KCB Group said its net profit more than doubled in the first half of this year compared to the same period in 2020. The nation’s second-largest bank by assets reported a net profit of KSh15.3 billion in the first six months of the year, up from KSh7.6 billion a year earlier.
KCB’s primary source of revenue, interest income, increased by 14% to KSh47.1 billion on 30th June 2021 from KSh41.4 billion on 30th June 2020. The bank’s non-interest income, comprised of fees and commissions on loans and advances, foreign exchange trading income, dividend income, and other income, grew by 6% to KSh14.8 billion from KSh13.96 billion in June last year.
In the period under review, KCB Group managed to cut its operating expenses to KSh40 billion from KSh42.5 billion the previous year mainly by reducing its provisions for bad loans.
The lender’s customer deposits increased to KSh786 billion at the end of June 2021 compared to KSh758.2 billion at the end of June 2020. Its loan book expanded by 8% to KSh607 billion as of 30th June this year from KSh559.9 billion as of 30th June last year.
KCB Group’s Chief Finance Officer Kimathi Kiambi noted that all the bank’s subsidiaries posted steady growth in the half-year period despite the tough operating environment. “We have seen a strong performance and contribution from our subsidiaries, a 54% growth in Profit before Tax. Total contribution to Profit-before-tax from the subsidiaries outside of Kenya now stands at 15.2%,” said Kimathi Kiambi.
The bank is in the process of acquiring subsidiaries in Rwanda and Tanzania and as a result, KCB group will not pay an interim dividend for the half-year period that ended on 30th June 2021.
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