KCB Group reported a 27.5 per cent rise in net profit for the half-year ended June 2022 to Ksh 19.6 billion, driven by higher income from lending and transactions.
Total operating income increased by 16.8 per cent, mainly driven by a 29.9 per cent growth in Non- Funded Income.
KCB Group businesses increased their profit contribution to 16.8 per cent, driven by new business growth and the impact of BPR Bank in Rwanda.
“We delivered solid results, supported by our diversified business model as we sharpened our focus on customer obsession and execution to better support our customers in a rather difficult operating environment,” KCB Group CEO Paul Russo.
Interest income grew by 15.7 per cent to Sh54.5 billion, mainly driven by a 31.5 per cent growth in income from government securities.
This was partially offset by a 30.3 per cent increase in interest expense as the cost of funding marginally increased during the period. Net interest income increased by 11.5 per cent to Sh40.6 billion.
The 29.9 per cent jump in non-funded income was driven by lending fees and services fees – on account of increased activity, especially in trade finance and foreign exchange income.
Mobile lending values were up 23 per cent to Sh91billion while total values transacted on the mobile were up 22 per cent to 1.28 trillion.
This performance boosted the Group NFI ratio to 32.1 per cent compared to 28.9% achieved in the previous year. Provisions decreased 34.4 per cent, largely due to a drop in corporate and digital lending impairment charges.
Operating costs went up by 20.3 per cent on the consolidation of BPR Bank in Rwanda, increased spending on customer acquisition initiatives, investment in technology and higher staff costs.
This increase drove up the Group cost to income ratio to 45.7 per cent
Total assets in the lender stood at Sh1.21 trillion for the period, up 18.4 per cent on additional lending, deposits growth, and the consolidation of the BPR subsidiary.
Customer loans increased by 20.2 per cent to Sh730 billion from new disbursements across the Group, while customer deposits grew to Sh909 billion, up by 15.6 per cent from the previous year.
“Looking ahead, we remain confident of a stronger second half and an economic turnaround across the region. We remain focused on delivering on business growth while at the same time continuously building a socially responsible and sustainable business,” Group Chairman Andrew Wambari Kairu.
KCB did not declare an interim dividend.
Read also; KCB Group to Acquire DRC Lender Trust Merchant Bank.
