KCB Group Plc’s after-tax profits for the first quarter ending March 31, 2024 surged by 69% to KES 16.5 billion driven by substantial increases in both net interest income and non-funded income.
- •Net interest income saw an increase of 40.8% to reach KES 31.1 billion while total interest income was up 46% to KES 49.1 billion
- •Non-funded income rose by 17.8% to KES 17.4 billion driven by an 81.2% surge in foreign exchange trading income to KES 4.8 billion
- •The bank’s total operating income jumped by 31.6% KES 48.5 billion.
Operating expenses, excluding provisions, increased by 11.3% to KES 21.0 billion, driven by a 13.6% rise in other expenses and a 3.1% increase in staff costs.
KCB Group faced challenges with loan loss provisions, which jumped by 53.4% to KES 6.3 billion, as gross non-performing loans increased by 16.3% to KES 205.3 billion. A big chunk of the non-performing loans were in sectors like manufacturing, trade, transport, and construction.
Net loans and advances grew by 9.5% to KES 1.0 trillion, though they fell by 7.2% quarter-over-quarter. Government and investment securities saw a 32% rise to KES 393.0 billion.
Customer Deposits increased by 25.4% to KES 1.5 trillion, largely from the Kenyan market while Customer Loans rose by 12.2% to KES 1.13 trillion. Borrowed funds rose by 21.5% o KES 76.1 billion.
“Looking ahead, we are upbeat about the prospects in all the markets we operate in.” said KCB Group Chief Executive Officer Paul Russo in a statement.
RELATED;
Co-op Bank Kenya Q1 2024 Up 7.7% to KES. 6.6 billion
Stanbic Bank’s Q1: Profit Stagnates On FX Trading Income Dip
