant Bank (TMB); the Group’s newest subsidiary in the Democratic Republic of Congo. This demonstrated the range and diversified income streams across the Group’s businesses, adequate to cover the elevated operating and funding costs.
The contribution of Group businesses (excluding KCB Bank Kenya) to the overall profitability was up to 35 % from 17.2% as investments in regional businesses continued to pay off. The contribution to total assets improved to close the period at 38.2%.
Commentary: Group CEO Paul Russo
“Our focus was on delivering value and support to customers to help them navigate the tough economic environment, while driving revenue growth for the Bank. The first quarter performance highlights the resilience of the business across the corporate and retail franchises. The regional businesses performed well, giving credence to the regional expansion strategy,” said KCB Group CEO Paul Russo.
“During the period, we continued to embed customer obsession across the Group to position it as the key pillar through which we deliver our strategy. We continuously pursued innovations and delivered products with leading value propositions. We are deliberate on driving stronger growth, on the back of delivering value to customers, growing the existing businesses, opening new frontiers and a tight cost management regime,” he added.
Q1 23 Performance Highlights
· NFI grew by 59.2% to KShs.14.8 billion from service fee income stream that is anchored on enhanced digital capabilities. This has resulted in customers conducting 99% of all transactions with ease and secured digital channels.
· The contribution from TMB is off to an impressive start, making it the second largest subsidiary in the Group. TMB contributed KShs. 1.9 billion in profit before tax in the quarter and 14% to the Group’s total assets.
· Costs increased by 46.1% from consolidation of TMB and expenditure to support additional revenues generated.
· Provisions rose by 99%, driven by increased credit risk and the impact of forex devaluation in Kenya, a prudent step on the backdrop of a challenging operating environment which has greatly impacted asset quality.
· On asset quality, the ratio of non-performing loans (NPL) stood at 17.5%, largely driven by downgrades from the KCB Kenya business. The Group is focused on recovery efforts and proactive management of the lending portfolio management to improve the asset quality.
· Total assets rose 40% to KShs.1.63 trillion, making KCB the largest Bank in Eastern Africa, riding on higher loans and investment in government securities which were funded by growth in customer deposits and additional borrowings.
· Customer loans were up by 32% to KShs.928.8 billion, from increased lending across the Group while customer deposits rose by 41.5% to KShs. 1.20 trillion, mainly from TMB and additional deposits from the existing businesses.
· Shareholders’ funds grew by 17% to KShs.214.8 billion from the increase in accumulated profits for the year to date.
· Capital buffers were well above regulatory limits, with core capital as a proportion of total risk weighted assets standing at 13.6% against the statutory minimum of 10.5%. Total capital to risk-weighted assets ratio was at 17.0% against a regulatory minimum of 14.5%. All banking subsidiaries were compliant with their respective regulatory capital requirements.
_1685445613.png)
- Expands footprint across disrupt
_1684830275.png)
National, May 23, 2023: Entropik, a leadi
_1684820398.jpg)
Kochi: Maruti Suzuki India Limited signed a Memorandum of Understan
_1685624681.jpeg)
- 3rd Promotional Roadshow for the upcoming RDTM in Jodhpur held today
- 3rd edition of RDTM from 14 – 16 July in Jaipur
Bangalore, 1st June 2023 – Cornerstone Group has been honored with the prestigious ‘Most Admired Luxury Proj
Kochi, 1st June, 2023: The online fashion market is about to witness something unique as Kotak M
Government / 01-06-2023
Congress MP Shashi Tharoor criticises PM Modi for discussing India’s internal matters internationally.Living-in-India / 01-06-2023
MP DIYA KUMARI EXPRESSES GRATITUDE FOR APPROVAL OF JAKHAM DAM BASED PROJECT WORTH RS. 3693 CROREBusiness / 01-06-2023
“RDTM 2023 ENDEAVOURS TO REVITALIZE DOMESTIC TOURISM IN A SUSTAINABLE WAY”Business / 01-06-2023
Cornerstone Akhinta Residences Receives Most Admired Luxury Project Award at Global Real Estate Brand Awards 2023Business / 01-06-2023
Myntra and Kotak Mahindra Bank Join Forces to Launch India’s First-of-its-kind Digital Fashion Co-Branded Credit Card Offering Unmatched Benefits for ShoppersPelikken © Copyright 2022, All Rights Reserved
_1685624743.jpeg)
_1683804197.jpg)
_1683795797.png)
_1683278905.png)
