KCB Group posted a KSh 45.8 billion net profit in the 9 months to September, a 49% uptick from KSh 30.7 billion recorded in the same period in 2023.
- The growth was primarily driven by a 21.9% surge in operating income to KSh 142.95 billion underpinned by double digit increases in both funded and non funded income.
- The lender attributed the growth to growth in loans to the retail sector that overrode the impact of appreciation of the shilling on the foreign currency denominated loans.
- Subsidiaries contributed 36.6% to the group’s performance with Profit after Tax growing by 98% to KSh 18.4 billion.
“We are optimistic of a strong end of the year, riding on improving market conditions, solutions for customers and tapping the great strength of our people,” Paul Russo, Chief Executive Officer, KCB Group said.
Net interest income grew by 23.9% to KSh 92.8 billion on higher returns from investments with non-funded income almost doubling, increasing to KSh 50.2billion on the back of an uptick in fees and commissions coupled with increased forex trading income.
The lender saw the gross non-performing loans (NPLs) increase by 15.1% to KSh 215.3 billion with the biggest contributors being KCB Kenya and National Bank Kenya. This deteriorated the NPL ratio to 18.5% – above the industry average of 16.4%. To cushion the surge, the management increased the loan loss provisions by 12.2% to KSh 17.8 billion.
Customer loans ended the quarter 0.5% higher at KSh 1.1 trillion while customer deposits edged lower 7.1% to KSh 1.5 trillion with the lender contracting their holdings in government securities by 2.1% to KSh 318.6 billion.
Earnings per share grew to KSh 18.99, from KSh 12.75 in Q3 2023, driven by robust growth in total operating income.
